The Ministry of Finance Incorporated (MOFI) has launched the N100 billion series 2 offering under the MOFI real estate investment fund (MREIF).
On December 20, 2024, the ministry had announced a full subscription of N150 billion for series one – bringing the total initial funding under MREIF to N250 billion.
However, series two is a public-private partnership (PPP) involving fund managers, financiers, fund advisors and trustees.
Speaking at the launch of series 2 on Monday, Wale Edun said the milestone marks a major step towards addressing Nigeria’s housing deficit and expanding access to affordable homeownership.
“MREIF’s ultimate goal is to raise N1 trillion to transform Nigeria’s housing sector, enabling millions of Nigerians to access affordable homeownership,” Edun said.
“The fund prioritises affordable mortgage financing with repayment tenors of up to 25 years and interest rates targeted at 11-12 percent, significantly lower than prevailing commercial rates.
“This is made possible through a blended finance structure that combines subsidised public funding with market-rate private sector investments.
“The successful completion of Series 1 has demonstrated the government’s commitment to making homeownership more accessible.
“Now, with Series 2, we are opening the doors for private investors to join this transformative journey, creating jobs, enhancing infrastructure, and strengthening the economy.”
Edun, who said the public-private partnership (PPP) is aimed at also creating job opportunities, urged the partners to deliver the deal as soon as possible.
On his part, Armstrong Takang, managing director of MOFI, reaffirmed the fund’s long-term vision.
Takang said MOFI is interested in meeting the demand of the market and will ensure developers get access to funds to meet supply.
“Series 2 marks a critical step toward unlocking private capital at scale for Nigeria’s housing market,” he said.
“By leveraging blended finance, we are creating a sustainable framework for affordable homeownership that benefits all Nigerians.”
Shamsuddeen Usman, chairman of MOFI board, lauded the initiative, describing it as “a landmark achievement in Nigeria’s housing sector”.
He said the initiative, which involves the capital and money market, will increase financial inclusion.
“The Renewed Hope Agenda is focused on delivering sustainable homeownership opportunities for Nigerians, and MREIF is a major driver of this vision,” Usman said.
“With Series 2, MOFI is paving the way for deeper private sector collaboration to accelerate housing development across the nation.
“As the fund progresses toward its NGN1 trillion goal, it will continue to catalyse investments that reshape Nigeria’s housing landscape and improve the lives of millions.”
Usman said “overall, the programme is a win-win for all of us, most especially the average Nigerian”.
