The Federal Government has opened direct retail investor participation in its N1 trillion housing funding scheme, designed to bridge Nigeria’s housing deficit and strengthen the domestic mortgage market. The initiative is expected to make homeownership more accessible through affordable mortgage options and long-term financing.
The Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun, is scheduled to lead the official listing of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) at the Nigerian Exchange (NGX) tomorrow. The MREIF, which targets N1 trillion, has already launched two tranches valued at N250 billion each. Through the NGX listing, existing and new investors will be able to trade units of the real estate investment trust (REIT), allowing the fund to expand through additional issuances.
The MREIF is structured to provide affordable mortgage financing with repayment periods of up to 25 years. It offers interest rates that are significantly lower than commercial market rates and is designed to unlock value from public real estate assets through a transparent, market-driven platform. According to government officials, the listing on the NGX is expected to expand access to real estate investment, stimulate growth in the housing sector, and contribute to national development while offering investors competitive long-term returns.
Seed funding for the project was provided by the Federal Government, while private sector investors have been encouraged to participate in subsequent phases. Beyond housing, the listing marks a strategic policy shift from direct government spending to market-based social investment. This new model allows both the public and private sectors to collaborate in financing affordable housing sustainably.
By bringing the MREIF into the capital market, the government is creating an avenue for private and institutional investors to directly engage in real estate financing. This move is expected to mobilise long-term capital, deepen the Nigerian capital market, and improve liquidity in the housing finance ecosystem. The listing will also enhance transparency and accountability, as MREIF will comply with NGX disclosure rules, including regular financial reporting and investor oversight aimed at building confidence and ensuring efficient fund management.
Under the scheme, civil servants and other qualified Nigerians can access mortgage loans with a 10 per cent equity contribution and single-digit interest rates. This is a significant shift from the double-digit rates that have long limited affordable homeownership.
The MREIF is being implemented through a partnership involving MOFI, Family Homes Funds Limited (FHFL), and ARM Investment Managers, who are serving as the fund managers. Funding for the project has been structured to promote both affordability and sustainability. A key element of this structure is a credit line secured by FHFL from the African Development Bank (AfDB), aimed at reducing financing costs and making lower mortgage rates possible.
Managing Director of MOFI, Dr Armstrong Takang, described the initiative as a major milestone in the government’s commitment to promoting affordable homeownership across the country. “This is about ensuring that Nigerians can own homes at interest rates that make sense,” Takang said. “From the start, we set a ceiling of 12 per cent on mortgage rates under this fund, and we’re committed to bringing that down further. Today’s arrangement with Family Homes Funds allows us to offer single-digit rates below 10 per cent.”
He added that the government’s strategic focus is to continuously secure cheaper funding from both local and international sources, ensuring that savings are passed on to citizens through reduced mortgage rates.
The MREIF mortgage facility will be offered through selected commercial and mortgage banks licensed by the Central Bank of Nigeria (CBN). These institutions will disburse loans in accordance with standards set by the Nigeria Mortgage Refinance Company (NMRC) to ensure proper risk management.
National Coordinator of MREIF, Mr Sani Yakubu, said the programme was specifically designed to deepen mortgage penetration and make homeownership more achievable for Nigerians. “We are expanding the platforms through which Nigerians can access mortgage financing,” Yakubu stated. “The private sector is leading this effort, and the fund managers are working closely with financial institutions that have the regulatory capacity to deliver mortgage services.”
Yakubu disclosed that over 10 financial institutions have already been onboarded for the initial phase of the programme, with more partners expected to join in subsequent stages.
