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The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) has successfully closed its N250 billion pilot fundraising, marking a major step towards bridging the country’s housing finance gap.
The N100 billion Series 2 issuance was fully subscribed, reflecting strong demand from institutional investors and affirming market confidence in the fund’s structure and long-term potential.
This achievement follows MOFI’s initial N150 billion investment in Series 1, with the Series 2 offer attracting robust private sector participation.
This shift underscores the private sector’s readiness to invest in structured housing finance solutions, providing affordable homeownership opportunities to Nigerians.
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With an Aaa rating from Agusto and an AA rating from Global Credit Rating, MREIF has established itself as a credible investment platform.
The fund is structured to deliver competitive returns while enabling affordable homeownership through long-term, low-cost mortgage financing at scale.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, stated that the successful close of this pilot phase marks the beginning of a long-overdue transformation in Nigeria’s housing sector, according to a statement from MOFI.
Edun noted that the full subscription of Series 2 demonstrates pent-up demand for structured housing finance solutions and investor confidence in MREIF as a sustainable investment vehicle.
MREIF is designed to address both supply and demand constraints in the housing market.
It offers affordable mortgage financing with repayment tenors of up to 20 years at interest rates as low as 12%, significantly below commercial rates.
Additionally, the fund provides off-take guarantees for developers, unlocking financing for large-scale housing projects.
Armstrong Ume Takang, MD/CEO of MOFI, highlighted that 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,” Takang stated.
With MREIF’s N1 trillion multi-tranche program now underway, future rounds will focus on expanding private sector participation and accelerating housing development.
The fund is designed to integrate with commercial banks, mortgage providers, developers, and financial institutions to strengthen long-term housing finance.
Investor engagement opportunities are now open, with institutional partners encouraged to explore participation in upcoming rounds.
MREIF is a Securities and Exchange Commission (SEC)-approved and regulated fund designed to expand homeownership and strengthen Nigeria’s housing sector.
It’s aim is to make affordable housing more accessible to Nigerians while supporting economic growth by bringing together public and private sector capital.
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The successful capital raising positions the fund as a key driver of investment in long-term housing finance, addressing Nigeria’s estimated 20 million housing deficit.
This initiative aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which emphasizes holistic national development through targeted interventions in critical sectors.
MREIF’s focus on affordable mortgage financing and developer support is expected to enhance access to decent and affordable housing for millions of Nigerians.
In the broader context, its success reflects a growing trend of public-private partnerships in Nigeria, aimed at addressing systemic challenges through innovative financial models.
Looking ahead, the next phase will focus on expanding its reach and impact.
