Nigeria’s housing sector is set for a major shift as the Ministry of Finance Incorporated (MOFI) has successfully secured N100 billion through the MOFI Real Estate Investment Fund (MREIF) to drive affordable housing projects.
This marks another milestone in the country’s ongoing efforts to bridge the housing deficit and make homeownership accessible to more Nigerians.
The journey to this funding boost began in December 2024, when MOFI announced that the N150 billion MREIF Series 1 bond was fully subscribed. Building on that success, a second offering in February 2025, targeting private investors, has also been fully subscribed. This brings the total funds raised under MREIF to an impressive N250 billion. The strong investor participation reflects a growing commitment from the private sector to support real estate development.
MOFI, in a statement, emphasized the high level of private sector participation in the N100 billion issuance. It noted that the fund attracted a diverse group of institutional investors. The overwhelming demand for the Series 2 offering signals strong investor confidence in the fund’s structure and long-term potential. Unlike previous housing initiatives, MREIF is structured to deliver competitive returns while ensuring affordable homeownership through long-term, low-cost mortgage financing.
Government Endorsement and Future Impact
Minister of Finance, Wale Edun, hailed the success of the Series 2 tranche, calling it the beginning of a long-overdue transformation in the housing sector. He stated that the full subscription of the Series 2 offering demonstrates the private sector’s trust in MREIF as a viable and sustainable investment vehicle. He further emphasized that the initiative is addressing one of the biggest challenges in the country—access to affordable housing finance.
Managing Director of MOFI, Armstrong Takang, reinforced the fund’s significance. He explained that MREIF is uniquely structured to tackle both supply and demand issues in the housing market. The financing structure provides affordable mortgage options with up to 20-year repayment tenors at interest rates as low as 12 percent. This is far below typical commercial rates, making homeownership more accessible for Nigerians.
Takang also noted that the MREIF’s N1 trillion multi-tranche programme is just getting started. Future rounds will focus on expanding investor participation and accelerating housing development. The initiative will also integrate seamlessly with commercial banks, mortgage providers, developers, and financial institutions.
A New Era for Nigeria’s Housing Sector
With the success of this latest offering, MREIF is laying the foundation for a new era in Nigeria’s real estate sector. If these investments continue to gain traction, the dream of widespread affordable homeownership in Nigeria may soon become a reality. The strong investor confidence and the government’s commitment to long-term housing solutions signal a brighter future for millions of Nigerians seeking secure and affordable housing.
