Nigerians have started accessing the single-digit mortgage initiated by the Ministry of Finance Incorporated (MOFI), its Chief Executive Office, Dr. Armstrong Ume Takang, has revealed.

Designed to be implemented through its Real Estate Investment Fund (MREIF), Takang said the initiative is geared towards transforming Nigeria’s housing sector by bridging the mortgage financing gap through flexible terms, including single-digit interest rate.

Takang, who spoke at the Africa International Housing Show (AIHS) held in Abuja, revealed plans by MOFI to roll out a Shariah-compliant non-interest option and include Nigerians in the Diaspora.

He disclosed that MREIF recently reduced its initial interest rate of 12 per cent to 9.75 per cent with a view to expanding access to mortgages for Nigerians.

Takang stated that through innovative financing, the Federal Government was poised to radically bridge the housing gap in Nigeria under a scheme designed for sustainability and wide-ranging impact.

He argued that the MREIF was a much-needed, long-overdue intervention in the housing sector with real capacity to radically transform the entire housing value chain and deliver long-term impact.

He stated that MREIF was designed to hedge against liquidity challenges, corporate governance issues, accessibility barriers, and the perennial challenge of sustaining initiatives for the long-term.

Speaking on Nigeria’s housing needs, Takang revealed the existence of a housing deficit of about 20 million units, prohibitive mortgage rates, and low mortgage tenors.

He listed other barriers to housing access to include limited refinancing options and shallow secondary markets.

Against the backdrop of these challenges, the MOFI CEO revealed that MREIF was conceived as a timely and bold innovative solution.

He also stated that MREIF’s structure was designed to achieve the best corporate governance standards possible, replicating proven market-aligned success models.

He explained  that to achieve this, MOFI serves only as the sponsor of the Fund, while MREIF enjoys the full status of a regulated market instrument, which has a Fund Manager and is open to institutional investors.

With an AAA rating from Agusto and an AA rating from GCR, he stated that MREIF has established itself as a highly credible, market-driven investment platform to address Nigeria’s housing finance gap by issuing single-digit mortgages through eligible financing institutions over a period of 20 years.