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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FirstBank, in collaboration with the MOFI Real Estate Investment Fund (MREIF), has highlighted opportunities for Nigerians to access affordable mortgage financing as part of efforts to reduce the country’s housing deficit and improve access to homeownership.

The financial institutions made this known during a home loan webinar themed, “Beyond Rent: The Path to Home Ownership Leveraging FirstBank-MREIF Home Loan Scheme to Build Long-Term Wealth.”

The webinar was aimed at informing Nigerians in both the formal and informal sectors about available mortgage opportunities and how they can use the scheme to finance homeownership.

Under the FirstBank-MREIF home loan scheme, eligible applicants can access mortgages with repayment periods of up to 20 years at a fixed interest rate of 9.75 per cent per annum, subject to applicable terms and eligibility requirements.

The webinar also highlighted the broader opportunities provided through MREIF, an initiative of the Ministry of Finance Incorporated, which seeks to expand access to long-term mortgage financing and address Nigeria’s housing deficit.

The fund ultimately aims to mobilise up to N1 trillion to expand mortgage access and support housing development across the country.

Speaking during the webinar, FirstBank’s Head of Personal Banking, Chukwuka Okonkwo, said the partnership was designed to broaden access to mortgage financing and contribute to closing Nigeria’s housing deficit.

Okonkwo said FirstBank’s extensive branch network and digital lending platforms provided the bank with the capacity to support Nigerians seeking to own homes.

He said the bank had also established partnerships with developers across several states after conducting research to identify properties that qualify for mortgage financing.

According to him, the bank intends to extend the mortgage opportunity to Nigerians in the diaspora and provide an end-to-end homeownership solution.

He said the partnership with MREIF would help ensure that the scheme reaches Nigerians across several states.

FirstBank’s Head of Security Documentation and Transactional Support, Legal Services, Uzoamaka Ihegazie, also explained the measures the bank takes to protect customers through proper property documentation.

She said the bank verifies property ownership and land documentation before financing is provided.

According to her, the process includes obtaining the Certificate of Occupancy, charting the survey plan to establish that the land is properly allocated for residential purposes and conducting title verification.

She said these documentation and verification processes were necessary to protect customers and prevent ownership-related problems after they take possession of their properties.

Also speaking, Executive Director, Sales and Investment, Leadway Pensure, Oluwafemi Adebayo, commended FirstBank for providing Nigerians with an opportunity to access mortgage financing.

He said access to homeownership was particularly important for Nigerians preparing for retirement, while also highlighting the possibility of using Retirement Savings Account pension schemes to procure property and create wealth.

The National Coordinator of MREIF, Sani Yakubu, said the fund was established to address Nigeria’s housing deficit by making long-term, low-cost mortgages available to average citizens while also stimulating activity in the construction sector.

Yakubu said many Nigerians had already benefited from the initiative and encouraged more eligible Nigerians to apply.

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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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FHA property holdings near N5 trillion

The Federal Housing Authority (FHA) holds property worth nearly N5 trillion, its Managing Director and Chief Executive Officer, Oyetunde Ojo, has said.

Ojo disclosed this during a media chat broadcast by Arise News TV on Monday. He discussed the authority’s housing projects, property management activities and plans to increase housing delivery across Nigeria.

The FHA manages residential estates and collects ground rent from allottees and occupants. Ojo linked the value of the authority’s property portfolio to those activities.

“We are in possession of close to about N5 trillion worth of property because we collect ground rent,” Ojo said.

The figure shows the scale of assets under the FHA as the federal government continues to expand housing development. It also highlights the role of property management alongside the construction of new homes.

FHA says thousands of homes are ready

Ojo said between 10,000 and 15,000 housing units are ready for delivery under the current administration.

He also said the government is working with private real estate investors to increase housing supply. He pointed to the MOFI Real Estate Investment Fund (MREIF) as one source of capital for private-sector housing projects.

READ ALSO :FHA Blames Developer for Port Harcourt Building Collapse, Says Approved Plan Was Altered

According to Ojo, about N200 billion has been released to the Ministry of Finance Incorporated (MOFI) and remains available for private investors to access.

The use of private capital could help expand housing construction. However, access to finance remains a major issue for developers and homebuyers in Nigeria.

FHA provides updates on Abuja projects

Ojo gave updates on several FHA projects across the country. The developments include housing schemes in Abuja, Ibadan, Lagos, Kano and Cross River State.

In Ajoda, Ibadan, the FHA has built about 120 housing units. Construction continues on additional units at the site.

The authority has also delivered 100 housing units in Lugbe, Abuja. In Gwari, nearly 400 units are nearing commissioning.

Ojo said the Gwari project did not receive funding from the Federation Account. He also disclosed that the FHA built 1,550 housing units for the Nigerian Army in Jibi, Abuja, in less than a year.

