On Monday, the Federal Government announced that individual investors can take part in the ₦1 Trillion housing initiative. Officials stated this decision will help more Nigerians buy homes and improve the mortgage sector.
This initiative is called the Ministry of Finance Real Estate Investment Fund (MREIF). It will list shares on the Nigerian Exchange, letting regular investors buy and sell units in the fund alongside institutional investors. Officials believe this listing will attract long-term private investments in construction and make mortgages more affordable and accessible for longer periods for buyers.
MREIF has already secured initial capital from previous funding rounds. The organizers hope to reach ₦1 Trillion by combining public and private funding. The ministry supported the initial phases and attracted interest from pension funds and asset management firms.
The scheme will provide mortgages through approved banks and mortgage companies, with repayment terms lasting up to 20 to 25 years. The program also aims to offer interest rates significantly lower than standard commercial loans. Officials have set ceilings of about 11 to 12% and hope to reduce rates to single digits when possible. The fund will also help civil servants and eligible Nigerians access loans with minimal equity contributions.
