Nigeria’s drive toward affordable housing received a significant boost yesterday as the Ministry of Finance Incorporated (MOFI) and Shelter Afrique Development Bank signed a N100 billion deal to finance housing projects across the country.

The Memorandum of Understanding (MoU) was signed in Abuja by MOFI Managing Director, Dr. Armstrong Takang, and his counterpart at Shelter Afrique, Mr. Thiembo-Habib Hann.

Dr. Takang described the partnership as a milestone in Africa-led solutions for the continent’s housing challenges.

“Housing is clearly one of the major challenges on the continent, but it also presents incredible opportunities for African businesses,” he said.

He explained that the initiative falls under the MOFI Real Estate Investment Fund (MREIF), a N1 trillion programme designed to be raised in phases. Series 1 has already raised N150 billion, while Series 2 has secured an additional N100 billion—bringing the total to N250 billion. These funds, currently with the custodians, have commenced disbursement.

While acknowledging the scale of Nigeria’s housing deficit, Dr. Takang emphasized that even N1 trillion is “a drop in the ocean,” but a highly symbolic and strategic starting point.

“It is symbolic in the sense that the funding is in local currency. Often, financing for housing comes in foreign currency, making deployment difficult due to exchange rate risks. But now, we can issue mortgages in naira at scale, at lower interest rates, and with longer tenors—10, 15, even up to 26 years, depending on the applicant’s age,” he explained.

The programme addresses both the demand and supply sides of the housing market. On the demand side, mortgages will be issued to subscribers. On the supply side, off-take guarantees will be provided to developers, especially those building for MREIF beneficiaries.

“With these guarantees, developers can approach financial institutions to obtain the construction finance they need. That’s where Shelter Afrique comes in—to support the supply side,” Dr. Takang said.

He clarified that MOFI does not provide direct financing but facilitates it through off-take guarantees that reduce lender risk.

“We are not giving money directly, but our guarantees make it easier for developers to get the money. Shelter Afrique will not release funds without those guarantees,” he added.

Dr. Takang described the partnership as a powerful tool to address Nigeria’s housing gap, with potential for replication across Africa once proven successful.

In his remarks, Shelter Afrique MD Mr. Thiembo-Habib Hann said the agreement marked a strategic alignment between institutions that share a bold vision for Africa’s urban development.

“This MoU represents more than a formal agreement. It’s a commitment to accelerate investments, unlock opportunities in housing and urban development, and make a real impact on people’s lives and national economies,” he said.

Mr. Hann emphasized Nigeria’s critical role as one of Shelter Afrique’s two largest shareholders, stating that the country holds a central place in the bank’s continental strategy.

Also speaking at the event, Managing Director of ARM Investment Managers, Mrs. Kai Orga, revealed that the disbursement of mortgages to subscribers has already commenced.

She added that the application process had been simplified to expand access to homeownership for more Nigerians.

SOURCE: vanguardngr.com