The Federal Government through its finance ministry, has inaugurated the N250bn Ministry of Finance Incorporated Real Estate Investment Fund aimed at bridging Nigeria’s housing finance gap, fostering affordable housing, and stimulating economic growth.
According to a press statement on Tuesday by the Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga, the initiative was announced at a signing ceremony presided over by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the ministry’s office in Abuja on December 31, 2024.
Speaking at the event, Edun highlighted the fund’s potential to address the challenges of housing affordability and accessibility in Nigeria.
He explained that the MREIF would provide long-term, low-cost mortgage financing with repayment terms of up to 25 years, a stark contrast to the short-tenor, high-interest loans currently available through commercial banks.
The first phase of the fund, amounting to N150bn, will prioritise private sector participation, with a subsequent N100bn to follow in the second phase.
Edun noted that the initiative aligns with President Bola Tinubu’s vision to promote homeownership, create jobs, and spur economic growth through the housing and construction sectors.
The statement read, “The Federal Government has taken a significant step towards addressing Nigeria’s Housing Finance Gap with the launch of the Ministry of Finance Incorporated Real Estate Investment Fund, a N250bn initiative designed to provide low-cost, long-term mortgage financing and stimulate economic growth through the housing and construction sectors.
“Presiding over the signing ceremony in his office in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun emphasised that the initiative addresses Nigeria’s housing finance gap by offering mortgages with repayment terms of up to 25 years. This contrasts sharply with the high-interest, short-tenor loans currently offered by commercial banks.
“The first series of the fund, amounting to N150bn, is expected to drive private sector participation, with the second series set to raise an additional N100bn.
The programme aligns with President Bola Tinubu’s vision to foster homeownership, create jobs, and support economic development.
“Described as a public-private partnership, the fund aims to incentivise developers to build affordable homes, thereby creating jobs and increasing commercial activity in the real estate and construction industries.”
In the statement, the Managing Director of MOFI, Dr Armstrong Takang, described the fund as a transformative step in addressing Nigeria’s housing deficit while enabling Nigerians to achieve sustainable homeownership.
He emphasised that the initiative would empower citizens to build generational wealth through accessible mortgage financing.
