The Ministry of Finance Incorporated (MOFI) has launched a N100 billion subscription under its Real Estate Investment Fund (MREIF), marking the second phase of an initiative aimed at expanding affordable housing finance in Nigeria.
This was disclosed on Monday in a statement by the Managing Director and Chief Executive of MOFI, Armstrong Takang.
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According to the statement, the latest issuance follows the N150 billion Series 1 subscription, which was fully funded by MOFI as the sponsor and anchor investor.
The Series 2 offering is designed to attract private sector participation, increasing total funds raised under MREIF to N250 billion.
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It said the initiative aligns with the government’s broader economic strategy, which includes addressing the country’s estimated 20 million housing deficit.
MREIF seeks to raise N1 trillion through a combination of public and private sector funding.
The fund provides long-term mortgage financing with repayment periods of up to 25 years and targeted interest rates of 11–12 per cent, significantly below prevailing commercial lending rates.
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This structure blends subsidised public funding with market-rate private sector capital to lower borrowing costs for prospective homeowners.
At the launch of the Series 2 subscription, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the government was opening the door for private investors to participate in housing finance.
“The successful completion of Series 1 has demonstrated the government’s commitment to making homeownership more accessible. Now, with Series 2, we are opening the doors for private investors to join this transformative journey, creating jobs, enhancing infrastructure, and strengthening the economy,” he said.
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Mr Takang described the latest issuance as a “critical step” towards unlocking large-scale private capital for the housing market. He said: “By leveraging blended finance, we are establishing a sustainable framework for affordable homeownership that benefits all Nigerians.”
While the first phase of the fund was backed exclusively by MOFI, the second phase is intended to mobilise institutional investors, including pension funds, asset managers, and insurance firms. MOFI has positioned the fund as an avenue for private capital to generate stable, long-term returns while supporting housing development.
The fund’s long-term objective is to stimulate large-scale investment in affordable housing, which government officials argue is a key driver of economic growth, job creation, and improved infrastructure.
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