The Ministry of Finance Incorporated (MOFI) has secured N100 billion through the MOFI real estate investment fund (MREIF) to finance affordable housing in the country.
In a statement on Thursday, MOFI said it attracted strong private sector participation under the N100 billion issuance tranche.
On December 20, 2024, MOFI disclosed that it had fully subscribed to the N150 billion MREIF series one.
The agency also launched a N100 billion series 2 offering in February for private investors, bringing the total initial funding under MREIF to N250 billion.
The statement read: “The NGN100 billion Series 2 issuance was fully subscribed, with strong demand across a broad base of institutional investors, thereby depicting high investor confidence in the Fund’s structure and long-term potential.
“Following MOFI’s sole investment in the NGN150 billion Series 1 offer, private sector participation in Series 2 was resounding, positioning MREIF as a leading platform for mobilising capital into Nigeria’s real estate sector.”
MOFI said the fund is structured to deliver competitive returns while enabling affordable homeownership through long-term, low-cost mortgage financing at scale.
Minister of finance and coordinating minister of the economy, Wale Edun, said the successful close of the “pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector.”
“The full subscription of Series 2 offer demonstrates the pent-up demand for a structured, long-term housing finance solution, and affirms the private sector’s confidence in MREIF as a sustainable investment vehicle,” he added.
Also speaking on the development, Armstrong Takang, managing director (MD) of MOFI, said MREIF is designed to address both housing supply and demand constraints.
Takang said the investment gives affordable mortgage financing with up to 20-year repayment tenors at interest rates as low as 12 percent, significantly below commercial rates.
“MREIF is unlocking new investment frontiers in Nigeria’s housing sector,” he said.
“This fully subscribed series demonstrates investor confidence in the Fund structure and long-term potential, which MOFI fully supports.”
The managing director said with MREIF’s N1 trillion multi-tranche programme now underway, future rounds will focus on broadening investor participation and accelerating housing development.
Takang further stated that the fund is structured to integrate seamlessly with commercial and mortgage banks, developers and financial institutions to scale long-term housing finance.
