Tag: real estate

Every year, Nigeria—and Africa at large—loses tens of billions of dollars to illicit financial flows, money that could fund schools, hospitals, and power infrastructure. Instead, much of it—up to 80 per cent—finds its way into a single, largely unregulated sector: real estate. In elite districts like Maitama, Asokoro and Guzape, ghost high-rises and opulent estates stand as monuments to misappropriated public funds, driving up property prices and deepening inequality. In this special report, OKWY IROEGBU-CHIKEZIE examines how corruption and weak oversight have turned Nigeria’s real estate sector into a vault for illicit wealth, while efforts to reclaim and redirect these assets for national development struggle to keep pace

Throughout much of Nigeria and across the African continent, real estate has become synonymous with the 21st century’s version of a Swiss bank account—a tangible, highly valued asset class often used to launder funds derived from corruption and other illicit activities. In high-brow areas such as Maitama, Asokoro, and Guzape, so-called “ghost high-rises” stand out due to their sheer size and striking architecture, many complete with manicured lawns and 24/7 security. Yet, these buildings remain virtually empty, with at least 80 per cent of windows unlit throughout the day. While the average worker faces rent hikes of up to 50 per cent, these properties serve less as residential housing and more as physical “savings accounts” for Nigeria’s elite, a way for political leaders to convert stolen wealth into cement and steel, shielding it from the volatility of the naira.

A notable example involves former Minister of Petroleum Resources, Diezani Alison-Madueke. In January 2025, the United States and Nigeria confirmed the repatriation of $52.88 million following a civil asset forfeiture case. Under the agreement, $50 million of the repatriated funds would be channeled through the World Bank to partly fund the Rural Electrification Project, improving the reliability and availability of renewable energy in Nigeria. The remaining $2.88 million would be granted to the International Institute for Justice (IIJ) to support its Rule of Law and Counter-Terrorism Project, which provides capacity building for criminal justice practitioners across East, West, and North Africa.

Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), emphasised that mechanisms had been put in place to ensure transparency and accountability, with periodic reporting to both Nigeria and the United States. The funds repatriated included the liquidated value of a $50 million luxury condo in New York and the $80 million yacht Galactica Star. Domestically, the EFCC secured the forfeiture of a $37.5 million fifteen-story building in Banana Island, Lagos, Bella Vista, comprising 18 flats and six penthouses. Investigators discovered the property was acquired through the shell company Rusimpex Limited, effectively parking tens of millions of dollars in a single real estate transaction while millions of Nigerians struggled to secure housing.

The case of former Delta State Governor James Ibori illustrates the international dimension of real estate money laundering. Ibori pled guilty in the UK to money laundering and fraud, maintaining a real estate portfolio that included six luxury properties in London, as well as holdings in Washington, D.C., Houston, Texas, and Johannesburg, South Africa. Despite earning around $25,000 as governor, he was pursuing a $20 million private jet at the time of his arrest in the UAE. In October 2023, a UK court ordered Ibori to repay over £100 million within 18 months or face an additional eight-year prison term. This case highlights how money initially intended for regional development in Nigeria was diverted into high-value, non-productive assets abroad.

In 2024, the EFCC secured one of Nigeria’s largest asset recoveries in Abuja—a 753-unit duplex/apartment complex acquired with corrupt proceeds by a former senior government official. Located in Abuja’s most prestigious neighborhoods, these properties, like many others seized, were rarely occupied, and never served public housing needs. Alongside this, the EFCC and ICPC recovered more than N277 billion and $105 million in 2024, much of it in tangible real estate assets. Similarly, former Chief of Air Staff Alex Badeh forfeited $1 million alongside multiple properties in prime Abuja locations.

Even when recovered, these assets often remain underutilised, perpetuating a “warehousing” effect that continues to hinder economic progress. For example, former Inspector General of Police Tafa Balogun was ordered to forfeit N13 billion in assets, including several plazas and residential buildings in commercial districts of Abuja. Subsequent investigations revealed that some of these properties, such as Yashua and Shakir Plazas, were sold at prices far below market value through opaque auctions to unregistered companies. This underscores a troubling secondary issue: without a transparent disposal process, recovered real estate can be reabsorbed by elites rather than being repurposed to address the housing needs of the less privileged.

