Abuja, Nigeria – In a major push to address Nigeria’s chronic housing shortage, the Ministry of Finance Incorporated (MOFI) has unveiled a N100 billion Series 2 Real Estate Investment Fund, bringing total commitments under the initiative to N250 billion.
Expanding Affordable Housing Finance
The MOFI Real Estate Investment Fund (MREIF), which ultimately targets N1 trillion in financing, offers:
- 25 years mortgage terms
- Competitive interest rates of 1112% (below commercial rates)
- Public-private partnership structure to scale investment
Finance Minister Wale Edun emphasized that the fund aligns with President Tinubu’s Renewed Hope Agenda, stating: “This initiative demonstrates our commitment to making homeownership accessible while creating jobs and boosting infrastructure.”
Key Differentiators from Series 1
While the N150 billion Series 1 was fully funded by MOFI, the new tranche actively seeks private sector participation through:
- Partnerships with fund managers and issuing houses
- Capital market mobilization from institutional investors
- Blended finance model to derisk housing investments
How the Fund Operates
MOFI CEO Armstrong Takang clarified the fund’s unique approach:
- Not a direct mortgage lender or developer
- Creates investment instruments to attract capital into housing
- Mortgages will be issued through partner financial institutions starting this month
- Broader Economic Impact
MOFI Board Chairman Shamsuddeen Usman described the initiative as “transformative for Nigeria’s economy,” with SEC DG Emomotimi Agama highlighting its alignment with:
- Financial inclusion goals
- International best practices
- Capital marketdriven development
Next Steps
With the N100bn Series 2 launch, MOFI advances toward its N1 trillion target, which could:
- Stimulate construction sector jobs
- Improve housing affordability
- Attract institutional investment to Nigeria’s real estate market
“This is just the beginning of MOFI’s transformative economic initiatives,” Usman concluded.
