Nigeria’s MOFI launches N100bn fund to bridge housing gap

The Ministry of Finance Incorporated (MOFI) on Monday launched a N100 billion Series 2 offering under its Real Estate Investment Fund, in a significant step towards bridging Nigeria’s housing deficit put at over 20 million.

This second phase follows the successful launch of N150 billion Series 1 funding late last year and brings the total amount under the fund to N250 billion.

MOFI Real Estate Fund (MREIF) initiative seeks up to N1 trillion in financing to transform Nigeria’s housing sector and expand homeownership through cheap, long-term funding.

The fund offers affordable mortgage financing with repayment terms of up to 25 years, featuring interest rates between 11 percent and 12 percent, which are substantially lower than standard commercial rates.

During the launch in Abuja, Wale Edun, minister of Finance and Coordinating Minister of the Economy, highlighted that this landmark initiative successfully attracts private sector involvement to grow Nigeria’s housing sector and aligns with President Tinubu’s Renewed Hope Agenda.

Unlike Series 1, which was fully subscribed by MOFI as both sponsor and anchor investor, Series 2 is structured to draw in private sector involvement through partnerships with fund managers, advisers, and issuing houses.

“The successful completion of Series 1 has demonstrated the government’s commitment to making homeownership more accessible,” he said.

“With Series 2, we are opening the doors for private investors to join this transformative journey, creating jobs, enhancing infrastructure, and strengthening the economy.”

MOFI aims to mobilise N100 billion from institutional investors through capital market channels, solidifying its commitment to fostering public-private partnerships that expand housing finance and drive economic development.

Reaffirming the fund’s long-term vision, Armstrong Takang, MD/CEO of MOFI, stated: “Series 2 marks a critical step toward unlocking private capital at scale for Nigeria’s housing market.”

He noted that “by leveraging blended finance, we are creating a sustainable framework for affordable homeownership that benefits all Nigerians.”

He stated that once the funding is actualised, MOFI will start issuing mortgages through eligible financial institutions by the end of the month.

He clarified that MOFI will neither build houses, nor issue direct mortgages.

Its role is rather to develop an instrument that makes investors feel secure in investing more resources into the housing sector, thereby assisting the government in addressing the significant housing deficit.

Shamsuddeen Usman, chairman, MOFI board, described the initiative as “a landmark achievement in Nigeria’s housing sector,” noting that the Renewed Hope Agenda is focused on delivering sustainable homeownership opportunities for Nigerians, and MREIF is a major driver of this vision.

“I would like to assure people that this is the beginning of the kind of big things that will be coming from MOFI as transformative initiatives for the Nigerian economy,” Usman said.

Some of the fund’s partners noted that achieving the N1 trillion target will continue to stimulate investments, transforming Nigeria’s housing landscape and enhancing the lives of millions.

Agama Emomotimi, director-general, Securities and Exchange Commission (SEC), said such initiatives help to drive financial inclusion while also adhering to international best practices.

“We are bringing capital market to help drive Nigeria’s development,” he noted.