The Nation Newspaper

Tag: MREIF

  • MREIF facilitates over 100 mortgages

    MREIF facilitates over 100 mortgages

    The Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), through its investment managers, has successfully issued over 100 mortgages, ranging in value from N50 million to N100 million.

    This development is set to empower mortgage banks to extend crucial mortgage facilities to Nigerians aspiring to build or purchase their own homes.

    The Managing Director of MOFI, Dr. Armstrong Takang, at the Memorandum of Understanding (MoU) signing ceremony with Shelter Afrique Development Bank in Abuja on Wednesday, said that “we have a solution that has local currency, allowing us to issue mortgages at scale, low interest, around four per cent, and longer tenants may have 10 years, 15, and even 25 years, depending on the age of the applicant to repay the mortgage.”

    Dr. Takang further elaborated on the comprehensive nature of the programme, stating that it involves “issuing mortgages on the demand side, but also offers guarantee on the supply side. So developers who have projects can come to us and we shall give them the guarantees. With that offer of the guarantee, they can go to financial institutions to raise the construction financing that they need.”

    He then clarified the role of Shelter Afrique in this ecosystem, explaining that “that’s where Shelter Africa comes in.

    Read Also: TrustBond, First Mortgages to emerge largest PMB

    When they (Real Estate Developers) get the guarantees, they can go to Shelter Afrique and apply for construction financing.” This mechanism, according to Dr. Takang, “means we are opening up more opportunities on the supply side and providing more opportunities for our developers who are interested in building houses for our subscribers.

    But they need financing. We do not give them financing directly, we give them guarantees.”

    Dr. Takang explained the strategic alignment between MOFI and Shelter Afrique, noting that “when they have the offer of the guarantees, they need to go to a financial institution that is willing, on the basis of that offer of guarantee, to give them construction financing, which is where Shelter Afrique comes in. So for us, this is a perfect alignment of vision and direction of traffic. Because we are addressing the demand side, we are issuing the mortgages.”

    He also pointed out that while MOFI addresses the demand side and partially supports the supply side through guarantees, “Shelter Africa will not give the construction financing without the off the guarantees.”

    Shelter Afrique’s Managing Director, Dr. Thierno-Habib Hann, described the partnership as more than just a formal agreement, stating that “this partnership is not just symbolic, It is a strategic alignment between our two institutions That share a bold vision for Africa’s future. It embodies a commitment to accelerate investment flows, unlock new opportunities in the housing and urban development sectors. And create a tangible impact on lives and economies.”

    Dr. Hann pointed out the significance of the collaboration, saying, “We are not just signing a document. We are building a bridge between strategic capital and critical national needs. Nigeria’s role in this partnership is not coincidental.”

    He noted Nigeria’s central position as one of Africa’s leading economies, “a true powerhouse of innovation and resilience,” and as one of the two largest shareholders of Shelter Africa Development Bank.

    He added that “Nigeria holds a place of choice in our continental strategy. Its dynamism, its market depth and its ambitious infrastructure agenda make it a natural platform for scaling solutions that will shape the future of housing and urban development across Africa.”

    Dr. Hann lauded MOFI’s strategic mandate, stating that it “offers an invaluable platform to leverage public assets, satellite private sector competence and drive large-scale development outcomes.”

    He concluded by expressing a shared commitment to “a result-driven collaboration that will focus on designing and delivering impactful projects, structuring innovative financing models.”

    The Managing Director of ARM Investment Managers, Mrs. Kai Orga, confirmed the disbursement of over 100 mortgages by her company under the MOFI Real Estate Investment Fund (MREIF) initiative and assured stakeholders of their capacity to meet the anticipated demand for the programme.

    According to her, “We’ve disbursed about 100 mortgages already, which has started. So the process has actually already started. We’ve gone live. We’re looking at onboarding more houses within the next few weeks. So the uptake is gaining a lot of ground with Nigerians. A lot of Nigerians are looking at the opportunity. We have a lot of people coming on board. We’ve also onboarded several financial institutions that we’re working with.”

  • Fed Govt’s MREIF secures N250b for housing

    Fed Govt’s MREIF secures N250b for housing

    The Federal Government’s MOFI Real Estate Investment Fund (MREIF) has begun  operations with a successful closure of its N250 billion pilot fundraising.

    It is a N1 trillion multi-tranche programme designed to transform the nation’s housing sector.

    The fund, managed by the Ministry of Finance Incorporated (MOFI), drew substantial interest from private sector investors.

    This sets the stage for broader engagement and accelerated housing development.

    According to a MOFI statement in Abuja yesterday, the conclusion of the initial fundraising phase marks a significant milestone in mobilising capital for Nigeria’s real estate sector.

    The pilot fundraising was conducted in two tranches. The first tranche, a N150 billion Series 1 issuance, was fully subscribed solely by MOFI, to lay a foundation for the programme.

    This was followed by the N100 billion Series 2 issued in February 2025, which “attracted demand from a wide range of institutional investors, ultimately achieving full subscription.”

    The statement noted that the active participation of private investors in Series 2 “positions MREIF as a credible and efficient investment vehicle, capable of delivering long-term value while addressing Nigeria’s persistent housing deficit.

