The federal government, through the Ministry of Finance Incorporated (MOFI), has fully subscribed to the Series 1 issuance of N150 billion for the Real Estate Investment Fund (MREIF), in a move to bridge housing deficit in the country.
This landmark initiative was designed to stimulate economic activity in the real estate and construction sectors.
The full subscription to the Series 1 Fund underscores the federal government’s pivotal role as the sponsor while empowering the private sector to lead the implementation and management of the initiative. By seeding the fund with N150 billion, the government has laid a strong foundation for MREIF’s success, ensuring its sustainability and long-term impact under the stewardship of private sector expertise.
To this end, ARM Investment Managers (ARM) has been appointed fund manager for MREIF, and will oversee the deployment of funds to provide long-term, low-cost mortgage financing for homeowners and offtake guarantees for developers.
These measures are expected to enhance improvement in homeownership and the timely delivery of quality, affordable housing across Nigeria while boosting economic growth.
While the managers of MREIF, said it aims to transform Nigeria’s housing landscape by facilitating access to low-cost, long-term mortgages for aspiring homeowners, they added that, the Fund also has the objective of incentivising real estate developers through offtake guarantees to raise funding for the construction of affordable housing units as well as stimulating job creation and boosting economic activity in the construction and real estate industries.
With the successful subscription of the entire N150 billion in Series 1 issuance and the allotment of 100% of the units to MOFI, the Series 2 issuance of N100 billion is expected to be opened for private and commercial investors, subject to the Securities and Exchange Commission’s(SEC) approval.
While it provides a unique opportunity for institutional investors, high-net-worth individuals, and other private stakeholders to participate in a transformative initiative that promises both economic impact and competitive financial returns, by investing in MREIF, private investors will be supporting the improvement of homeownership in Nigeria.
This will also make investors to benefit attractive returns on investment, diversification of their portfolios with a focus on impact-driven projects, contribution to Nigeria’s economic growth and housing solutions and alignment with the United Nation’s Sustainable Development Goals (SDGs).
The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is an initiative of President Bola Tinubu’s vision, championed by the minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, to improve homeownership and spur inclusive economic development
