The Ministry of Finance Incorporated (MOFI) has signed a strategic Memorandum of Understanding (MoU) with Shelter Afrique Development Bank to accelerate the delivery of affordable housing in Nigeria through the MOFI Real Estate Investment Fund (MREIF).
This landmark partnership is aimed at addressing Nigeria’s longstanding housing crisis, with an estimated deficit of 17–20 million units, by leveraging local capital and structured financing models that could serve as a blueprint for other African nations.
The MoU was signed on Wednesday in Abuja, marking a formal alignment between two of the continent’s key institutions in the housing and finance sectors.
₦250bn Raised in Two Tranches
MOFI CEO Armstrong Takang announced that MREIF had already raised ₦250 billion through two fully subscribed rounds—₦150 billion in Series 1 and ₦100 billion in Series 2—with strong institutional investor support. The fund, which has received AAA and AA ratings from Agusto and GCR respectively, offers mortgage rates as low as 4% with long repayment tenors, all in local currency.
“This solution allows us to issue mortgages at scale and at affordable rates—critical for addressing Nigeria’s housing deficit,” Takang said. “More importantly, this is locally funded and sustainable.”
MREIF is designed to stimulate both the demand and supply sides of the housing market. On the supply end, developers receive off-take guarantees, enabling them to access construction loans from institutions like Shelter Afrique.
Shelter Afrique to Provide Construction Financing
Shelter Afrique, now a full development bank with 44 member countries, will serve as a critical financing partner in this arrangement. Developers working on affordable housing projects will be able to obtain funds once off-take agreements from MREIF are in place.
“We’re not just signing a document; we are building a bridge between strategic capital and national housing needs,” said Thierno-Habib Hann, Managing Director of Shelter Afrique. “Nigeria’s leadership in this space is pivotal for our broader pan-African vision.”
Hann praised Nigeria’s role as one of Shelter Afrique’s largest shareholders and said the partnership reflects a shared commitment to scaling up housing delivery, attracting investment, and fostering urban development across the continent.
Digital-First, Mortgage-Ready Model Launched
ARM Investment Managers, the fund manager for MREIF, revealed that over 100 mortgages have already been issued, with amounts ranging from ₦50 million to ₦100 million. Seven financial institutions, including Stanbic IBTC, Access Bank, Infinity Mortgage Bank, and AG Mortgage, are currently participating, with more expected to join.
“We’ve built a digital-first model where Nigerians can visit the MREIF portal, browse developer-listed homes, and connect directly with mortgage lenders,” said Kai Orga, ARM Managing Director. “This kind of transparency and ease is new to the Nigerian housing finance space.”
More Than Shelter: A Tool for Economic Growth
Both parties agreed that the initiative goes beyond merely providing shelter.
“Housing creates economic opportunity, boosts productivity, and fosters dignity,” Hann noted. “With strategic collaboration like this, we can reshape Africa’s housing narrative and unlock real socio-economic development.”
