The Federal Government has initiated a direct retail investors’ participation in its N1 trillion housing funding scheme.
The initiative is a move to bridge the housing deficit and develop the domestic mortgage market.
Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun will tomorrow lead the listing of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) at the Nigerian Exchange (NGX).
The MREIF, which targets N1 trillion, has already successfully launched two tranches of N250 billion. The listing on the NGX will allow existing and new investors to trade on the units of the real estate investment trust (reit), while affording the fund opportunity to scale up its size through additional issuances.
MREIF is designed to offer affordable mortgage financing with repayment terms of up to 25 years, featuring substantially lower interest rates than standard commercial rates.
The MREIF is structured to unlock value from Nigeria’s public real estate assets by creating a transparent and market-driven investment platform.
Through its listing on NGX, the fund will expand access to real estate investments, drive sector growth, and contribute to national development objectives while offering investors competitive long-term returns
The Federal Government provided the seed funding, while the private sector has been incentivized to drive the subsequent phases of the project.
Beyond its immediate impact on the housing sector, the listing of the MoFI Real Estate Fund on the NGX carries wider economic implications. It represents a strategic policy shift by the federal government from direct public spending to market-based social investment, where both government and private investors collaborate to finance affordable housing sustainably.
By bringing MREIF into the capital market, the government is providing an avenue for private and institutional investors to participate directly in the real estate financing process. This will mobilize long-term capital, deepen Nigeria’s capital market, and improve liquidity within the housing finance ecosystem.
The listing also enhances transparency and accountability, as MREIF will now be subject to NGX disclosure requirements, including periodic financial reporting and investor oversight. This level of openness is expected to strengthen investor confidence and ensure that funds are efficiently utilized for their intended purpose.
Under the scheme, Nigerian civil servants and other eligible citizens will be able to access mortgage loans with only 10 per cent equity contribution, enjoying single-digit interest rates- a notable shift from the prevailing double-digit rates that have long constrained housing affordability.
The initiative is being executed through a collaborative arrangement involving MoFI, Family Homes Funds Limited (FHFL), and ARM Investment Managers, who serve as the fund managers of the MREIF.
Funding for the programme is structured to ensure both affordability and sustainability. A major component is a credit line secured by FHFL from the African Development Bank (AfDB), which will lower the overall cost of financing and make it possible for mortgage loans to be issued at reduced rates.
Managing Director, Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, described the project as a milestone in the government’s drive to promote affordable homeownership.
He said: “This is about ensuring that Nigerians can own homes at interest rates that make sense. From the beginning, we set a ceiling of 12 per cent on mortgage rates under this fund and we’re committed to pushing that number lower. Today’s agreement with Family Homes Funds allows us to offer mortgages at single-digit rates — below 10 per cent.”
He noted that the strategic focus of the initiative is to continually source cheaper financing from both local and international markets, thereby allowing the benefits of lower-cost funds to be passed on to citizens through reduced mortgage rates.
