MOFI Turns to Capital Market to Expand Affordable Housing Finance

The Ministry of Finance Incorporated is strengthening efforts to mobilise capital-market funding for large-scale housing projects and affordable mortgages across Nigeria.

MOFI Managing Director and Chief Executive Officer, Dr Armstrong Takang, said the approach would be implemented through the MOFI Real Estate Investment Fund, a major financing component of the Federal Government’s One Million Homes Presidential Initiative.

Takang disclosed the plan during a visit by senior members of the Housing Development Advocacy Network to MOFI’s office in Abuja.

He explained that MREIF was designed as a market-driven platform capable of attracting pension funds and other institutional capital into Nigeria’s housing sector.

The initiative is expected to provide long-term funding for housing projects while expanding access to affordable mortgages, particularly for workers and contributors to the pension system.

According to Takang, transparency and market efficiency will guide the fund’s operations, helping to strengthen Nigeria’s mortgage market and create more sustainable routes to homeownership.

The Federal Government engaged professionals from the pension, investment and financial sectors to support the fund’s governance and deployment.

Those involved include the Accountant-General of the Federation, Dr Oluwatoyin Madein; Wale Odutola of ARM Pensions; Funmi Ekundayo of STC Trustees; and Saadu Jijji of PAL Pensions.

Their experience covers pension management, trusteeship, investment advisory services, fund management and real estate financing.

MOFI also plans to work closely with the Federal Mortgage Bank of Nigeria, Family Homes Funds Limited and Primary Mortgage Banks to increase the reach of housing finance.

Support for mortgage institutions is expected to improve their operational capacity and help them respond to the growing demand for long-term home loans.

MREIF currently offers qualifying homebuyers mortgages with repayment periods of up to 20 years at a fixed annual interest rate of 9.75 per cent and a minimum equity contribution of 10 per cent.

By June 2026, the fund had reportedly provided ₦128 billion in mortgages to 1,859 families across 25 states.

It had also unlocked approximately ₦221 billion in property value and supported the delivery of 475 housing units through offtake-guarantee projects.

The commercial tranche of the fund has been listed on the Nigerian Exchange, creating a platform through which private and institutional investors can participate in housing finance.

Reacting to the initiative, HDAN welcomed the Federal Government’s ₦250 billion commitment to housing and described the decision to access the capital market as an important step towards addressing Nigeria’s longstanding financing challenges.

The organisation, however, advised MOFI to learn from previous federal housing programmes and work with qualified professionals and developers with verifiable records of successful project delivery.

HDAN Executive Director, Festus Adebayo, called on credible estate developers to support the One Million Homes initiative and contribute to the expansion of affordable housing.

Former Chairman of the Federal Government’s Reform Committee on Land, Dr Ugochukwu Chime, identified weak land-titling systems as a major obstacle that could limit access to housing finance.

He urged MOFI and other government institutions to support reforms that would make property titles easier to obtain, verify and use as security for mortgages and construction loans.

Another housing stakeholder, Emmanuel Akinwumi, called for a review of outdated housing and mortgage laws that continue to constrain the sector’s performance.

Mobilising money from the capital market could reduce dependence on short-term government funding and commercial bank loans. Its success will, however, depend on transparent fund management, credible project selection, secure land titles and the delivery of homes within the income range of intended beneficiaries.

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The Federal Government’s push to accelerate housing delivery and urban renewal is facing mounting pressure from limited budgetary allocations, with the Minister of Housing and Urban Development, Ahmed Musa Dangiwa, admitting that funding constraints are slowing the pace of reform implementation across the country.

Speaking during a high-level engagement with officials from UN-Habitat in Abuja, the minister acknowledged that while the Ministry has articulated a clear policy direction and ambitious targets, inadequate financial resources are restricting large-scale execution, particularly in climate-responsive housing and urban resilience initiatives.

Dangiwa noted that the fiscal limitations have compelled the Ministry to rethink its financing model and explore alternative funding mechanisms beyond traditional budgetary allocations. According to him, innovative financing structures will be critical to meeting Nigeria’s growing demand for affordable housing and sustainable urban infrastructure.

He explained that Nigeria’s rapid urbanisation trend requires coordinated planning, resilient infrastructure, and long-term investment in climate-smart development. However, without expanded funding channels, scaling reforms in housing delivery, slum upgrading, and land administration will remain challenging.

The minister commended the European Union-funded Sustainable Integrated Development Programme for Internally Displaced Persons in Nigeria (SIDPIN), describing it as a model intervention that aligns with the Ministry’s broader housing and social cohesion objectives. The programme is currently being implemented with support from UN-Habitat in Adamawa, Kano, and Borno states.

According to Dangiwa, SIDPIN has delivered durable housing solutions, strengthened community integration, and improved living conditions for internally displaced persons (IDPs) and host communities. He emphasized that such initiatives are crucial in rebuilding livelihoods and stabilising post-conflict regions.

