The federal government has launched a N100 billion private sector-led real estate financing scheme aimed at expanding access to affordable housing for Nigerians. This initiative, part of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), represents the second phase of funding under the programme, which aims to tackle Nigeria’s housing deficit.
MREIF, which has a target of raising N1 trillion, is designed to provide long-term, low-cost mortgage financing for Nigerians seeking homeownership. The scheme offers affordable mortgage loans with repayment periods of up to 25 years and interest rates between 11% and 12%, which are significantly lower than those offered by commercial banks.
This financing structure is made possible through a blended finance model, where public funding sourced at just one percent is combined with private sector investments to reduce borrowing costs, ultimately making homeownership more accessible.
The government is actively engaging key private sector players such as asset managers, financial advisers, and issuing houses to raise the N100 billion from the capital market. This funding will be used to support affordable housing development across the country.
The new phase builds on the success of Series 1, which raised N150 billion, bringing the total funding for MREIF to N250 billion. This comes at a time when Nigeria is facing a housing deficit of approximately 20 million units. The initiative is expected to play a crucial role in addressing this gap, offering a sustainable path to homeownership for millions of Nigerians.
Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized the importance of private sector involvement in revitalizing the housing sector. He stated, “The successful completion of Series 1 shows the government’s dedication to making homeownership accessible. With Series 2, we are inviting private investors to be part of this journey, creating jobs, improving infrastructure, and strengthening the economy.”
Dr. Armstrong Takang, MD/CEO of MOFI, added that the second phase of funding represents a major step towards unlocking private capital for the housing market and establishing a sustainable system for affordable homeownership.
Dr. Shamsudeen Usman, Chairman of MOFI Board, described the scheme as a landmark achievement for Nigeria’s housing sector. “The Renewed Hope Agenda is focused on delivering sustainable homeownership opportunities for Nigerians, and MREIF is a major driver of this vision,” he concluded.