These cases collectively demonstrate how real estate in Nigeria has become both a repository for illicit wealth and a barrier to social equity. While high-end properties in areas like Maitama, Asokoro, Guzape, and Banana Island symbolise status and financial security for the elite, they starkly contrast with the housing scarcity and rising rents experienced by ordinary Nigerians. The misuse of real estate as a tool for laundering corrupt wealth, coupled with inadequate transparency in asset recovery and disposal, continues to exacerbate inequality and limits the broader economic benefits that these assets could provide.

The ongoing efforts by the EFCC, ICPC, and international partners to repatriate and redistribute corruptly acquired funds signal progress, but the challenge remains significant. The physical and financial concentration of wealth in unproductive real estate continues to impact both housing affordability and national economic development. Comprehensive reforms, including transparent asset disposal mechanisms and reinvestment strategies targeting public benefit, are critical to ensuring that recovered wealth translates into tangible improvements in the lives of Nigerians.

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ICPC has repeatedly warned that high-end property development in Nigeria often functions as a front for illicit financial flows. In public testimonies, the commission has highlighted how corrupt public officials acquire sprawling estates under false names to conceal the illegal origins of their wealth. This practice is facilitated by weak property title documentation, lack of enforcement of beneficial ownership standards, and gaps in regulatory oversight. The ICPC has even launched investigations into the proliferation of “unoccupied estates” in cities like Abuja, Lagos, and Port Harcourt. These properties, largely empty, are rarely intended to house residents; instead, they serve as secure repositories for stolen wealth.

The scale of the problem is stark. In one enforcement action, the commission recovered 241 houses from a single public official. Another investigation involved 60 buildings situated on a single large plot of land. In a separate case, the ICPC secured the forfeiture of N2.4 billion and several properties linked to former PPMC chief Haruna Momoh. Investigations revealed that Momoh’s wife operated accounts holding millions in both local and foreign currencies, which were then used to acquire luxury duplexes in Abuja’s upscale Olympia Estate. These cases reflect a broader pattern: the use of real estate as a vehicle to convert illicit cash into durable, high-value physical assets.

This phenomenon is not confined to Nigeria. Organised crime groups across Europe have employed similar strategies, purchasing luxury villas in locations such as Spain’s Costa del Sol. By paying part of the property price in cash derived from illicit sources, these actors convert liquid illicit funds into tangible assets that appreciate over time while avoiding the digital trail inherent in conventional banking systems.

Within Nigeria, the construction sector often acts as the “layering” phase of money laundering. Corrupt officials frequently control construction firms that secure government contracts, inflating bills for labor and materials. The excess funds are then redirected into lavish private estates, functioning as slush funds. For instance, the ICPC recently confiscated 12 properties from construction firm director Ochuko Momoh, including luxurious mansions in Maitama and unfinished estates in Katampe. The commission noted that the assets were grossly disproportionate to her reported earnings, suggesting that the construction company served primarily as a vehicle for laundering public funds.

The United Kingdom has witnessed similar practices. Former Delta State Governor Ibori employed a complex network of shell companies and professional facilitators in London to manage a construction and property portfolio funded by embezzled state funds. Money pilfered from the Delta State treasury was funneled through multiple accounts, making it appear as legitimate business income. This method relies on a sophisticated system involving anonymous shell companies, off-the-record cash transactions, and the strategic use of construction projects to artificially inflate costs. Even as transparency laws are being strengthened in Nigeria, the battle between regulators and politically connected elites remains fierce. Cash remains the preferred vehicle for the initial stages of laundering, often channeled into real estate through Bureau De Change operators or other intermediaries.

The effects of this practice on the broader housing market are significant. When a corrupt official acquires multiple luxury units through a shell company, they are willing to overpay to move large sums of cash quickly. This inflates land prices and construction costs throughout the city. Developers, noticing the lucrative returns from high-end projects, often shift focus away from affordable housing and toward properties designed to store illicit capital. These empty buildings—sometimes called “warehouses for cash”—are rarely intended for tenants. Keeping them vacant allows owners to avoid the obligations and scrutiny that come with rental management. Even with the government’s planned rollout of the “Persons with Significant Control” (PSC) register in late 2025, wealthy individuals continue to use proxies or “straw men” to hide multi-billion-naira assets.

