The federal government through the ministry of Finance Incorporated (MOFI) have championed the MOFI Real Estate Investment Fund (MREIF) introduced under President Bola Tinubu’s administration as backed up initiative with the minister of finance and coordinating minister of the economy, Mr Wale Edun, in a bid to expand housing affordability to private sector, and offer developer’s offtake guarantee to strengthen Nigeria’s housing market.
This initiative is sponsored by MOFI and managed by ARM Investment Managers, even as MREIF is expected to provide affordable, long-term mortgage financing and offtake guarantees to expand housing access, support developers, create jobs, and strengthen Nigeria’s housing market.
The MREIF recently reduced its interest rate from a fixed 12 per cent to 9.75% per annum, making homeownership more accessible in Nigeria.
This is just as more than 700 Nigerians have become homeowners in just 6 months of the initiative championed by the federal government to drive innovative housing solutions for private sector and make home ownership in Nigeria accessible.
This milestone marks a turning point in Nigeria’s housing sector, which has long been plagued by high interest rates, limited financing, slow mortgage processing and a deficit of over 28 million homes.
At the heart of this transformation is the MOFI Real Estate Investment Fund (MREIF), a Securities and Exchange Commission (SEC) registered N1 trillion fund created to provide long-term, affordable mortgages for ordinary Nigerians at scale.
With interest rates slashed to 9.75% per annum and repayment periods of up to 20 years, the initiative is intended to make at least 12,000 Nigerians homeowners at full utilization of the programme with more Nigerians positioned to benefit through plans to refinance by the Nigerian Mortgage Refinancing Company.
For decades, millions of Nigerians have been trapped in a cycle of rent payments, often described as funding their landlord’s retirement. The lack of affordable mortgage options made saving for a home nearly impossible. Now with MREIF, homebuyers can secure a loan to purchase their dream home within a few weeks.
Speaking on the initiative and its growing impact, CEO of ARM HoldCo, Wale Odutola said, MREIF embodies the kind of partnership Nigeria has long needed, hence, government resolve combined with private sector rigour. Together with MOFI, we are laying the structural foundation for a housing sector that rewards citizens, unlocks investor confidence, and drives inclusive growth, he said.
He added that, the ripple effect of MREIF extends beyond individual mortgages. By offering developers offtake guarantees, the fund encourages new construction projects, creates jobs, and fuels the housing supply chain. Nigerians in the diaspora now have a transparent, government-backed platform to channel their investments into secure homeownership.
This dual focus on supply and demand is designed to strengthen Nigeria’s housing ecosystem, ensuring that reforms benefit not just today’s homeowners but also future generations.
