The Ministry of Finance Incorporated Real Estate Investment Fund has raised N250 billion to address Nigeria’s housing finance gap, following a strong response from private sector investors. This funding initiative aims to enhance access to affordable housing and is part of a wider strategy targeting N1 trillion in total capital. MREIF offers long-term mortgage financing at competitive interest rates and is expected to accelerate housing development nationwide.
The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) has successfully raised N250 billion in a pilot fundraising initiative aimed at addressing Nigeria’s housing finance deficit. This announcement was made by Sani Yakubu, the executive director and coordinator of MREIF. The recent funding round included a fully subscribed N100 billion issuance, highlighting strong confidence from institutional investors in the fund’s potential to enhance long-term housing development in Nigeria.
The latest fundraising follows the earlier N150 billion Series 1 subscription, funded entirely by MOFI as both sponsor and anchor investor. With this latest effort, MREIF is progressing towards its ambitious target of N1 trillion, which is directed towards increasing access to affordable housing throughout Nigeria. MREIF’s offerings include long-term mortgage financing with repayment terms extending up to 25 years and interest rates starting at 12 percent, much lower than traditional commercial lending rates.
Additionally, MREIF provides off-take guarantees for developers, thereby stimulating further investment in residential projects. Wale Edun, Nigeria’s finance minister, praised the pilot phase, noting it represents a “long-overdue transformation of Nigeria’s housing sector.” He emphasized that the presence of numerous investors indicates a significant demand for structured, sustainable housing finance solutions.
Armstrong Ume Takang, managing director of MOFI, remarked on the substantial investor engagement, asserting that MREIF is creating new investment opportunities in Nigeria’s housing market. He stated, “This fully subscribed series demonstrates investor confidence in the Fund structure and long-term potential, which MOFI fully supports.”
The MREIF’s multi-tranche program aims to synergize subsidized public funding and market-rate private sector capital, ultimately reducing borrowing costs for homeowners. Future fundraising rounds are anticipated to enhance investor involvement and promote the development of affordable housing in the country.
The recent successful fundraising by MREIF underscores a proactive effort to bridge Nigeria’s housing finance gap through substantial investment and strong demand from the private sector. With a target of N1 trillion in sight, MREIF aims to transform the housing landscape by providing more accessible financing options. The collaborative approach combining public and private funding promises to foster significant growth in affordable housing development across Nigeria.
Original Source: www.premiumtimesng.com