The units are expected to receive commissioning soon.

Karsana project targets 3,112 units

The Karsana housing development in Abuja remains one of the major projects under the federal government’s Renewed Hope Cities and Estates Programme.

The project covers 3,112 housing units. Ojo said the first phase, which contains about 2,000 units, should receive commissioning soon.

FCT Minister Nyesom Wike is also constructing roads around Karsana. The road works should improve access to the housing development and surrounding areas.

The government launched construction of the Karsana project in February 2024. Since then, it has started several Renewed Hope housing projects in different parts of Nigeria.

Projects expand beyond Abuja

The FHA is also advancing projects outside the Federal Capital Territory.

Ojo said between 500 and 600 housing units in Kano should soon receive commissioning by the Ministry of Housing and Urban Development. He added that about 500 units in Lagos are also nearing completion.

The authority has started groundbreaking work on projects in several states. One of them is located in Odukpani, Cross River State, where the FHA expects to commission the development soon.

The federal government has also started a 250-unit housing project for federal civil servants in Dukpa, Gwagwalada, Abuja. The scheme includes two- and three-bedroom bungalows.

The new project will add to 350 units already delivered through the Federal Integrated Staff Housing Programme. Together, the two schemes will provide 600 units.

Housing finance remains a major challenge

The government’s housing plans come as Nigeria continues to face problems with housing finance, land administration and consumer protection.

The Federal Mortgage Bank of Nigeria is also preparing to complete 962 housing units in Abuja. The project involves the Kaba District housing scheme, which the bank recovered after an alleged diversion of a $65 million loan used to finance it.

The government has proposed further reforms to address weaknesses in the housing market. These include a proposed National Housing Finance Authority and reforms to expand access to housing finance for informal-sector workers.

Another proposed policy, the National Housing and Built Environment Regulation Policy, would introduce measures such as developer licensing and escrow protection for buyers.

What the FHA disclosure means

The FHA’s property portfolio and its ongoing projects show the size of the federal government’s role in Nigeria’s housing market.

However, increasing the number of homes alone will not solve the country’s housing challenges. Buyers also need access to finance, reliable infrastructure, secure land titles and stronger protection in property transactions.

The success of current housing programmes will therefore depend on both construction and the systems that support housing delivery, financing, regulation and long-term property management.

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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 Mortgage Banking Association of Nigeria (MBAN) has called on the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to translate its strong financial performance into increased mortgage lending and wider access to affordable housing finance.

The call followed MREIF’s half-year 2026 financial results, which showed a profit before tax of ₦14.49 billion and profit after tax of ₦14.24 billion. The fund also declared interim dividends and increased its net asset value per unit to ₦106.71.

MBAN President, Ayo Olowookere, commended the fund’s financial performance, describing it as evidence of sound financial management. However, he argued that profitability should be matched with greater deployment of capital into mortgage lending.

According to Olowookere, MREIF increased its mortgage portfolio by 86 per cent within six months, but a significant portion of its assets remained invested in cash and investment securities rather than mortgage loans. He noted that much of the fund’s income during the period came from interest earned on these investments.

He said the situation creates an opportunity for MREIF to accelerate the deployment of its resources towards its core development mandate, particularly the expansion of affordable mortgage finance.

MREIF was established as a public-private partnership intended to provide long-term, relatively low-cost mortgage financing while helping deepen Nigeria’s housing finance market.

Olowookere said the fund’s success should therefore not be assessed only through profitability, dividends or growth in assets. He argued that its wider impact should also be measured by the number of mortgages created, homes financed and households helped to achieve homeownership.

The MBAN president stressed that expanding mortgage lending would still require strong risk management. He identified credit assessment, legal documentation, property verification and reliable operational systems as important components of responsible mortgage lending.

He also called for stronger collaboration between MREIF and primary mortgage banks to improve transparency, execution and the overall impact of the fund.

Beyond financing, Olowookere said government reforms in land administration, property registration and foreclosure processes would be necessary to strengthen Nigeria’s housing finance ecosystem.

He assured MREIF that mortgage banks were prepared to support the fund by originating quality mortgage assets, improving underwriting standards, adopting technology and working with the institution to expand responsible mortgage lending nationwide.

The development highlights a central challenge facing Nigeria’s housing sector. Having capital available is not the same as having affordable mortgages reaching households that need them.

For MREIF, the next test may therefore be whether its strong balance sheet can translate into significantly more accessible housing finance and, ultimately, more homes financed for Nigerians.

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The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) has disbursed N27.01 billion in the second quarter of 2026 to finance mortgages for 415 homebuyers, marking another milestone in the Federal Government’s efforts to bridge Nigeria’s housing deficit.

