By Anita Dennis
The flagship housing finance vehicle of the Ministry of Finance Incorporated (MOFI) known as MoFI Real Estate Investment Fund (MREIF) has delivered a notable income signal to investors, with ARM Investment Managers Limited declaring cash distributions for the second half of 2025 that sharply differentiate returns across the fund’s two series.
According to a corporate actions notice filed with the Nigerian Exchange (NGX) on February 19, 2026, ARM, the fund manager, proposed a dividend of N3.7468 per unit for Series I investors and a significantly higher N9.7192 per unit for Series II investors for the period ended December 31, 2025.
The payout structure reinforces the deliberate design of the MREIF platform. While Series I offers a more conservative income profile, Series II has emerged as the higher-yield tranche, with investors earning nearly three times the Series I distribution. Market analysts interpret the wide differential as consistent with the fund’s tiered risk-return architecture rather than a performance anomaly.
From the policy standpoint, the development offers early validation for MOFI’s broader asset optimisation strategy. MREIF was conceived as a market-facing instrument to deepen housing finance, crowd in private capital, and unlock value from federally owned real estate assets. The latest distribution suggests the income engine underpinning the fund is beginning to show measurable output.
ARM Investment Managers, in its filing, confirmed that investors whose names appeared on the register at the close of business on February 19, 2026, will qualify for the dividend. The qualification date is February 20, while the register of unit holders will close from February 23. Payments are scheduled for February 27, subject to withholding tax and regulatory approvals.
The manager also reiterated the requirement for electronic dividend mandates, noting that payments will be made only to investors who have completed the e-dividend process. The push toward full electronic settlement aligns with ongoing capital market reforms aimed at reducing unclaimed dividends and improving distribution efficiency.
Africa Prudential Plc will act as registrar, managing investor records and processing the payments.
Yet the dividend declaration comes against a mixed secondary market backdrop. Since listing on the NGX in November 2025, MoFIREIT has recorded relatively thin trading activity. The fund has posted a cumulative traded volume of 87,664 units in 64 deals valued at N9.63 million over more than three months, with an average of about 1,391 units per trading session.
Its most active session, roughly 25,000 units traded on November 24, occurred shortly after listing. Since then, liquidity has remained muted, placing the fund among the least traded securities on the exchange.
This context makes the current payout strategically important for both MOFI and ARM. For real estate investment vehicles, predictable income streams often serve as the primary investor hook, particularly in early market development phases when trading depth is still forming.
The N1 trillion Series II tranche of MREIF was listed on November 11, 2025, as a cornerstone initiative under MOFI’s balance sheet optimisation programme. With one billion units priced at N100 each at listing, the fund was positioned to mobilise long-term capital into Nigeria’s housing ecosystem while offering investors structured exposure to government-backed real estate assets.
The stronger income showing from Series II now provides the first substantive performance marker for the platform.
Going forward, the central test for MOFI, ARM, and the broader MREIF architecture will be whether sustained distributions can translate into deeper market participation. If yield visibility continues to strengthen, the fund could gradually shift from a quiet listing to an income-driven instrument capable of attracting a wider pool of institutional and retail investors.
For now, the H2 2025 dividend declaration marks an important early proof point in the government’s evolving real estate capital market strategy.
