FG Secures N250 Billion to Solve Nigeria’s Housing Crisis

By Achimi Muktar

In a major move to tackle Nigeria’s housing deficit, the Federal Government’s MOFI Real Estate Investment Fund (MREIF) has successfully secured N250 billion in its pilot fundraising round. This milestone marks the beginning of a N1 trillion multi-tranche housing finance programme aimed at transforming homeownership in the country.

A Game-Changer for Nigeria’s Housing Sector

The Ministry of Finance Incorporated (MOFI), which manages the fund, confirmed that the initial phase attracted strong interest from private sector investors, setting the stage for broader engagement and rapid housing development.

The fundraising was conducted in two tranches:

N150 billion Series 1 – Fully subscribed by MOFI to establish a strong foundation for the programme.

N100 billion Series 2 – Launched in February 2025, attracting significant demand from institutional investors and achieving full subscription.

With top-tier credit ratings (Aaa from Agusto & Co. and AA from GCR Ratings), the fund has gained credibility as a secure and impactful investment vehicle capable of addressing Nigeria’s persistent housing deficit.

How This Will Impact Homeownership

MREIF is designed to tackle both demand and supply challenges in Nigeria’s housing sector:

✅ Affordable Mortgages: Offers homebuyers up to 20 years to repay at interest rates as low as 12%—a significant improvement over prevailing commercial rates.

✅ Boost for Housing Developers: Provides off-take guarantees, unlocking financing for large-scale construction projects and ensuring a steady supply of affordable housing units.

✅ Private Sector Engagement: Institutional investors are now actively backing the fund, showing confidence in its long-term impact.

Government Reacts: “A Pivotal Moment”

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, hailed the fund’s success as a “pivotal step” toward overhauling Nigeria’s housing finance landscape.

“The full subscription of Series 2 reflects a strong appetite for structured, long-term housing finance solutions and affirms investor confidence in MREIF as a sustainable channel for real estate investment.”

MOFI’s Managing Director, Dr. Armstrong Ume Takang, described MREIF as a game-changer, highlighting its potential to revolutionize affordable homeownership in Nigeria.

What’s Next?

Following this successful pilot phase, MOFI is now gearing up for the next rounds of fundraising, with an expanded focus on attracting more private investors.

As the fund scales up, millions of Nigerians could soon have access to affordable, long-term mortgage financing, reshaping the country’s real estate market.