Beyond housing construction, the minister highlighted the programme’s support in reviewing Nigeria’s National Urban Development Policy, contributing to planning reforms, and offering technical assistance for the National Land Registration Documentation and Titling Programme, also known as Land4Growth. He added that these interventions support urban renewal and slum upgrading efforts across major cities.

“These interventions are vital as Nigeria confronts rapid urbanisation that demands coordinated planning, sustainable infrastructure, and climate-responsive development,” Dangiwa said.

However, he admitted that meeting obligations under the existing Memorandum of Understanding with UN-Habitat presents its own set of financial and administrative challenges. While the Ministry values the partnership, he stressed that predictable funding remains essential to sustaining long-term collaboration and achieving tangible outcomes.

Earlier in his remarks, Mathias Spaliviero, Head of the UN-Habitat West Africa Hub in Dakar, reaffirmed the agency’s commitment to its institutional partnership with the Federal Government of Nigeria. He maintained that collaboration would remain a priority regardless of funding cycles.

Spaliviero provided updates on ongoing interventions, including a major joint programme being implemented alongside the International Organization for Migration and the United Nations High Commissioner for Refugees. The initiative focuses on delivering sustainable and durable solutions for internally displaced persons through structured urban integration strategies across Kano, Yobe, Adamawa, and Benue states.

He explained that the programme adopts a multi-scale planning approach, integrating housing provision with infrastructure development, livelihood support, and governance reforms. According to him, state governments are increasingly demonstrating ownership and responsiveness, a development he described as encouraging for long-term sustainability.

Nigeria’s housing deficit, estimated in millions of units, continues to place pressure on federal and state authorities to accelerate reforms. Analysts argue that budgetary shortfalls, rising construction costs, and limited access to long-term financing remain key obstacles to scaling affordable housing projects nationwide.

The Ministry’s renewed focus on alternative financing options could include public-private partnerships, blended finance models, housing bonds, and multilateral development support. Industry experts say that unlocking private capital will be essential to bridging funding gaps and achieving inclusive urban growth.

Urban planners also stress the importance of land reform and digitised titling systems in attracting investment. Improved land administration under initiatives like Land4Growth could help streamline property registration, reduce disputes, and enhance investor confidence in the real estate sector.

As Nigeria’s urban population continues to expand, the urgency of climate-smart housing solutions is becoming more pronounced. Flood resilience, energy efficiency, and sustainable building materials are increasingly central to housing policy discussions.

Despite fiscal headwinds, Dangiwa expressed optimism that deeper collaboration with international development partners will help accelerate affordable housing delivery and support the development of resilient, inclusive cities.

The post Dangiwa Flags Budget Constraints Slowing Affordable Housing Delivery appeared first on Housing TV Africa.

Over 1,000 of Nigeria’s most influential real estate stakeholders convened on September 16, 2025, at Harbour Point, Victoria Island, Lagos, for the Real Estate Stakeholders’ Forum (RESF) 2025, a high-level summit aimed at addressing the country’s most urgent housing and investment challenges.

The forum brought together top developers, investors, financial institutions, policymakers, and professionals for a full day of strategic dialogue on the future of real estate in Nigeria.

Notable key areas of focus included affordable housing, land use reform, modular housing innovation, and bridging financing gaps.

Among the notable attendees were Dr. Tony Kolawole, Chairman of REDAN Lagos; Dr. Kunle Adeyemi, Vice President, REDAN South West; Professor Timothy Nubi, Barr. Festus Adebayo, Founder/Chairman, Housing TV Africa, Director, Centre for Housing and Sustainable Development at the University of Lagos; Barr. Labake Adetunmbi, Legal Adviser, REDAN Lagos; and Osagie Alfred, Secretary-General, FIABCI Lagos Chapter.

A major outcome of the forum was the unanimous endorsement of the Real Estate Developers Association of Nigeria (REDAN) to represent stakeholder interests through a jointly authored communiqué to be submitted to the government.

The document outlined critical sectoral demands, including streamlining land titling processes, eliminating multiple taxation, accelerating housing reforms, and unlocking investment opportunities to support sustainable urban development.

Barr. Festus Adebayo highlighted the urgency of the crisis, stating, “The critical problem facing us today is housing affordability.” He also called for higher standards in the industry, adding, “We need to professionalize real estate development.”

Delivering the keynote address, Professor Timothy Nubi noted the importance of partnerships between the public and private sectors.

“Collaboration between the government and real estate developers is essential for unlocking Lagos’ full potential. No entity can thrive in isolation; partnership is key to successful urban development,” he said.

The event concluded on a note of cautious optimism, with participants reaffirming their collective commitment to building a more inclusive, innovative, and investment-ready real estate sector in Nigeria.

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