The Federal Government has officially launched the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), a groundbreaking initiative valued at N250 billion. The fund, introduced during a signing ceremony in Abuja, is designed to revolutionize Nigeria’s housing and construction sectors by providing long-term, low-cost mortgage financing.
Presiding over the launch, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, highlighted the transformative potential of the MREIF in addressing Nigeria’s persistent housing challenges. He emphasized that the fund aligns with President Bola Ahmed Tinubu’s vision of fostering homeownership, generating employment, and driving economic development.
“This fund is a testament to the Federal Government’s commitment to addressing critical socio-economic challenges,” Mr. Edun said. “It is a bold step toward bridging the housing finance gap and making homeownership attainable for millions of Nigerians.”
Key Features of the MREIF
1. Affordable Mortgages: Offering repayment terms of up to 25 years, the initiative provides a stark contrast to the high-interest, short-tenor loans traditionally offered by commercial banks.
2. Two-Phase Rollout:
• The first phase, valued at N150 billion, aims to attract substantial private sector investment.
• A second phase will raise an additional N100 billion, further consolidating the initiative’s impact.
3. Public-Private Partnership (PPP): The fund incentivizes private developers to construct affordable housing units, stimulating growth in the real estate and construction industries while addressing the housing deficit.
Dr. Armstrong Takang, Managing Director of MOFI, underscored the broader socio-economic implications of the initiative. “This fund is more than a housing project; it’s a generational wealth-building opportunity. By enabling sustainable homeownership, we are creating pathways for Nigerians to build enduring financial security,” he explained.
Economic Impact
The MREIF is expected to redefine housing finance in Nigeria by lowering barriers to homeownership and fostering a more inclusive real estate market. Its impact is projected to extend beyond housing to:
• Job Creation: Energizing the construction sector to create thousands of jobs.
• Economic Growth: Catalyzing activity in related sectors such as manufacturing and financial services.
• Community Development: Supporting the construction of affordable housing to enhance urban development and quality of life.
“This initiative marks a new chapter in Nigeria’s housing finance landscape, offering opportunities for individuals and families to own homes while bolstering economic growth,” Mr. Edun concluded.
The MREIF demonstrates the Federal Government’s commitment to sustainable development and inclusive economic progress, setting the stage for a brighter future for millions of Nigerians.
