The Federal Government, through the Ministry of Finance, has launched a N250 billion Real Estate Investment Fund under the Ministry of Finance Incorporated to tackle Nigeria’s housing finance challenges, promote affordable housing, and drive economic development.
A press statement issued on Tuesday by the Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga, detailed that the initiative was unveiled at a signing ceremony led by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on December 31, 2024, in Abuja.
During the event, Edun outlined the fund’s potential to address housing affordability and accessibility issues.
He explained that the MREIF would provide long-term mortgage solutions with repayment terms of up to 25 years, a significant improvement over the short-term, high-interest loans typically available from commercial banks.
The initiative will roll out in two phases, starting with an initial N150 billion tranche aimed at encouraging private sector involvement, followed by an additional N100 billion in the second phase.
Edun emphasized the alignment of the programme with President Bola Tinubu’s agenda to expand homeownership opportunities, generate employment, and stimulate growth within the housing and construction sectors.
In a statement, the minister remarked, “The Federal Government has taken a significant step towards addressing Nigeria’s Housing Finance Gap with the launch of the Ministry of Finance Incorporated Real Estate Investment Fund, a N250bn initiative designed to provide low-cost, long-term mortgage financing and stimulate economic growth through the housing and construction sectors.
“Presiding over the signing ceremony in his office in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, emphasised that the initiative addresses Nigeria’s housing finance gap by offering mortgages with repayment terms of up to 25 years. This contrasts sharply with the high-interest, short-tenor loans currently offered by commercial banks.
“The first series of the fund, amounting to N150bn, is expected to drive private sector participation, with the second series set to raise an additional N100bn.
The programme aligns with President Bola Tinubu’s vision to foster homeownership, create jobs, and support economic development.
“Described as a public-private partnership, the fund aims to incentivise developers to build affordable homes, thereby creating jobs and increasing commercial activity in the real estate and construction industries.”
Speaking on the fund’s significance, the Managing Director of MOFI, Dr. Armstrong Takang, described it as a groundbreaking initiative addressing the nation’s housing deficit while helping citizens achieve homeownership.
He stated, “The initiative would empower citizens to build generational wealth through accessible mortgage financing.”