The laundering of African slush funds extends far beyond Nigeria. Investigative reports, including Transparency International and the Center for Advanced Defence Studies (C4ADS), have traced billions meant for public infrastructure and healthcare into luxury real estate markets across the globe. Dubai, London, and South Africa have emerged as key destinations for this wealth. C4ADS’s report “Sandcastles” revealed that at least 800 properties in Dubai are directly linked to Nigerian politically exposed persons (PEPs), their families, or proxies. Dubai’s luxury real estate market, with its tolerance for cash transactions and high levels of ownership anonymity, has effectively become a “physical bank” for Africa’s elite. While local populations face acute housing shortages, these officials acquire properties they seldom occupy, using them to safeguard illicit wealth against scrutiny and currency fluctuations.

London has long been a repository for African slush funds. According to the “Pandora Papers,” at least 230 UK properties, collectively valued at £350 million, were purchased secretly through corporate entities registered in the British Virgin Islands and Seychelles. Similarly, the United States has seized luxury properties purchased with illicit African funds. Former Nigerian governor Diepreye Alamieyeseigha, for example, used stolen oil revenues to acquire a home in Rockville, Maryland, alongside multiple properties in London. More recently, the US Department of Justice sold luxury New York condos linked to former Petroleum Minister Diezani Alison-Madueke for $50 million. These seizures demonstrate that even the most carefully constructed “cash warehouses” can be dismantled through coordinated international action, although for every seized property, hundreds remain hidden behind complex webs of shell companies.

Analysts have identified a clear pattern in real estate money laundering: placement, layering, and integration. Placement begins with the injection of cash or Bureau De Change funds into land purchases or large construction projects. Layering involves transferring property titles through shell companies and proxies to obscure the true source of funds. Integration occurs when the property is sold years later, or when rental income—now “clean”—enters the economy. This cycle distorts housing markets, as overpaid land drives up costs and reduces availability for genuine low- and middle-income buyers. In effect, properties are constructed not for habitation but as instruments to store wealth, exacerbating Nigeria’s housing crisis.

The consequences of this systemic practice are profound. While the political elite amass luxury assets both locally and abroad, ordinary Nigerians face skyrocketing rents and limited housing options. Corrupt real estate practices divert resources from public infrastructure, education, and healthcare into private wealth accumulation. Even recovered assets, such as confiscated apartments and luxury estates, often remain underutilized or are sold through opaque processes, sometimes returning to elite hands instead of being redeployed for social benefit. This “warehousing” of wealth underscores the urgent need for enhanced enforcement, robust transparency laws, and global collaboration to ensure that ill-gotten real estate is not merely recycled among the wealthy but contributes to equitable national development.

Industry responses to corruption and money laundering in real estate

Recent recoveries by the EFCC have amplified concerns about the use of luxury real estate as a vehicle for illicit wealth. Over the years, high-end properties have been linked to politically exposed individuals and senior civil servants, many of whom allegedly use real estate to shield ill-gotten gains. In response, estate management professionals are calling for stronger institutional frameworks and regulatory oversight to prevent abuse in the sector.

Addressing the issue, Otunba Sola Enitan, Estate Surveyor and Valuer, and Chairman of the Board of Trustees of the Society for Professional Valuation (SPV), emphasised that corruption and money laundering pose significant threats to economic growth. “For any country to thrive economically, we must tackle corruption and money laundering head-on,” Enitan stated. “The impact of laundering proceeds through real estate, without proper oversight, is staggering.” He underscored the need for enhanced management standards, aligned with international best practices, alongside stronger legislative protections governing financial transactions.

Enitan advocated that public officials be required to declare assets both before assuming office and after leaving, with independent verification by the ICPC. “Public officials must declare their assets at the start and end of their terms, and these declarations should be publicly accessible,” he said. He further called for thorough pre- and post-construction development appraisals to prevent over-invoicing and under-invoicing, practices commonly used to launder money. Procurement officers in both the public and private sectors, he noted, should be held accountable through professional certification and adherence to strict ethical standards.

