New Year, New housing Market? FG Launches ₦250B Real Estate Investment Fund

The Nigerian Federal Government has introduced the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), a ₦250 billion initiative aimed at addressing the housing finance gap and driving economic progress. Announced through the Ministry of Finance’s official social media platforms, this fund is designed to provide affordable, long-term mortgage financing with repayment periods of up to 25 years, offering an alternative to the high-interest, short-term loans typically available through commercial banks.

During the official launch, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, underscored the fund’s transformative potential. He remarked, “This program addresses the housing finance deficit, invigorates the construction industry, and aligns with President Bola Ahmed Tinubu’s vision to encourage homeownership, create employment, and foster economic growth.”

The MREIF operates under a public-private partnership (PPP) framework and will be rolled out in two phases. The first phase involves ₦150 billion to attract private sector investment, while an additional ₦100 billion will follow in the second phase to expand the initiative. This structure aims to motivate developers to focus on affordable housing projects, thereby stimulating growth in both the real estate and construction industries.

The fund offers numerous advantages, including making homeownership more attainable through long-term, low-cost mortgages. This approach not only helps Nigerians secure homes but also supports the creation of generational wealth. Additionally, it is expected to boost construction activities, generate employment, and encourage private developers to deliver affordable housing solutions. Dr. Armstrong Takang, Managing Director of MOFI, highlighted the broader significance of the fund, stating, “The MREIF empowers Nigerians to achieve sustainable homeownership, which is key to building generational wealth.”

The launch event brought together government representatives, financial institutions, and private sector leaders, signaling widespread support for the initiative. By addressing the housing shortfall and promoting sustainable homeownership, the MREIF is set to transform Nigeria’s housing landscape while contributing to broader economic stability and development.