MOFI subscribes to N150bn real estate fund to address Nigeria’s housing deficit

The Ministry of Finance Incorporated (MOFI) has subscribed to the N150 billion series 1 offering under the MOFI real estate investment fund (MREIF) as the sponsor and anchor investor.

According to a statement by the ministry on Friday, the milestone marks a major step towards addressing Nigeria’s housing deficit and expanding access to affordable homeownership.

MOFI said the next phase, series 2, will aim to raise an additional N100 billion from private sector investors, bringing the total initial funding to N250 billion.

“MREIF is designed to provide long-term, affordable financing at scale for housing developments and homeownership,” the statement reads.

“The initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, tackling Nigeria’s estimated 20 million housing deficit through sustainable and innovative solutions.

“MREIF’s broader vision is to mobilize NGN1 trillion to fully transform Nigeria’s housing sector and related infrastructure.

“MREIF is designed as a bold public-private partnership, addressing systemic challenges in housing finance. It prioritizes affordable mortgages with repayment tenors of up to 25 years, offering interest rates envisioned at 11-12%, which is far below prevailing commercial market rates.

“This is made possible through a blended finance approach, where subsidized funding from MOFI is combined with private sector funding at market rates.

“This collaborative financing structure enables more favourable mortgage terms, thereby expanding access to affordable housing finance for millions of Nigerians.”

At a signing ceremony hosted by Wale Edun, minister of finance and coordinating minister of the economy, MOFI celebrated the imminent completion of series 1 following initial approvals from the Securities and Exchange Commission (SEC).

Speaking at the event, Edun said the N150 billion subscription demonstrates the government’s commitment to fostering accessible housing, creating jobs within the sector, and driving economic growth.

Also, Armstrong Takang, managing director of MOFI, described the subscription as a pivotal achievement for Nigeria’s housing sector.

“This achievement is a pivotal moment for Nigeria’s housing sector. It sets the foundation for private sector participation and reinforces our vision to deliver sustainable housing solutions for all Nigerians,” Takang said.

“We thank Mr. President for his bold leadership in tackling our nation’s housing deficit.”

Ahmed Wadada, chairman of the senate committee on public accounts, also lauded the initiative, calling it “a milestone in the history of Nigeria”.

Wadada added that the initiative reflects the renewed hope agenda’s focus on creating sustainable homeownership opportunities for Nigerians.