The SPV chairman also recommended the establishment of a national online land registry, collaboratively managed by the EFCC and the Nigerian Financial Intelligence Unit (NFIU), as a tool to increase transparency and accountability in the real estate sector. On the matter of asset declaration, he urged the Code of Conduct Bureau (CCB) to be more proactive in ensuring compliance by politically exposed persons and civil servants, emphasizing that only qualified Estate Surveyors and Valuers are professionally and legally equipped to handle asset declaration and valuation.

Regarding vacant luxury properties, Enitan suggested heavy taxation of unoccupied units. “Because the funds used to procure many of these properties are proceeds of crime, owners often let them lie idle,” he said. “Government should impose substantial taxes on such properties to raise revenue and discourage misuse of wealth.” He warned that unchecked corruption could destabilise the financial sector, create market distortions, and discourage genuine investment in real estate.

Isaac Fabuiyi, another Estate Surveyor and Valuer, highlighted the legal obligations of practitioners under anti-money laundering regulations. Professionals are required to register with the Special Control Unit against Money Laundering (SCUML) for transactions exceeding legally approved thresholds. “The EFCC law mandates reporting of any transaction above a certain limit,” Fabuiyi explained, adding that non-disclosure by clients remains a major challenge. “While it’s not our direct responsibility to report clients, we must take precautions to prevent illicit funds from entering the system through our services.”

Government officials have also acknowledged the urgent need for reform. Barakat Odunuga-Bakare, Special Adviser to the Lagos State Governor on Housing, stressed the pivotal role of government in modernising real estate laws and regulations. Speaking at the inaugural conference of Female Lawyers in Real Estate Practice (FELIREP), themed “The Missing Gap: Absence of Revised Laws, Rules, Regulations, Policies, and Effective Monitoring on Emerging Trends in the Nigerian Real Estate Market,” she warned that outdated legislation could undermine transparency and sustainability.

“Lagos is a rapidly growing commercial hub, and the real estate market remains a vibrant force in the national economy, attracting investors seeking diversification and steady returns,” Odunuga-Bakare noted. “To ensure continued growth, it is imperative to actively review and update real estate laws, rules, regulations, and policies, while establishing effective monitoring mechanisms.” She highlighted the role of the Lagos State Real Estate Regulatory Authority (LASRERA) in registering practitioners and enforcing compliance, noting that technological innovations such as the E-GIS digital system and the state’s land administration portal have strengthened accountability.

The United Nations Development Programme (UNDP) commemorates International Anti-Corruption Day every December 9, encouraging global leaders to participate in combating corruption. The EFCC similarly marks the day as part of ongoing efforts to raise awareness, emphasising that public cooperation is essential to support investigations and enforcement. During a panel session on industry roles in regulating the market and addressing legal barriers in real estate development, Edward Akinlade, Group Managing Director of SURU Homes, drew comparisons between approval processes in Nigeria and the United Kingdom. He noted that project approvals in Nigeria are often slower and less efficient, creating opportunities for corruption. Akinlade advised industry participants to rely on professional services to reduce malpractice and enhance accountability.

Panelists agreed on the urgent need for legislative reforms to foster sustainable development, enhance market credibility, and align Nigeria’s real estate sector with global best practices. Collectively, these measures—from stricter asset declarations and pre-construction appraisals to technological innovations and robust anti-money laundering compliance—are seen as essential to protecting the integrity of the sector, ensuring fair market operations, and preventing the real estate market from becoming a haven for illicit wealth.

Security votes turned Governors’ slush funds

The EFCC Chairman, Ola Olukoyede, has raised serious allegations against certain state governors, claiming they are siphoning billions of naira from monthly security votes. Speaking at the annual lecture organised by the Honorary Members’ Forum of the Nigerian Air Force Officers’ Mess at Sam Ethnan Air Force Base in Ikeja, Lagos, Olukoyede stressed that corruption is the “real elephant in the room” fuelling Nigeria’s rising insecurity.

