By Jennete Ugo Anya
The Ministry of Finance Incorporated (MOFI) has kicked off the delivery of affordable housing under its single-digit mortgage initiative – a bold move aimed at reshaping Nigeria’s housing sector and breaking down long-standing barriers to homeownership.
The initiative, known as the MOFI Real Estate Investment Fund (MREIF), is already yielding results, with beneficiaries now receiving keys to their new homes. At the just-concluded Africa International Housing Show (AIHS) in Abuja, Dr. Armstrong Takang, Managing Director of MOFI, revealed that the programme offers Nigerians mortgage access at a highly competitive rate of 9.75 percent – the lowest currently available in the country.
“This is more than a financial product. It is a lifeline to many Nigerians who have been locked out of the housing market for too long,” Dr. Takang said.
He also announced a Sharia-compliant version of the product for non-interest borrowers, signaling MOFI’s commitment to financial inclusivity. According to him, MREIF is not just about homes – it is about economic participation, equity, and national development.
Nigeria’s housing sector has long been stifled by a combination of high mortgage rates, short loan tenors, limited refinancing options, and weak secondary markets. Dr. Takang cited an estimated 20 million-unit housing deficit, calling it “a national emergency” that demands creative thinking and sustainable action.
MREIF, a N1 trillion Securities and Exchange Commission (SEC)-regulated fund, has emerged as that action.
Structured as a Public-Private Partnership (PPP), the fund brings together leading players in finance, law, engineering, and property management to deliver durable solutions. While MOFI serves as the sponsor, MREIF is operated independently by market institutions with strict corporate governance protocols. The fund has already received a AAA rating from Agusto and an AA rating from Global Credit Rating (GCR), underlining its strength and credibility in the financial market.
With N250 billion already raised, MREIF has begun disbursing mortgage finance across three of Nigeria’s six geopolitical zones. The structure allows developers to access off-take guarantees, making it easier to plan, build, and sell homes – while giving qualified Nigerians affordable mortgage plans over 20 years.
“The liquidity problems are being addressed. The lack of refinancing options is being tackled. We are not building castles in the air – this is a grounded, bankable model,” Dr. Takang said.
He commended President Bola Ahmed Tinubu’s Renewed Hope Housing Initiative as the spark that ignited the fund’s vision and credited private sector partners for ensuring execution stayed on course.
Key collaborators on the project include ARM as Fund Manager, VETIVA as Financial Advisor, Olaniwun Ajayi as Solicitors, Diya Fatemilehin as Technical Advisor, and First Bank of Nigeria as Custodian. STL Trustees and TSL Engineering also play critical roles.
With a design focused on transparency, long-term impact, and real financial inclusion, MREIF is more than a housing project – it is a rethink of what is possible when government policy meets disciplined private sector execution.
As Dr. Takang concluded: “This is not a pilot. This is a movement – and we are just getting started.”