The latest disbursement brings the Fund’s cumulative financing to N131.67 billion, enabling more than 1,909 Nigerian families to access affordable home ownership through long-term mortgage facilities.

Details of the disbursement were contained in the second quarter (Q2) 2026 Investor Report released by ARM Investment Managers Limited, the fund managers of MREIF, at the Nigerian Exchange Limited (NGX).

The report highlights the growing impact of the Federal Government-backed initiative, which is designed to provide long-term, single-digit interest mortgage financing and expand access to affordable housing across the country.

MREIF commenced operations on March 17, 2025, following the full subscription and Securities and Exchange Commission (SEC) clearance of the basis of allotment for its N100 billion Series 2 issuance.

Structured as a N1 trillion shelf programme, MREIF operates as a closed-end real estate investment fund under a unit trust scheme in line with SEC regulations. The Fund is domiciled in Nigeria and denominated in naira.

According to the report, the Fund seeks to mobilise concessionary capital from the public sector alongside commercial funding from private investors to address Nigeria’s estimated housing deficit while improving access to affordable mortgages.

During the quarter under review, MREIF expanded its network of participating financial institutions by onboarding two additional Eligible Financial Institutions (EFIs), bringing the total to 22 institutions, comprising 11 commercial banks and 11 mortgage banks.

Through these institutions, the Fund provides long-term, low-cost financing that enables banks to offer eligible homebuyers mortgage loans at single-digit interest rates, significantly below prevailing commercial lending rates.

Beyond mortgage financing, MREIF also supports residential housing development through conditional offtake guarantees for qualified developers. The guarantees serve as credit enhancement instruments, helping developers secure construction financing for housing projects.

The report revealed that the Fund’s geographical reach continued to expand during the second quarter, with increased participation recorded in the North-West and South-East regions.

As a result, MREIF’s operations now cover 27 states across Nigeria’s six geopolitical zones, reflecting broader access to affordable housing finance nationwide.

It added that three active offtake guarantee transactions, valued at N9 billion, are currently supporting the construction of 475 housing units in Lagos and Abuja.

In addition, the Fund’s Investment Committee approved three new offtake guarantee transactions worth N7 billion, expected to facilitate the delivery of an additional 576 housing units.

The latest figures underscore the Federal Government’s commitment to expanding affordable housing opportunities through innovative financing mechanisms while encouraging greater private sector participation in residential housing development.

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First Bank of Nigeria, in partnership with the Federal Ministry of Finance through the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), has launched an affordable mortgage financing initiative aimed at expanding access to home ownership for Nigerians.

The programme offers eligible Nigerians access to government-backed mortgage loans at a single-digit interest rate of 9.75 per cent per annum, with financing of up to ₦100 million for residential property acquisition.

The initiative seeks to address one of the major barriers to home ownership in Nigeria—limited access to affordable long-term housing finance. Rising property prices, high lending rates and stringent mortgage requirements have continued to place home ownership beyond the reach of many Nigerians.

Under the scheme, qualified applicants can access mortgage financing on favourable terms, creating a more affordable pathway from renting to owning homes.

According to First Bank, the partnership supports the Federal Government’s broader efforts to bridge Nigeria’s housing deficit, deepen mortgage penetration and promote financial inclusion through innovative housing finance solutions.

The bank noted that the programme combines affordability, accessibility and long-term sustainability, enabling more Nigerians to purchase homes without the burden of expensive commercial lending rates.

First Bank reaffirmed its commitment to supporting national development by providing financial products that improve the quality of life of citizens and stimulate economic growth.

Industry stakeholders have described the initiative as a significant step towards strengthening Nigeria’s housing finance ecosystem and increasing access to affordable mortgages for low- and middle-income earners.

The mortgage financing programme is expected to help more Nigerians transition into home ownership while supporting growth across the housing, construction and real estate sectors.

Interested applicants can obtain more information and begin the application process through First Bank’s mortgage platform.

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President Bola Tinubu has commended the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) for delivering N128 billion in affordable mortgages to 1,859 families across 25 states of the federation.

The President described the milestone as evidence that the right policy framework, strong institutions and strategic partnerships can significantly expand access to home ownership for millions of Nigerians.

In a statement issued on Tuesday by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu said the beneficiaries, spread across the six geopolitical zones, accessed long-term mortgage facilities with repayment periods of up to 20 years at a fixed interest rate of 9.75 per cent per annum and a minimum equity contribution of 10 per cent.

Tinubu Says Affordable Housing Finance Is Key to Wealth Creation

According to the President, access to affordable mortgage financing has remained a major barrier to home ownership for many Nigerians over the past several decades.

“For years, many Nigerians could afford monthly rent but could not access the type of financing required to purchase a home,” Tinubu stated.

“That reality kept countless families out of home ownership and limited their ability to build lasting assets.

