The Federal Government has launched the ₦250 billion MOFI Real Estate Investment Fund (MREIF) to provide affordable, long-term mortgage financing options.
MREIF offers low-cost mortgages with repayment tenors of up to 25 years and interest rates as low as 11-12 per cent, aiming to stimulate economic growth, promote homeownership, and create jobs.
The government’s initiative has been hailed as a milestone in Nigeria’s history. It is poised to drive private sector participation and support economic development.
According to the government, MREIF is introduced by the Ministry of Finance Incorporated (MOFI).
Basically, the information was contained in a statement by the Federal Ministry of Finance on its X handle (formerly Twitter).
The statement says the fund will be divided into two series.
Meanwhile, the first series, worth ₦150 billion, is expected to drive private sector participation, while the second series will raise an additional ₦100 billion.
Public-private Mortgage Partnership
This aligns with President Bola Ahmed Tinubu’s vision to promote homeownership, create jobs, and support economic development.
The MREIF is designed as a bold public-private partnership, addressing systemic challenges in housing finance.
It prioritises affordable mortgages with repayment tenors of up to 25 years and interest rates as low as 11-12 percent. This is significantly lower than prevailing commercial market rates.
The initiative has received widespread praise, with the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, highlighting the government’s commitment to fostering accessible housing, creating jobs, and driving economic growth.
Furthermore, Armstrong Takang, MD/CEO of MOFI, described the achievement as a pivotal moment for Nigeria’s housing sector.
He says it sets the foundation for private sector participation and reinforcing the vision to deliver sustainable housing solutions for all Nigerians.
Also, the Chairman of the Senate Committee on Public Accounts, Ahmed Aliyu Wadada, commended the initiative as “a milestone in the history of Nigeria”.
He says it reflects the Renewed Hope Agenda’s focus on creating sustainable homeownership opportunities for Nigerians.
The Mortgage Banking Association of Nigeria (MBAN) has also applauded the Federal Government’s initiative.
