The Federal Government has opened direct retail investor participation in its N1 trillion housing funding scheme, aimed at bridging Nigeria’s housing deficit and deepening the domestic mortgage market.
The Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun, is expected 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 worth N250 billion each. The NGX listing will enable existing and new investors to trade units of the real estate investment trust (REIT) and allow the fund to expand through additional issuances.
Designed to provide affordable mortgage financing with repayment periods of up to 25 years, the MREIF offers interest rates substantially lower than commercial market rates. It is also structured to unlock value from public real estate assets through a transparent, market-driven investment platform.
The fund’s listing on the NGX is expected to expand access to real estate investment, stimulate sectoral growth, and contribute to national development while offering investors competitive long-term returns.
Seed funding was provided by the Federal Government, while private sector investors have been incentivised to drive subsequent phases of the project.
Beyond housing, the listing signals a strategic shift in government policy—from direct public spending to market-based social investment. This approach allows both government and private investors to collaboratively finance affordable housing in a sustainable manner.
By bringing MREIF into the capital market, the government is creating a channel for private and institutional investors to participate directly in real estate financing. This is expected to mobilise long-term capital, deepen the Nigerian capital market, and improve liquidity within the housing finance ecosystem.
The listing also promotes transparency and accountability, as MREIF will now be subject to NGX disclosure requirements, including periodic financial reporting and investor oversight—measures aimed at strengthening confidence and ensuring efficient use of funds.
Under the scheme, civil servants and other eligible Nigerians will be able to access mortgage loans with only a 10 per cent equity contribution and single-digit interest rates—marking a departure from the double-digit rates that have long hindered affordable homeownership.
The initiative is being implemented through a partnership between MOFI, Family Homes Funds Limited (FHFL), and ARM Investment Managers, who serve as fund managers for the MREIF.
Funding is structured to ensure both affordability and sustainability. A major component is a credit line secured by FHFL from the African Development Bank (AfDB), aimed at reducing the cost of financing and making lower-rate mortgages possible.
Managing Director of MOFI, Dr Armstrong Takang, described the initiative as a milestone in the government’s drive to promote affordable homeownership.
“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 initiative’s strategic focus is to continually secure cheaper funding from local and international sources, with the savings passed on to citizens through reduced mortgage rates.
The MREIF mortgage facility will be available through selected commercial and mortgage banks licensed by the Central Bank of Nigeria (CBN), which will disburse loans in line with the Nigeria Mortgage Refinance Company (NMRC) standards to ensure effective risk management.
National Coordinator of MREIF, Mr Sani Yakubu, said the programme was designed to deepen mortgage penetration and make homeownership more accessible to Nigerians.
“We are expanding the platforms through which Nigerians can access mortgage financing,” he said. “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 revealed that over 10 financial institutions have already been onboarded for the initial phase, with more partners expected to join in subsequent stages.