He revealed that stolen funds intended for security and poverty alleviation are often diverted into foreign currency accounts or fake investments, rather than being used to strengthen security infrastructure. Referencing the ongoing case against Willie Obiano, former governor of Anambra State, Olukoyede disclosed that the EFCC discovered over N4 billion in misappropriated security votes. “State governors collect billions each month as security votes without accountability,” he said. “Instead of investing in security systems, these resources are often converted into foreign currency and sent abroad. Had these funds been used properly, the security situation in Anambra and neighbouring states would be far better.”

Olukoyede also criticised issues with military procurement, highlighting the notorious $2.1 billion arms scandal, and noted how flawed economic models perpetuate poverty, particularly in northern Nigeria. He cited other cases, including a former accountant-general accused of stealing over N109 billion and stalled power projects plagued by bribery allegations. On the EFCC’s achievements, he noted that the agency recovered N566.3 billion between 2024 and 2025, including a record seizure of 753 properties, contributing to economic stability by curbing illicit financial flows.

Experts warn that the influx of such “slush funds” into property development is also driving up housing costs. Dr. Bennett Muhammad Doro, member of the governing council of the Institute of Mortgage Brokers and Lenders of Nigeria (IMBLN), told Channels TV that money laundering through real estate makes it nearly impossible for the average worker to access affordable housing. “Competition fuelled by illicit funds inflates property prices,” he said. Doro highlighted ongoing IMBLN efforts to professionalize and clean up the sector, collaborating with the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to prevent property being used to hide stolen public funds or finance terrorism. “Cleaning up the industry is not just a legal obligation but a human rights issue,” he stressed.

Transparency measures are proving critical. Arctic Intelligence, in its report “The Role of Beneficial Ownership Registers in Combating Financial Crime,” noted that registries and digital land titles help expose the real individuals behind companies and assets, curbing anonymous transactions. Examples from the United Kingdom, where the People with Significant Control (PSC) register revealed misuse of Scottish Limited Partnerships, and the United States, under the Corporate Transparency Act (CTA), demonstrate how disclosure requirements deter money laundering. Digitised land records, according to a World Bank study covering 37 economies, can reduce property transfer times by nearly 40 per cent while linking ownership to real individuals, enabling authorities to trace illicit funds hidden in complex structures. As calls for accountability grow, experts insist that stricter enforcement of anti-money laundering laws, transparent property registries, and professional oversight are essential to ensure public funds reach their intended purpose and prevent the exploitation of Nigeria’s real estate market by corrupt actors.

In a landmark move to tackle Nigeria’s housing deficit, the Federal Government has listed its N1 trillion Ministry of Finance Real Estate Investment Fund (MREIF) on the Nigerian Exchange (NGX). The initiative aims to expand access to affordable mortgages with long tenures and lower interest rates, unlock value from public real estate assets, stimulate economic growth and encourage private-sector participation, offering a market-driven approach to making homeownership more attainable for Nigerians, reports OKWY IROEGBU-CHIKEZIE

The Federal Government has taken a major step towards tackling Nigeria’s housing deficit by listing its N1 trillion real estate investment fund on the Nigerian Exchange (NGX). The Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) was formally listed on Tuesday under the leadership of the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.

The initiative is designed to expand access to affordable mortgages, offering repayment terms of up to 25 years at significantly lower interest rates than current commercial lending rates. According to Edun, the fund will unlock value from public real estate assets while creating a transparent, market-driven platform for housing investment. “This scheme is aimed at bridging part of the 22 million-unit housing deficit, generating employment, stimulating economic growth, and encouraging private-sector participation in housing construction,” Edun explained. He further highlighted that long-term investors would benefit from market-based returns while helping make homeownership accessible to more Nigerians.

Edun elaborated on the financial mechanism underpinning the fund, noting: “When I say low-cost, we are talking about low double digits, maybe 11 or 12 per cent, potentially lower depending on market conditions. This will be achieved by blending long-term savings from life insurance companies, pension funds, and other savers with low-cost government funding available at one per cent for up to 40 years. The result is mortgages at affordable rates with tenures of 20 years or more.”

He stressed that the structure could relieve Nigerians from the burden of commercial mortgage rates that often exceed 30 per cent with short repayment periods. “With this fund, repayment rates could drop to around 10 per cent, giving borrowers longer tenures and much-needed financial breathing room,” he said.

