![Housing Estates used to illustration the story. [Photo credit: The Guardian Nigeria]](https://i0.wp.com/media.premiumtimesng.com/wp-content/files/2018/08/Housing-estate.jpg?fit=1280%2C720&ssl=1)
The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) has raised N250 billion in a pilot fundraising round, attracting strong private sector participation in a move aimed at addressing Nigeria’s chronic housing finance shortfall.
The announcement was made Thursday in a statement signed by Sani Yakubu, executive director (co-ordinator) of the MREIF.
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The fundraising included a N100 billion issuance in the second series, which was fully subscribed by institutional investors.
The demand reflected confidence in the fund’s structure and its potential to support long-term housing development in Africa’s most populous nation.
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The latest fundraising follows the N150 billion Series 1 subscription, which was fully funded by MOFI as the sponsor and anchor investor.
The combined funds raised so far bring MREIF closer to its target of N1 trillion, aimed at expanding access to affordable housing in Nigeria.
The MREIF provides long-term mortgage financing with repayment periods of up to 25 years and interest rates as low as 12 per cent — significantly below commercial lending rates.
It also offers off-take guarantees for developers to encourage greater investment in residential projects.
Wale Edun, Nigeria’s finance minister, described the successful pilot phase as a “long-overdue transformation of Nigeria’s housing sector”.
He said the strong investor participation signalled pent-up demand for structured, long-term housing finance solutions.
“The full subscription of 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,” he said.
Armstrong Ume Takang, managing director of MOFI, said the outcome demonstrated investor confidence in the fund’s structure and long-term potential.
“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 said.
The MREIF’s multi-tranche programme is designed to blend subsidised public funding with market-rate private sector capital to lower borrowing costs for prospective homeowners.
Future rounds are expected to broaden investor participation and accelerate affordable housing development.
