More than 700 Nigerians have become homeowners in just six months, thanks to landmark mortgage reforms championed by the Federal Government through the Ministry of Finance Incorporated (“MOFI”).
This milestone marks a turning point in Nigeria’s housing sector, which has long been plagued by high interest rates, limited financing, slow mortgage processing and a deficit of over 28 million homes.
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At the heart of this transformation is the MOFI Real Estate Investment Fund (“MREIF”), a Securities and Exchange Commission (“SEC”) registered ₦1 trillion fund created to provide long-term, affordable mortgages for ordinary Nigerians at scale.
With interest rates slashed to 9.75% per annum and repayment periods of up to 20 years, the initiative is intended to make at least 12,000 Nigerians homeowners at full utilization of the programme with more Nigerians positioned to benefit through plans to refinance by the Nigerian Mortgage Refinancing Company.
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For decades, millions of Nigerians have been trapped in a cycle of rent payments, often described as “funding their landlord’s retirement.” The lack of affordable mortgage options made saving for a home nearly impossible. Now with MREIF, homebuyers can secure a loan to purchasetheir dream home within a few weeks.
Since its inception, MREIF has disbursed funds for more than 700 homebuyers through 11 Eligible Financial Institutions across 5 regions of the country.
The Eligible Financial Institutions are financial institutions licensed by the Central Bank of Nigeria to originate mortgages andpreapproved by MREIF for participation in the schemeand they include Abbey Mortgage Bank, Access Bank, AG Mortgage Bank, FCMB, FHA Mortgage Bank, Gateway Mortgage Bank, Globus Bank, Homebase Mortgage Bank, Imperial Homes Mortgage Bank, Infinity Trust Mortgage Bank, Living Trust Mortgage Bank,Nigeria Police Mortgage Bank, Providus Bank, Stanbic IBTC, and Union Bank.
Each of these mortgages secured so far represents a family moving from rent into ownership, building equity, stability, and generational wealth. What sets MREIF apart is the scale of funding, government backing, swift processing timelines and transparent structure, ensuring mortgages are not only affordable but also sustainable and accessible nationwide.
This initiative is not just about mortgages; it is about economic empowerment. The Federal Government, through the MOFI, committed an initial ₦150 billion under Series 1 funding, fully subscribed in December 2024, while private sector investors also committed another ₦100 billion under Series 2 funding.
Additional tranches could scale up to ₦1 trillion, ensuring long-term sustainability.
By anchoring the fund in public–private collaboration, the government ensures both affordability and scale through the provision of concessionary funding. While ARM Investment Managers professionally manages the fund to ensure efficiency.
Speaking on the initiative and its growing impact, Wale Odutola, CEO of ARM HoldCo, said: “MREIF embodies the kind of partnership Nigeria has long needed, government resolve combined with private sector rigour. Together with MOFI, we are laying the structural foundation for a housing sector that rewards citizens, unlocks investor confidence, and drives inclusive growth.”
The ripple effect of MREIF extends beyond individual mortgages. By offering developers offtake guarantees, the fund encourages new construction projects, creates jobs, and fuels the housing supply chain. Nigerians in the diaspora now have a transparent, government-backed platform to channel their investments into secure homeownership.
This dual focus on supply and demand is designed to strengthen Nigeria’s housing ecosystem, ensuring that reforms benefit not just today’s homeowners but also future generations.
Challenges remain, including inflation, forex pressures, and high construction costs. Yet MREIF’s long-term, affordable financing structure is designed to withstand these shocks. As more financial institutions, pension funds, and developers join the initiative, the fund expects to enable thousands more Nigerians, at home and abroad, to become homeowners.
The message is clear: the era of affordable homeownership has arrived in Nigeria. With Federal Government backing and private sector management, MREIF is not just a housing scheme; it is a national economic reform with the potential to reshape lives and communities across the country.
About MREIF
The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is a Federal Government–backed initiative introduced under President Bola Tinubu’s administration, with strategic direction from the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun.
Sponsored by MOFI and managed by ARM Investment Managers, MREIF provides affordable, long-term mortgage financing and offtake guarantees to expand housing access, support developers, create jobs, and strengthen Nigeria’s housing market. The MREIF recently reduced its interest rate from a fixed 12% to 9.75% per annum, making homeownership more accessible in Nigeria.
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