Mortgage bankers seek partnership with FG on N250bn real estate fund

Mortgage bankers in Nigeria under the aegis of Mortgage Banking Association of Nigeria (MBAN) has offered to partner with the Federal Government on the implementation of the recently launched Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF).

MREIF is a N250 billion initiative aimed to address the housing finance gap and drive economic progress which are the things MBAN said its members were ready to ensure that the benefits reached the targeted Nigerians.

Ebilate Mac-Yoroki and Adedeji Ajadi, president and Executive Secretary of the association respectively, disclosed their desire to partner with the government in a statement in Abuja as a response to the government’s approval of the fund.

“Please, be assured that the member-mortgage banks and mortgage brokerage companies of MBAN are poised to facilitate this process, ensuring that the benefits of this transformative fund drill down to each of those who need it the most.

“This development underscores the importance of public-private collaboration in addressing critical national challenges, such as affordable housing. MBAN remains committed to working closely with the federal government and other stakeholders to achieve sustainable housing solutions for Nigerians,” the president said.

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MBAN lauded the initiative, describing it as a transformative step towards making affordable housing a reality for low- and middle-income earners.

The MREIF, which was approved by the Federal Executive Council (FEC) at its meeting under the chairmanship of President Bola Tinubu, is designed to provide sustainable financing for affordable housing, with a focus on low-cost mortgages.

The initiative blends private sector investments from pension funds and insurance companies with government-provided low-cost seed funding.

“This innovative financing model will provide mortgages at interest rates hovering around single digits, with repayment tenors of up to 20 years,” the statement added.

The association described it as a significant relief for Nigerians who had been burdened by high interest rates and housing affordability challenges.

MBAN hailed President Tinubu and key government officials, including the Minister of Housing and Urban Development, Ahmed Dangiwa, and the Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Osidi, for their leadership in spearheading the initiative.

The association also highlighted the economic ripple effects of the initiative, highlighting its potential to stimulate growth and employment across the mortgage banking, real estate, and construction sectors.

“MBAN encourages all Nigerians to seize this opportunity to fulfill their dreams of homeownership and contribute to narrowing the housing gap,” the statement added.

The fund was unveiled by the Finance Minister and Coordinating Minister of the Economy, Wale Edun, as part of the government’s broader strategy to tackle housing challenges and stimulate economic development.

MBAN described the MREIF as a bold demonstration of political will, underscoring its potential to transform the mortgage sector and improve housing accessibility nationwide.

With the association’s backing, stakeholders hope the fund will bridge the gap between demand and supply in Nigeria’s housing sector.