    Read Also: Natasha: calls for recall intensify at home front

     Designed to provide competitive returns, MREIF’s core objective is to enable affordable homeownership through long-term, low-cost mortgage financing at scale.”

    The fund carries a top-tier Aaa rating from Agusto & Co. and an AA rating from GCR Ratings, confirming its strong creditworthiness and market appeal.

    These ratings enhance its attractiveness to institutional investors seeking secure and impactful investment opportunities.

    Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, described the pilot phase’s success “as a pivotal step toward overhauling the nation’s housing finance landscape.

     He said “the full subscription of the Series 2 offer reflects a strong appetite for structured, long-term housing finance solutions and affirms investor confidence in MREIF as a sustainable channel for real estate investment.”

    MREIF has been strategically developed to tackle both supply and demand challenges in the housing market.

    On the demand side, it offers affordable mortgage options with repayment periods of up to 20 years and interest rates as low as 12%, a notable reduction compared to prevailing commercial rates.

    On the supply side, it provides off-take guarantees for housing developers, a feature expected to unlock financing for large-scale construction projects, thereby stimulating the delivery of affordable housing units.

    Managing Director and Chief Executive Officer of MOFI Dr. Armstrong Ume Takang, described the fund as a game-changer for Nigeria’s housing finance system.

     He noted that “the full subscription of the second tranche is a testament to investor confidence in the fund’s structure and its potential to generate long-term value.”

    He added that MOFI remains committed to supporting the growth and stability of the fund as it progresses through subsequent fundraising rounds.

    The statement added that MREIF has been structured to integrate seamlessly with commercial and mortgage banks, real estate developers, and financial institutions, fostering a collaborative approach to scaling long-term housing finance solutions.

    The fund’s design enables it to function as a market-driven platform while fulfilling a critical national development goal: expanding access to affordable housing for millions of Nigerians.

    Following the successful pilot phase, MOFI is now focused on expanding investor participation in subsequent funding rounds.

  • FG’s MREIF secures N250bn, attracts private sector investors

    FG’s MREIF secures N250bn, attracts private sector investors

    The federal government’s MOFI Real Estate Investment Fund (MREIF), a N1 trillion multi-tranche programme aimed at transforming Nigeria’s housing sector, has commenced operations with the successful closure of its N250 billion pilot fundraising. 

    The fund, managed by the Ministry of Finance Incorporated (MOFI), drew substantial interest from private sector investors, setting the stage for broader engagement and accelerated housing development in the country.

    According to a statement issued by MOFI on Thursday in Abuja, “the conclusion of the initial fundraising phase marks a significant milestone in mobilising capital for Nigeria’s real estate sector.”

    The pilot fundraising was conducted in two tranches. The first tranche, a N150 billion Series 1 issuance, was fully subscribed solely by MOFI, to lay a foundation for the programme. 

    This was followed by the N100 billion Series 2 issued in February 2025, which “attracted demand from a wide range of institutional investors, ultimately achieving full subscription.”

    The statement noted that the active participation of private investors in Series 2 “positions MREIF as a credible and efficient investment vehicle, capable of delivering long-term value while addressing Nigeria’s persistent housing deficit. 

    Designed to provide competitive returns, MREIF’s core objective is to enable affordable homeownership through long-term, low-cost mortgage financing at scale.”

    The fund carries a top-tier Aaa rating from Agusto & Co. and an AA rating from GCR Ratings, confirming its strong creditworthiness and market appeal.

    These ratings enhance its attractiveness to institutional investors seeking secure and impactful investment opportunities.

    Wale Edun, Minister of Finance and Coordinating Minister of the Economy, described the pilot phase’s success “as a pivotal step toward overhauling the nation’s housing finance landscape.” 

    He said, “the full subscription of the Series 2 offer reflects a strong appetite for structured, long-term housing finance solutions and affirms investor confidence in MREIF as a sustainable channel for real estate investment.”

    Read Also: Fed Govt to attract private sector investment in infrastructure

    MREIF has been strategically developed to tackle both supply and demand challenges in the housing market. On the demand side, it offers affordable mortgage options with repayment periods of up to 20 years and interest rates as low as 12%, a notable reduction compared to prevailing commercial rates. 

    On the supply side, it provides off-take guarantees for housing developers, a feature expected to unlock financing for large-scale construction projects, thereby stimulating the delivery of affordable housing units.

    Dr. Armstrong Ume Takang, Managing Director and Chief Executive Officer of MOFI, described the fund as a game-changer for Nigeria’s housing finance system. 

    He noted that “the full subscription of the second tranche is a testament to investor confidence in the fund’s structure and its potential to generate long-term value.” 

    He added that MOFI remains committed to supporting the growth and stability of the fund as it progresses through subsequent fundraising rounds.

    The statement added that MREIF has been structured to integrate seamlessly with commercial and mortgage banks, real estate developers, and financial institutions, fostering a collaborative approach to scaling long-term housing finance solutions.

    The fund’s design enables it to function as a market-driven platform while fulfilling a critical national development goal: expanding access to affordable housing for millions of Nigerians.

    Following the successful pilot phase, MOFI is now focused on expanding investor participation in subsequent funding rounds. Institutional investors and partners are being invited to engage in upcoming tranches, as efforts intensify to mobilise resources for housing development on a larger scale.