In the bid to widen access to affordable housing for Nigerians, the Federal Government yesterday announced the launch of a N100 billion private sector-driven real estate financing scheme.
This initiative is part of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) and represents the second phase of funding under the programme.
MREIF aims to raise N1 trillion to support Nigeria’s housing sector, providing long-term, low-cost mortgage financing for homeownership.
The latest funding – Series 2 – is private sector-driven, allowing businesses and investors to contribute to the development of housing across the country.
One of the key benefits of the financing scheme is the provision of affordable mortgage loans with repayment periods of up to 25 years and interest rates set at 11-12 percent – significantly lower than the rates offered by commercial banks.
This is made possible through a blended finance structure, where public funding, sourced at one per cent, is combined with private sector investments to reduce borrowing costs.
MOFI is leading efforts to attract key private sector players, such as asset managers, financial advisers and issuing houses to raise the N100 billion from the capital market.
This second phase builds on the success of Series 1, which raised N150 billion, bringing the total funding secured so far to N250 billion.
With Nigeria facing an estimated 20 million housing deficit, the MREIF is designed to provide long-term financing for housing development, helping millions of Nigerians achieve homeownership.
Minister of Finance and Coordinating Minister of the Economy Wale Edun, stressed the importance of private sector involvement in boosting the housing sector.
Mr. Edun said: “The successful completion of Series 1 shows the government’s dedication to making homeownership accessible.
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Now, with Series 2, we are inviting private investors to be part of this journey, creating jobs, improving infrastructure, and strengthening the economy.”
MOFI’s Managing Director/Chief Executive Officer (MD/CEO), Dr. Armstrong Takang, described Series 2 is a major step toward unlocking private capital for the housing market.
“By using blended finance, we are establishing a sustainable system for affordable homeownership that will benefit all Nigerians,” he said.
The Chairman of MOFI Board, Dr. Shamsudeen Usman, described MREIF as a landmark achievement in 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 said.
