Finance Ministry Secures N100bn To Boost Housing Project

The Ministry of Finance Incorporated (MOFI) has announced that it has raised N100 billion through the MOFI Real Estate Investment Fund (MREIF) to support the financing of affordable housing.

MOFI had earlier, on December 20, 2024, announced  that the N150 billion MREIF series one bond was fully subscribed.

With the N100 billion series 2 offering in February 2025 for private investors, which has now been fully subscribed, the total funding under MREIF is N250 billion.

Providing updates in a statement yesterday, MOFI said it attracted strong private sector participation under the N100 billion issuance tranche.

It stated: “The N100 billion Series 2 offering 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 mobilizing capital into Nigeria’s real estate sector.

“The fund is structured to deliver competitive returns while enabling affordable homeownership through long-term, low-cost mortgage financing at scale.”

Speaking on the development, the Minister of Finance, Wale Edun, said the successful close of the “pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector.”

He added, “The full subscription of the 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.”

On his part,  Managing Director of MOFI, Armstrong Takang, 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.

“This fully subscribed series demonstrates investor confidence in the Fund structure and long-term potential, which MOFI fully supports,” he stated.

Takang  added that with MREIF’s N1 trillion multi-tranche program now underway, future rounds will focus on broadening investor participation and accelerating housing development.

He also said the fund is structured to integrate seamlessly with commercial and mortgage banks, developers, and financial institutions to scale long-term housing finance.