The Federal Government’s MOFI Real Estate Investment Fund (MREIF) has successfully closed its N250 billion pilot fundraising, marking the beginning of a N1 trillion multi-tranche programme aimed at transforming Nigeria’s housing sector.
The fund, managed by the Ministry of Finance Incorporated (MOFI), has attracted significant private-sector interest, laying the groundwork for expanded housing development across the country.
In a statement released in Abuja, MOFI described the fundraising success as a major milestone in mobilizing capital for real estate investments.
The pilot phase was conducted in two tranches:
- Series 1: A N150 billion issuance, fully subscribed by MOFI to establish the fund’s foundation.
- Series 2: A N100 billion issuance in February 2025, which saw strong demand from institutional investors, leading to full subscription.
MOFI emphasized that private sector participation in Series 2 positions MREIF as a credible and efficient investment vehicle capable of delivering long-term value while addressing Nigeria’s housing deficit.
The fund, which has been highly rated by Agusto & Co. (Aaa) and GCR Ratings (AA), is designed to provide competitive returns while enabling affordable homeownership through long-term, low-cost mortgage financing.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, hailed the success of the pilot phase, stating that the full subscription of the Series 2 issuance underscores investor confidence in MREIF’s ability to deliver structured, long-term housing finance solutions.
“The overwhelming response from investors reflects a strong appetite for sustainable housing finance options and affirms MREIF as a viable channel for real estate investment in Nigeria,” Edun said.
Managing Director of MOFI, Dr. Armstrong Ume Takang, described the fund as a game-changer in Nigeria’s housing finance system. He noted that subsequent fundraising rounds will focus on expanding investor participation and deepening market integration.
MREIF has been designed to address both supply and demand challenges in Nigeria’s housing market:
- For homebuyers: It offers affordable mortgage options with repayment periods of up to 20 years and interest rates as low as 12%, significantly lower than prevailing commercial rates.
- For developers: It provides off-take guarantees, unlocking financing for large-scale construction projects to boost the delivery of affordable housing units.
The fund will also collaborate with commercial and mortgage banks, real estate developers, and financial institutions to scale long-term housing finance solutions.
Following the successful pilot phase, MOFI is now working on expanding investor participation in the next rounds of fundraising to drive the government’s goal of affordable housing for millions of Nigerians.
