The Federal Government of Nigeria has unveiled the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), a ₦250 billion initiative designed to bridge the housing finance gap and stimulate economic growth. Announced via the Ministry of Finance’s official social media channels, the fund aims to provide low-cost, long-term mortgage financing with repayment terms of up to 25 years. This initiative offers a viable alternative to the high-interest, short-term loans typically provided by commercial banks.
At the signing ceremony, Mr. Wale Edun, the Honourable Minister of Finance and Coordinating Minister of the Economy, emphasized the fund’s potential impact. He stated, “This initiative bridges the housing finance gap, stimulates the construction sector, and aligns with President Bola Ahmed Tinubu’s vision to promote homeownership, create jobs, and drive economic development.”
The MREIF is structured as a public-private partnership (PPP) and will be implemented in two phases. The first tranche involves ₦150 billion to initiate private sector participation, while the second tranche will provide an additional ₦100 billion to expand the program further. This structure is intended to incentivize developers to construct affordable housing, thereby boosting activity in both the real estate and construction sectors.
The fund promises several key benefits, including enabling affordable homeownership through long-term, low-cost mortgages that allow Nigerians to own homes and build generational wealth. It aims to enhance construction activity, creating jobs and promoting economic development, while also encouraging private developers to engage in providing affordable housing solutions. Dr. Armstrong Takang, Managing Director of MOFI, highlighted the broader implications of the fund, stating, “The MREIF provides an opportunity for Nigerians to build generational wealth through sustainable homeownership.”
The launch event drew participation from government officials, financial institutions, and leaders from the private sector, reflecting strong support for the initiative. With its focus on addressing the housing deficit and promoting sustainable homeownership, the MREIF is poised to transform Nigeria’s housing sector while contributing to economic stability and growth.
