The MOFI Real Estate Fund (MREIF) initiative, with an ambitious target of N1 trillion in financing, aims to unlock affordable homeownership for millions of Nigerians. The fund offers long-term mortgage financing at competitive interest rates (between 11% and 12%) – significantly lower than commercial rates – and seeks to make homeownership a reality for those who have long been excluded from the market.
“This landmark initiative demonstrates the government’s commitment to making homeownership more accessible,” emphasised Wale Edun, Minister of Finance and Coordinating Minister of the Economy, during the launch in Abuja. “With Series 2, we are inviting the private sector to join us in this transformative journey, creating jobs, enhancing infrastructure, and strengthening the Nigerian economy.”
Unlike Series 1, which the government primarily funded, Series 2 actively seeks private sector participation. By partnering with fund managers, advisers, and issuing houses, MOFI aims to mobilise N100 billion from institutional investors through capital market channels, solidifying its commitment to public-private partnerships.
“Series 2 marks a critical step toward unlocking private capital at scale for Nigeria’s housing market,” stated Armstrong Takang, MD/CEO of MOFI. “By leveraging blended finance, we are creating a sustainable framework for affordable homeownership that benefits all Nigerians.”
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MOFI will not directly build houses or issue mortgages. Instead, its role is to create a secure and attractive investment environment for private capital to flow into the housing sector. This approach will significantly accelerate the pace of housing development and address the immense housing deficit, which experts currently estimate at over 20 million units.
“This initiative is a landmark achievement in Nigeria’s housing sector,” affirmed Shamsuddeen Usman, Chairman of the MOFI board. “The Renewed Hope Agenda is focused on delivering sustainable homeownership opportunities for Nigerians, and MREIF is a major driver of this vision.”
The impact of this initiative extends beyond simply providing homes. Stimulating investment in the real estate sector has the potential to create a ripple effect throughout the economy, generating jobs, boosting local economies, and improving the overall quality of life for Nigerians.
“We are bringing the capital market to help drive Nigeria’s development,” noted Agama Emomotimi, Director-General of the Securities and Exchange Commission (SEC). This sentiment underscores the importance of this initiative in fostering financial inclusion and promoting economic growth.
As MOFI progresses with Series 2 and strives to achieve its N1 trillion target, the Nigerian housing landscape stands poised for a significant transformation. This initiative offers a beacon of hope for millions of Nigerians who aspire to own their homes while simultaneously driving economic growth and enhancing the nation’s overall development.
