MRIEF plans non-interest housing fund as stakeholders seek broader mortgage access

The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is finalising plans to launch a non-interest housing fund as part of efforts to deepen financial inclusion and expand access to affordable housing finance in Nigeria.

 

The disclosure was made by Mujahid Usman, Senior Financial Analyst at MREIF, during a panel session at the BusinessDay Abuja Real Estate Conference 2026, themed “From Policy to Projects: Mobilising Capital for Sustainable Real Estate Development.”

 

Usman said the proposed non-interest fund is currently awaiting final approval from the Minister’s Office and is designed to ensure that more Nigerians, particularly those seeking Shariah-compliant financing options, can access homeownership opportunities.

 

“We are planning a non-interest fund that is almost ready. We are only waiting for final approval from the minister’s office,” he said.

 

He stressed that beyond introducing new financing products, Nigeria must develop credible investment structures capable of attracting long-term domestic and international capital into the real estate sector.

 

According to him, the country’s housing challenge is not solely about the availability of money but about creating governance frameworks that inspire investor confidence.

 

“The money is there, but investors want to be sure their funds are protected. You have to create structures that people can trust before private sector players and international institutions will commit capital,” he said.

 

Usman disclosed that MREIF has already secured over N100 billion from banks, pension fund administrators and other financial institutions after years of structuring an investment vehicle with strong governance and regulatory oversight.

 

He noted that the fund has so far facilitated 2,020 mortgages worth more than N140 billion, with an average property value of about N68 million, although mortgages as low as N5 million have also been financed.

 

According to him, the mortgages are offered through participating financial institutions at 9.75 per cent interest, with repayment periods of up to 20 years and a minimum 10 per cent equity contribution.

 

He explained that the application process averages between three and six weeks, provided applicants submit the required documentation.

 

Most beneficiaries, he said, are salaried workers in both the public and private sectors, while about five to six per cent are entrepreneurs able to demonstrate stable and verifiable income. He added that women account for more than 30 per cent of mortgage beneficiaries.

 

Usman said MREIF is working with several mortgage institutions, including FHF Mortgage Bank and Family Homes Fund, while exploring partnerships with the Federal Mortgage Bank of Nigeria and the Federal Ministry of Housing to scale access to housing finance.

 

“We are not policymakers. Our role is to mobilise capital and inject it into the housing sector through credible financing structures that developers, lenders and investors can rely on,” he said.

 

Also speaking during the panel, Oluwatosin Abraham, Founder and Chief Executive Officer of Thrift2Landlord, called for stronger collaboration among housing stakeholders and greater inclusion of innovative housing finance models.

 

She said many Nigerians remain excluded from conventional mortgage products despite ongoing reforms and argued that savings-based ownership models can help bridge the affordability gap.

 

Abraham explained that Thrift2Landlord enables subscribers to save towards land ownership over a 10-month period, allowing low- and middle-income earners to gradually acquire property without facing immediate financial pressure.

 

She advised prospective homeowners to buy land in emerging locations before prices rise significantly, pointing to areas such as Kuje and Gwagwalada in the Federal Capital Territory, where infrastructure development is driving rapid appreciation in land values.

 

According to her, participants who begin saving under the scheme are protected from price increases throughout their payment period, helping them manage the effects of inflation.

 

“We want to democratise land ownership so that the average Nigerian is not priced out of the property market,” Abraham said.

 

Goodwill Nwoke, Managing Director and Chief Executive Officer of Pinco Estate Managers, said expanding access to finance for both developers and homebuyers remains critical to addressing Nigeria’s housing deficit.

 

He argued that while formal sector employees have greater access to mortgage financing, policymakers must develop products that also cater to artisans, traders and other informal sector workers.

 

“We cannot talk about housing without talking about financing. The informal worker also needs a home, and mortgage products should be designed to accommodate them,” he said.

 

Offering a different perspective, Bature Ali Mohammed, President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), argued that Nigeria’s biggest challenge is not a shortage of capital but inadequate professionalism and poor investment decisions.

 

He said substantial private capital already exists within the country, but investors often lack access to reliable market intelligence and professional advice, resulting in housing developments that fail to match actual demand.

 

According to him, many developers continue to build luxury homes in locations dominated by low-income households, leaving completed properties vacant because they are unaffordable for the target market.

 

Mohammed emphasised that estate surveyors and valuers possess the market data needed to guide investment decisions, improve property valuation standards and enhance transparency for local and international investors.

 

He urged developers, financiers and government agencies to work more closely with certified professionals to ensure housing investments are directed towards projects that reflect genuine market demand.