“The progress recorded by MREIF shows that with the right policies, strong institutions and effective partnerships, we can expand access to home ownership and create opportunities for more Nigerians to build wealth through asset ownership.”

MREIF Unlocks N221bn in Property Value

Beyond the N128 billion in mortgages already disbursed, the fund has reportedly unlocked N221 billion in total property value and supported the delivery of 475 housing units through off-take guarantee arrangements.

The Presidency noted that the average age of mortgage beneficiaries is 42 years, highlighting strong demand for affordable housing finance among working-age Nigerians who have historically struggled to access long-term mortgage facilities.

Understanding the MREIF Housing Finance Initiative

The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is a N1 trillion housing finance platform established to improve access to affordable mortgages and stimulate housing development across Nigeria.

Its pilot phase consists of N250 billion in concessionary and commercial funding.

The fund is sponsored by the Ministry of Finance Incorporated (MOFI) and managed by ARM Investment Managers.

Its Series 2 commercial issuance has received strong investment-grade ratings, including AAA from Agusto & Co. and AA from GCR Ratings, reflecting investor confidence in the initiative.

Part of Renewed Hope Housing Agenda

Tinubu explained that MREIF operates alongside other major housing interventions under his administration, including the Renewed Hope Cities and Estates Programme and Family Homes Funds Limited initiatives.

According to him, the programmes serve as complementary pillars of the administration’s broader strategy to reduce Nigeria’s housing deficit, expand affordable housing opportunities and increase home ownership nationwide.

The President reiterated his administration’s commitment to strengthening housing finance mechanisms and creating sustainable pathways for Nigerians to acquire homes through accessible mortgage schemes.

Industry stakeholders have continued to identify affordable mortgage financing as one of the most critical tools required to bridge Nigeria’s housing deficit and stimulate growth in the real estate sector.

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The Lagos State Government has raised concerns over Nigeria’s worsening housing crisis, warning that the country’s housing deficit could climb to nearly 28 million units if current intervention efforts are not accelerated.

The Commissioner for Housing, Hon. Moruf Akinderu-Fatai, disclosed that findings by the National Housing Data Technical Committee, inaugurated by the Federal Ministry of Housing and Urban Development, placed Nigeria’s official housing deficit at 14.925 million units.

Over 15 Million Homes Classified as Substandard

According to the commissioner, the challenge extends beyond the housing shortage, as an additional 15.2 million homes across the country have been identified as structurally defective or substandard.

He explained that when the number of inadequate housing units is combined with the existing deficit, Nigeria’s effective housing gap rises to nearly 28 million units.

Akinderu-Fatai warned that the growing deficit poses significant threats to economic development, urban planning, infrastructure delivery, and social stability across the country.

Lagos Remains the Epicentre of Housing Demand

The commissioner noted that Lagos State continues to experience the highest housing demand in Nigeria due to its rapidly expanding population and economic opportunities.

With an estimated population exceeding 17.8 million residents and an annual population growth rate of approximately 3.8 per cent, Lagos remains under intense housing pressure.

He attributed the challenge to rapid urbanisation, continuous rural-to-urban migration, and limited land availability within the state.

Independent estimates place Lagos State’s housing deficit at more than 3.3 million units, with the shortage particularly pronounced among low- and middle-income earners.

Affordable Housing Remains a Major Challenge

Akinderu-Fatai stressed that affordability remains one of the biggest barriers to homeownership for many Nigerians.

He explained that demand for affordable housing continues to outpace supply, especially in urban centres where rising construction costs and land prices have pushed housing beyond the reach of many households.

Federal Government Expands Housing Finance Initiatives

The commissioner highlighted several Federal Government interventions aimed at addressing the housing crisis.

Among them is the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), which provides mortgage financing at a single-digit interest rate of 9.75 per cent and repayment tenures of up to 20 years.

According to him, such initiatives are designed to improve access to housing finance and support homeownership across different income groups.

Lagos Delivers Over 10,000 Housing Units

Akinderu-Fatai disclosed that the Lagos State Government has delivered 10,623 housing units over the past seven years through a combination of direct government investment and Public-Private Partnership (PPP) arrangements.

He added that ongoing housing projects across the state are expected to increase the number of delivered units to more than 14,000 before the end of 2026.

The commissioner reiterated the state government’s commitment to expanding affordable housing opportunities and reducing barriers to homeownership.

Housing Projects Driving Economic Growth

Beyond addressing accommodation needs, Akinderu-Fatai noted that housing developments have become a major driver of economic activity within Lagos.

He said investments in housing projects are creating employment opportunities, stimulating the construction sector, and boosting growth across the broader real estate value chain.

According to him, sustained collaboration between government and private sector stakeholders remains critical to closing the housing gap and ensuring access to decent, affordable housing for Nigerians.

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