The MOFI Real Estate Investment Fund (MREIF) recorded ₦14.24 billion in profit after tax for the first half of 2026, while expanding its mortgage portfolio and supporting thousands of Nigerians seeking homeownership.

For the six months ended June 30, 2026, the fund generated ₦17.48 billion in total income from its investment activities, including income from mortgages and interest earned on cash holdings. It recorded ₦14.49 billion in profit before tax.

The results highlight the growing role of institutional investment funds in addressing Nigeria’s housing-finance challenges.

Mortgage Lending Expands

MREIF’s total assets reached ₦269.9 billion by the end of June.

Of this amount, ₦131.67 billion had been disbursed as mortgage loans, financing 1,909 completed housing units across all six geopolitical zones and 27 states.

The geographical spread is significant because mortgage lending in Nigeria has historically been concentrated in a relatively small number of major urban centres.

MREIF’s model is designed to make longer-term mortgage financing more accessible through participating banks and mortgage institutions. The fund currently works with 22 partner banks and mortgage institutions, according to the report.

Salaried Workers Make Up Majority of Beneficiaries

Salaried workers account for 87.2 per cent of MREIF’s mortgage beneficiaries, while self-employed Nigerians make up 12.8 per cent.

The distribution reflects the importance of predictable income when accessing mortgage finance, but it also highlights an opportunity to expand access among self-employed workers and other Nigerians who may struggle to qualify for conventional mortgages.

MREIF’s mortgage offering is designed around lower-cost, longer-term financing. Its official platform currently advertises mortgages of up to 20 years at a fixed rate of 9.75 per cent per annum.

Developers Also Receive Support

MREIF’s role extends beyond financing homebuyers.

The fund has provided offtake guarantees to three developer projects, supporting 475 housing units currently under construction.

These guarantees can help developers obtain construction financing from financial institutions by providing additional confidence around the eventual purchase of completed housing units.

This is important because increasing housing supply requires financing on both sides of the market. Buyers need affordable mortgages, while developers need access to capital to construct the homes in the first place.

Investors Also Receive Returns

The fund’s performance has also generated returns for investors.

MREIF paid an interim dividend on July 15 to its two categories of investors.

Commercial investors received ₦8.61 per unit, while government-held units received ₦2.80 per unit. Combined, the fund distributed ₦12.82 billion across its 2.5 billion outstanding units.

The results demonstrate the fund’s dual role as an investment vehicle and a housing-finance mechanism.

Profitability Is Not the Only Measure

Despite the strong financial results, mortgage-banking stakeholders have argued that MREIF’s performance should not be judged by profitability alone.

The Mortgage Banking Association of Nigeria (MBAN) recently called for greater emphasis on sustainable housing-finance delivery, noting that MREIF was created to expand affordable mortgage access, mobilise long-term capital and increase homeownership.

MBAN also pointed out that a significant portion of the fund’s assets remains in cash and investment securities rather than mortgage loans.

That creates an important question for the housing sector: how quickly can MREIF convert its available capital into more mortgages and housing projects?

What the Numbers Mean for Nigeria’s Housing Market

MREIF’s first-half performance suggests that structured housing finance can play a larger role in Nigeria’s homeownership market.

The fund has already financed 1,909 completed units and supported another 475 units under construction. But Nigeria’s housing challenge is much larger than the current scale of lending.

The next test is therefore not simply whether MREIF can remain profitable. It is whether the fund can scale mortgage lending, reach more states and income groups, and help developers deliver homes that households can actually afford.

For Nigeria’s housing market, the combination of affordable mortgages and developer financing could become an important part of closing the gap between housing demand and actual home delivery.

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The Federal Government has introduced new measures aimed at making homeownership more attainable for Nigerians, with the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) announcing a reduction of its mortgage equity contribution requirement from 20 per cent to 10 per cent.

The move, which follows an earlier cut in interest rates from 12 per cent to 9.75 per cent, applies to MREIF’s long-term mortgage products with repayment periods of up to 20 years. The initiative is designed to ease access to housing for middle- and lower-income earners while addressing the country’s persistent housing deficit.

