The MOFI Real Estate Investment Fund (MREIF) has provided more than N140 billion in mortgage financing to over 2,000 Nigerians since it began operations in March 2025.

The Federal Government-backed housing finance initiative has expanded its reach across the country. Mortgage beneficiaries now span 27 states, according to Olubiyi Adekunbi, Head of Real Estate Investment at ARM Investment Managers.

Adekunbi disclosed the figures during a FirstBank webinar titled “Beyond Rent: The Path to Home Ownership Leveraging FirstBank-MREIF Home Loan Scheme to Build Long-Term Wealth.”

MREIF Mortgage Disbursements Begin in 2025

MREIF began mortgage disbursements in April 2025. By August 2026, more than 2,000 people had received financing through the scheme.

Adekunbi said the fund has maintained a relatively fast application process. He added that applicants do not need personal connections to move their applications through the system.

The quickest mortgage transaction under the programme took less than three weeks, he said. However, applicants must submit the required documents and complete all due diligence checks before approval.

Adekunbi said eligible applicants could potentially complete the process and secure a home within a month.

Mortgages Available Across 27 States

Lagos and Abuja account for the largest share of applications under the scheme. However, MREIF has extended mortgage financing to properties in 27 states across Nigeria’s six geopolitical zones.

Properties in Ogun, Oyo, Enugu, Kano and Kaduna can qualify for financing. Applicants must provide valid land titles and clear ownership records for the properties.

The scheme also serves Nigerians living abroad, provided they meet the required eligibility and documentation conditions.

Adekunbi said the average age of applicants stands at 43. Mortgage repayment periods generally take retirement age into account.

Most loans are structured around a retirement age of 60. Some professionals, including lecturers and judges, may qualify for different arrangements because of their higher retirement ages.

Nigeria Needs More Housing Finance

The MREIF expansion comes as Nigeria continues to face a major shortage of housing.

Sani Yakubu, MREIF National Coordinator at the Ministry of Finance Incorporated (MOFI), said Nigeria needs to build at least 700,000 housing units each year to address the housing gap.

He said the country currently produces about 100,000 units annually. The difference between required and actual housing production highlights the scale of the supply challenge.

Yakubu linked part of the problem to limited access to affordable mortgage finance. Developers also face difficulties raising capital and obtaining proper land documentation.

He said MREIF aims to support existing financial institutions rather than replace them. The fund, he explained, is intended to help strengthen the mortgage market and increase access to long-term housing finance.

Government Provides N150bn for First Tranche

The first N250 billion tranche of the MREIF programme received N150 billion from the Federal Government.

Private-sector investors contributed the remaining N100 billion. The tranche forms part of the wider N1 trillion MREIF programme registered with the Securities and Exchange Commission.

Nigerian professionals developed the fund structure. Vetiva Capital Management serves as financial adviser, while STL Trustees acts as trustee and First Nominees serves as nominee.

The funding model is designed to attract additional capital into Nigeria’s real estate and mortgage sectors. Greater availability of long-term finance could help more households move from renting to home ownership.

MREIF Mortgage Terms

MREIF offers mortgages of up to N100 million at an interest rate of 9.75%. Eligible borrowers can repay the loans over periods of up to 20 years.

Applicants must provide at least 10% equity toward the property purchase. Contributors to the Contributory Pension Scheme can also use up to 25% of their Retirement Savings Account balance to meet the equity requirement.

MREIF caps its mortgage exposure at N100 million per property. Buyers seeking properties above that value must fund the balance through other sources.

These may include personal savings, approved pension withdrawals or other available funding.

MREIF Reports N14.49bn Profit

The mortgage expansion follows MREIF’s reported financial performance for the first half of 2026.

The fund recorded N14.49 billion in profit before tax for the six months ended June 30, 2026. It generated total income of N17.48 billion during the period.

Interest income from financial assets measured at amortised cost contributed N8.10 billion. Cash and cash equivalents generated a further N6.21 billion.

After a withholding tax charge of N250.5 million, profit after tax stood at N14.24 billion.

FirstBank Partnership Expands Mortgage Access

The latest figures also follow FirstBank’s partnership with MREIF to expand access to mortgage financing.

Under the partnership, eligible Nigerians can seek mortgage loans of up to N100 million. The initiative is part of broader efforts to increase access to home financing and support home ownership.

MREIF’s growing disbursement figures show the potential role of long-term mortgage finance in Nigeria’s housing market. However, expanding access will also require adequate housing supply, clear land titles and financing that households can sustain over the life of their loans.

For Nigeria’s housing sector, the continued rollout of MREIF could help connect homebuyers with longer-term finance while giving developers greater access to capital. The fund’s ability to expand beyond major markets will also be important as the country seeks to increase home ownership and narrow its housing supply gap.

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Nigeria’s real estate sector continues to face significant financing challenges that are slowing down housing and commercial property development across the country.

