The Ministry of Finance Incorporated (MOFI) has begun handing over homes to beneficiaries of its single-digit mortgage housing scheme, the MOFI Real Estate Investment Fund (MREIF), aimed at closing Nigeria’s massive housing gap through flexible, affordable financing.
The Managing Director of MOFI, Dr. Armstrong Takang, announced the development at the just-concluded Africa International Housing Show (AIHS) in Abuja. He said the initiative represents a transformative step toward solving Nigeria’s housing deficit by offering mortgages at a 9.75% interest rate—currently one of the lowest in the market.
“Many Nigerians have already received their homes through this programme. There’s no better offer in the industry today,” Dr. Armstrong said.
To ensure inclusivity, MOFI has also launched a Sharia-compliant, non-interest product for individuals who prefer alternative financing options.
With a housing deficit of about 20 million units, high mortgage rates, and limited refinancing options, Nigeria faces deep-rooted challenges in housing access. Dr. Armstrong described MREIF as a “bold, ambitious and innovative intervention” designed to overcome these barriers and ensure long-term sustainability in the sector.
Approved and regulated by the Securities and Exchange Commission (SEC), MREIF is a ₦1 trillion fund structured to promote good governance, liquidity, and market accessibility. MOFI sponsors the fund, but it operates independently with its own fund manager and is open to institutional investors.
The fund has already raised ₦250 billion, with mortgage disbursements underway in three geographical zones. Backed by a AAA rating from Agusto and AA from GCR, MREIF issues single-digit, 20-year mortgages through accredited financial institutions and offers off-take guarantees to qualified developers.
“This fund is not just about home ownership; it’s about energizing the entire housing value chain and creating sustainable economic impact,” the MOFI chief said.
He praised the public-private partnership (PPP) driving the fund, describing it as a model solution to Nigeria’s longstanding housing finance challenges. He also commended President Bola Ahmed Tinubu’s Renewed Hope Housing Initiative, which inspired MREIF.
Fund partners include:
- ARM – Fund Manager
- VETIVA – Financial Advisors
- Olaniwun Ajayi – Legal Advisors
- Diya Fatemilehin – Technical Advisors
- First Bank of Nigeria – Custodian
- STL Trustees – Trustees
- TSL Engineering – Project Managers
Dr. Armstrong reaffirmed that MREIF will continue to expand access to housing through market-aligned, investor-friendly models, positioning itself as a key driver of long-term housing investment in Nigeria.
