The Federal Government has signed a Memorandum of Understanding with Shelter Afrique Development Bank to strengthen Nigeria’s housing sector through the expansion of the MOFI Real Estate Investment Fund.
The agreement, which was signed in Abuja, aims to address the country’s housing deficit by mobilising structured, locally sourced financing and unlocking new opportunities for developers and prospective homeowners.
The Chief Executive Officer of the Ministry of Finance Incorporated, Dr Armstrong Takang, described the partnership as a milestone in efforts to deliver large-scale, affordable housing using indigenous solutions.
Takang said the MREIF programme, backed by President Bola Tinubu, is targeting a N1tn fundraising goal to be implemented in tranches.
According to him, the fund has already raised N150bn in Series 1 and N100bn in Series 2, with disbursements already ongoing.
“This is not just in words—this is action,” he said. “The mortgages have already started, and we will be going back to the market. Even N1tn is a drop in the ocean when you think about the housing deficit, but it is a good and symbolic start.”
He stated that the mortgages under the scheme are being issued in naira, reducing currency risk and allowing longer tenures of up to 25 years, with low interest rates.
According to Takang, MREIF’s design tackles both the demand and supply sides of the housing market.
While affordable mortgages are issued directly to applicants, the fund also provides off-take guarantees to developers targeting MREIF subscribers.
“These guarantees allow developers to approach financial institutions to raise the construction financing they need,” he said. “That’s where Shelter Afrique comes in. They don’t issue mortgages—they provide the construction capital once off-take guarantees are in place.”
He described the agreement with Shelter Afrique as a “perfect alignment” between both parties, aimed at driving supply and demand simultaneously. “Together, we are co-travellers in the journey to house not just Nigeria, but the continent.”
Speaking at the event, Shelter Afrique’s Managing Director, Thierno-Habib Hann, described the partnership as strategic and timely.
“This partnership is not just symbolic. It’s a strategic alignment between institutions with a shared vision for Africa’s housing future,” Hann said.
He stated that Nigeria holds a central place in Shelter Afrique’s housing agenda, noting that the country is one of the two largest shareholders in the development bank.
According to him, the Nigerian market offers both scale and dynamism to drive housing innovation across Africa.
“Together, we are committed to delivering impactful projects and innovative financing models that will improve the investment attractiveness of the housing sector,” he added.
Hann further noted that Shelter Afrique, with operations across 44 African member states, brings a wealth of experience in structuring housing ecosystems into bankable projects.
Both parties expressed confidence that the success of the MREIF framework in Nigeria could serve as a model for other African countries as they work toward building inclusive, dignified, and sustainable housing solutions.
The MOFI-Shelter Afrique agreement is expected to open up further investment rounds under the MREIF programme, with the fund continuing to mobilise capital and partner with developers and institutions to deliver affordable housing across Nigeria.