Industry observers note that access to adequate funding remains one of the biggest barriers to project execution, as developers struggle to secure affordable and long-term capital needed for large-scale construction.

High borrowing costs from commercial banks, combined with short repayment periods, have made it difficult for many developers to sustain ongoing projects. In several cases, construction work slows down or is abandoned due to financial pressure.

The lack of affordable mortgage options also continues to limit the sector’s growth. Many potential homebuyers are unable to access financing, reducing demand for newly built properties and discouraging large-scale investments in housing development.

These financing constraints have contributed to Nigeria’s widening housing deficit, as population growth and urbanisation continue to outpace the supply of new homes in major cities.

Rising construction costs have further worsened the situation, with inflation and currency fluctuations increasing the cost of building materials and overall project budgets. This has forced developers to adjust designs, delay completion timelines, or seek additional funding that is often difficult to obtain.

Beyond developers, the funding gap has wider economic implications. The real estate sector supports multiple industries, including construction, manufacturing, engineering, and professional services. When projects are delayed, job creation and economic activity across these sectors are also affected.

Experts suggest that addressing these challenges will require coordinated efforts between government, financial institutions, and private investors. Improved access to long-term financing, development of flexible mortgage systems, and alternative funding models such as investment trusts and public-private partnerships are seen as key solutions.

Without stronger financing structures, analysts warn that Nigeria’s housing deficit will continue to grow, placing additional pressure on urban infrastructure and affordability.

The post Lack of Funds Stalls Real Estate Development in Nigeria appeared first on Housing TV Africa.

By Usman Abdulrasak

For decades, homeownership has been the ultimate marker of stability for Nigeria’s middle class. A house symbolized not just shelter, but also economic progress, social mobility, and a form of security to pass down to the next generation. Today, however, that aspiration is slipping further away. For many families in Lagos, Abuja, Port Harcourt, and beyond, the dream of owning a home feels more distant than ever.

The most glaring challenge is the mismatch between housing costs and earnings. Nigeria’s official housing deficit stands at over 28 million units, and the limited supply has driven prices far beyond the reach of average workers. Land in major cities is heavily inflated, construction materials are tied to volatile foreign exchange rates, and inflation continues to erode household savings. Meanwhile, salaries for teachers, civil servants, bankers, and other middle-class professionals have remained largely stagnant. The result is a widening affordability gap that locks families out of the market.

Rent has become the single largest financial burden for many households. In Lagos, tenants often pay one or two years’ rent upfront, with prices that swallow nearly half of their annual income. In Abuja, prime locations remain reserved for elites and expatriates, while middle-income families are pushed to satellite towns, enduring long commutes and high transport costs. This cycle of heavy rent obligations prevents families from saving toward ownership, leaving them perpetual tenants in an increasingly hostile market.

Access to mortgages, which should bridge this gap, remains limited. Nigeria’s mortgage penetration is less than 1% of GDP, one of the lowest in Africa. High interest rates often in double digits combined with short repayment tenures make mortgages unaffordable for the very people who need them most. A civil servant or banker earning a steady salary may still find the monthly repayments higher than their take-home pay. Instead of enabling access, the financial system often reinforces exclusion.

Policy failures add another layer of difficulty. Land administration remains opaque and riddled with bureaucracy, with multiple claims on titles discouraging genuine buyers. Government housing projects, while well-intentioned, are too few to meet demand and often end up in the hands of wealthier buyers who can pay upfront. Speculative investors treat housing as an asset to trade rather than a social necessity, driving prices higher while leaving units unoccupied.

The implications for Nigeria’s middle class are profound. Without access to secure housing, families face instability that affects education, health, and overall well-being. Young professionals are delaying family formation because they cannot afford a home, while older generations struggle to provide a legacy for their children. At the national scale, the failure to make housing accessible deepens inequality and undermines social cohesion.

Reversing this trend requires bold action. Nigeria needs large-scale affordable housing projects built with local materials to reduce costs and create jobs. Mortgage products must be redesigned with longer repayment periods and lower interest rates, backed by government guarantees. Land administration should be digitized and simplified to reduce corruption and cut down processing time. Rent-to-own models can offer middle-class tenants a pathway into ownership, while public-private partnerships can ensure that developers, banks, and government agencies work together to deliver truly affordable housing.

Homeownership in Nigeria is not a luxury; it is a necessity that underpins social stability and economic growth. If decisive action is not taken, millions of middle-class families the backbone of the country’s economy will remain locked out of one of life’s most important milestones. For them, the dream is simple: a place of dignity, stability, and security to call home. Whether Nigeria will rise to meet this challenge or allow the dream to keep slipping away remains an urgent question.

The post Why Homeownership Is Slipping Further Away for Middle-Class Families in Nigeria appeared first on Housing TV Africa.