Despite the promise of the initiative, some experts and stakeholders have called for interest rates in the single digits to ensure genuine affordability for the average Nigerian. Industry players caution that the current 12 per cent rate may limit the scheme’s impact, potentially resulting in mortgages that are still out of reach for many and falling short of addressing the broader housing crisis. Nonetheless, the MREIF listing is seen as a significant milestone in Nigeria’s pursuit of sustainable housing solutions, offering a potential blueprint for mobilising private and public investments to meet the country’s growing housing needs.

One expert, who spoke to The Nation on condition of anonymity, questioned how the government arrived at the proposed 12 per cent interest rate for the newly listed real estate investment fund. He argued that, given current housing costs, the mortgage system, as structured, does little to benefit the target population. “A combination of single-digit interest rates and some form of housing subsidy is the only way to make homes truly accessible for low-income earners,” he insisted.

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Festus Adedayo, Executive Director of the Housing Development Advocacy Network (HDAN), acknowledged that a single-digit rate would have been ideal but noted that Nigeria’s current economic realities make this difficult. “Starting at 12 per cent is manageable, considering the fiscal and economic challenges the country faces,” he said. Adedayo also emphasised the importance of using locally produced building materials to lower construction costs and urged the Central Bank of Nigeria (CBN) to play a more active role in the housing and mortgage sector. He further stressed that government support for the Family Homes Fund (FHF) and the Federal Mortgage Bank of Nigeria (FMBN) is crucial to promote social housing and reach citizens who may not even afford a 12 per cent mortgage.

From a practical standpoint, Adewunmi Okupe, Managing Director of Ace Hi-Teck Construction Co., pointed out that a salaried worker earning N360,000 per month would struggle to service a mortgage at 12 per cent interest. He proposed a more realistic rate between four and six per cent, arguing that affordable housing must be paired with affordable financing. Using the example of a N12 million home, Okupe calculated that interest alone at 12 per cent would amount to N1.44 million annually, or N120,000 monthly—an unfeasible figure for the average Nigerian worker.

Dr. Niyi Ade, another industry observer, agreed that while 12 per cent improves affordability compared to commercial rates exceeding 30 per cent, it still excludes those at the lowest economic levels. He suggested that interventions should go beyond interest rates to include the promotion of cost-effective construction methods and accessible building materials. However, some experts maintain that 12 per cent is a step in the right direction. Compared to prevailing commercial rates, which often surpass 30 per cent, the new rate provides significant relief for middle-income earners. While single-digit rates would be preferable, a 12 per cent starting point is viewed as a realistic and rewarding approach given the current Monetary Policy Rate (MPR) of 27.5 per cent.

Estate surveyor and valuer Femi Oyedele has dismissed the prospect of single-digit mortgage interest rates in Nigeria, citing prevailing economic conditions and cultural factors as major constraints. He argued that achieving such rates is unlikely within the next decade. Oyedele also clarified that the Ministry of Finance Incorporated (MOFI) is not a mortgage bank but a commercial entity established to facilitate financial transactions, rather than provide structured mortgage financing. He referenced a similar N250 billion initiative announced in late 2024, which aimed to stimulate growth in the housing sector but was not designed as an affordable mortgage fund. According to Oyedele, the current N1 trillion Real Estate Investment Fund (MREIF) at 12 per cent interest functions more as a low-interest commercial loan than a traditional mortgage. True mortgage financing, he explained, requires structured contributions from prospective homeowners rather than direct government provision.

A statement jointly signed by the President and Executive Secretary/CEO of the Mortgage Banking Association of Nigeria (MBAN), Ebliate MAC-Yoroki and Adedeji Ajadi, outlined that the N250 billion MREIF Fund is structured to attract long-term private sector and capital market investments from Pension Fund Operators and Life Insurance Companies. These investments are blended with low-cost seed funding provided by the government. “MBAN encourages all Nigerians to embrace this opportunity to access affordable mortgages, fulfil their dreams of homeownership, and contribute to narrowing the housing gap,” the statement read. MBAN member mortgage banks and brokerage firms are positioned to facilitate the process, ensuring the benefits of the fund reach those most in need.