Chief Executive Officer of the Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, described the development as a “transformative step” toward breaking one of the major barriers to homeownership.

“I am excited to share that the Equity Contribution for homeseekers under the MREIF has now been reduced to 10 per cent, from the initial 20 per cent, for all applicants,” Takang announced via his official LinkedIn handle. “This follows our recent reduction of the interest rate from 12 per cent to 9.75 per cent. Our goal is to turn the dream of owning a home into reality for as many Nigerians as possible.”

According to Takang, the revised terms form part of the Federal Government’s Renewed Hope agenda, which prioritises affordable housing as a cornerstone of social and economic development. “By reducing the down payment and maintaining our low interest rate, we are opening the door to a brighter, more secure future for families across the nation,” he said.

The scheme also offers applicants the option to use funds from their Retirement Savings Account (RSA) for their down payment, a provision aimed at enhancing flexibility and participation, especially among those in formal employment.

Takang assured prospective homeowners of MOFI’s continued dedication to delivering tangible results. “We are committed to expanding access to decent housing and aligning our efforts with the President’s vision for affordable homes for Nigerians,” he said.

The MREIF’s work has not gone unnoticed, as it recently received the Innovative FG Mortgage Intervention Award at the 2025 Africa International Housing Show (AIHS). Takang said the recognition would further drive the team’s commitment. “This award inspires us to do more, fully aware of the scale of the task and the potential impact on citizens’ lives,” he noted.

The revised mortgage terms are expected to stimulate wider participation in the housing market, boosting demand in both the affordable and mid-tier property segments while supporting the government’s goal of inclusive economic growth.

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This marks another milestone in the country’s ongoing efforts to bridge the housing deficit and make homeownership accessible to more Nigerians.

The journey to this funding boost began in December 2024, when MOFI announced that the N150 billion MREIF Series 1 bond was fully subscribed. Building on that success, a second offering in February 2025, targeting private investors, has also been fully subscribed. This brings the total funds raised under MREIF to an impressive N250 billion. The strong investor participation reflects a growing commitment from the private sector to support real estate development.

MOFI, in a statement, emphasized the high level of private sector participation in the N100 billion issuance. It noted that the fund attracted a diverse group of institutional investors. The overwhelming demand for the Series 2 offering signals strong investor confidence in the fund’s structure and long-term potential. Unlike previous housing initiatives, MREIF is structured to deliver competitive returns while ensuring affordable homeownership through long-term, low-cost mortgage financing.

Government Endorsement and Future Impact

Minister of Finance, Wale Edun, hailed the success of the Series 2 tranche, calling it the beginning of a long-overdue transformation in the housing sector. He stated that the full subscription of the Series 2 offering demonstrates the private sector’s trust in MREIF as a viable and sustainable investment vehicle. He further emphasized that the initiative is addressing one of the biggest challenges in the country—access to affordable housing finance.

Managing Director of MOFI, Armstrong Takang, reinforced the fund’s significance. He explained that MREIF is uniquely structured to tackle both supply and demand issues in the housing market. The financing structure provides affordable mortgage options with up to 20-year repayment tenors at interest rates as low as 12 percent. This is far below typical commercial rates, making homeownership more accessible for Nigerians.

Takang also noted that the MREIF’s N1 trillion multi-tranche programme is just getting started. Future rounds will focus on expanding investor participation and accelerating housing development. The initiative will also integrate seamlessly with commercial banks, mortgage providers, developers, and financial institutions.

A New Era for Nigeria’s Housing Sector

With the success of this latest offering, MREIF is laying the foundation for a new era in Nigeria’s real estate sector. If these investments continue to gain traction, the dream of widespread affordable homeownership in Nigeria may soon become a reality. The strong investor confidence and the government’s commitment to long-term housing solutions signal a brighter future for millions of Nigerians seeking secure and affordable housing.

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