The strategic intervention by the Federal Executive Council (FEC), under President Bola Ahmed Tinubu, underscores a strong commitment to addressing Nigeria’s housing deficit while revitalising the mortgage banking subsector. The MREIF initiative represents a significant step toward making homeownership more attainable for Nigerians, even as discussions about optimal interest rates and accessibility continue.

The innovative financing model is poised to act as a catalyst for affordable homeownership in Nigeria, offering mortgages at interest rates approaching the single digits, with repayment tenures of up to 20 years. This structure provides much-needed relief to prospective homeowners who have long been constrained by high interest rates and affordability challenges. The initiative aligns seamlessly with the Federal Government’s strategic objective of addressing the country’s significant housing deficit. By facilitating easier access to mortgages, it is expected to stimulate economic growth, create jobs across the mortgage banking sector, and energise the broader real estate and construction industries.

This development highlights the crucial role of public-private collaboration in tackling national challenges like affordable housing. The Mortgage Banking Association of Nigeria (MBAN) remains committed to working closely with the Federal Government and key stakeholders to ensure sustainable, market-driven housing solutions for Nigerians.

Dr. Armstrong Takang, Managing Director of the Ministry of Finance Incorporated (MOFI), described the project as a landmark step toward promoting homeownership. He noted that mortgage rates under the fund will not exceed 12 per cent, with targets to reduce them below 10 per cent in future phases. “The savings from these low-cost funds are being passed directly to Nigerians through reduced interest rates on mortgages,” he said.

The initiative is being implemented in partnership with Family Homes Funds Limited (FHFL) and ARM Investment Managers, who will oversee operations. FHFL has additionally secured a credit line from the African Development Bank (AfDB) to further lower financing costs. Through the listing on the Nigerian Exchange (NGX), the Federal Government aims to attract private and institutional investors, mobilize long-term capital, and deepen Nigeria’s housing finance ecosystem. The move also reflects a broader shift from direct government spending toward market-based, socially impactful investments designed to promote sustainable development and long-term economic growth.

Under the programme, civil servants and other eligible Nigerians can access mortgage loans with just a 10 per cent equity contribution, significantly lowering the entry barrier to homeownership. The government has assured that the Ministry of Finance Real Estate Investment Fund (MREIF) will enhance transparency and investor confidence by adhering to the disclosure and reporting standards of the Nigerian Exchange (NGX).

For Ngozi Chukwu, Acting Managing Director of Infinity Trust Mortgage Bank (ITMB), the introduction of near–single-digit mortgage loans through MREIF is a commendable “game changer.” However, she stressed that more needs to be done, noting that mortgage banking contributes less than one per cent to Nigeria’s Gross Domestic Product (GDP), compared with 20–40 per cent in developed economies. Chukwu emphasised the need for stronger policy support and access to low-cost, long-term funds to deepen mortgage penetration and make homeownership a reality for more Nigerians. “The government must simplify and reduce the cost of land titling and registration. The current manual process is slow, expensive, and discourages both lenders and borrowers,” she said. She also called for a digital, transparent land registry to accelerate title perfection, enhance mortgage security, and attract greater private investment. Chukwu suggested that government provision of land and basic infrastructure—roads, water, electricity—while leaving development to the private sector could cut project costs by up to 50 per cent. Strengthening the capacity of the Federal Mortgage Bank of Nigeria (FMBN) would also expand access to affordable mortgages.

Chairman of the MOFI Board, Shamsuddeen Usman, described MREIF as a “landmark achievement” in promoting sustainable homeownership, while the National Coordinator of the programme, Sani Yakubu, highlighted its focus on increasing mortgage penetration with active private-sector leadership. Director-General of the Securities and Exchange Commission (SEC), Agama Emomotimi, noted the initiative’s critical role in advancing financial inclusion and leveraging the capital market for national development. ARM Investment Managers, who oversee the fund, described MREIF as a transparent, scalable, and private-sector-led approach, marking a significant departure from previous housing interventions and offering a more sustainable path toward closing Nigeria’s housing gap.