The Ministry of Finance Incorporated (MOFI) has officially announced its N150 billion Series 1 subscription to the MOFI Real Estate Investment Fund (MREIF), signaling a transformative initiative to tackle Nigeria’s housing challenges. This seed funding positions MOFI as both the Sponsor and Anchor Investor for the fund.

The landmark event was marked by a signing ceremony in Abuja, presided over by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun. During the ceremony, MOFI and its partners finalized the approval documents from the Securities and Exchange Commission (SEC), Nigeria, solidifying MREIF’s operational framework.

A Strategic Solution to Nigeria’s Housing Crisis

The launch of MREIF represents a bold and innovative step towards bridging Nigeria’s housing deficit and expanding access to affordable homeownership, a core focus of President Bola Ahmed Tinubu’s Renewed Hope Agenda.

Designed as a public-private partnership, MREIF aims to address systemic challenges in housing finance through an inclusive and sustainable approach. The fund prioritizes affordable mortgages with repayment terms of up to 25 years and interest rates projected at 11-12%, significantly lower than prevailing commercial market rates.

This achievement is made possible through a blended finance model that combines subsidized funding from MOFI with private sector investments at market rates. This innovative structure enables more favorable mortgage terms, thereby broadening access to affordable housing for millions of Nigerians.

A Vision for Transformative Impact

Beyond its immediate objectives, MREIF aspires to revolutionize the housing sector by mobilizing up to NGN1 trillion in funding. The current Series 1 initiative, valued at NGN150 billion, serves as the foundation for this vision. Plans are already underway for a Series 2 funding round, targeting an additional NGN100 billion from private sector investors, bringing the total to NGN250 billion in the near term.

This financial framework will provide long-term, affordable financing for large-scale housing developments and individual homeownership, directly addressing Nigeria’s urgent need for decent and affordable housing.

Stakeholder Commitment and National Impact

Speaking at the event, stakeholders lauded the commitment of President Tinubu, the Honourable Minister of Finance, and other partners for their unwavering support in realizing this ambitious initiative.

“This marks a pivotal moment in our efforts to address Nigeria’s housing challenges. With clarity of purpose and collaborative commitment, we are charting a new course for affordable homeownership and housing development in Nigeria,” said a representative from MOFI.

The launch of MREIF heralds a brighter future for the housing sector, offering hope to millions of Nigerians who can now anticipate access to decent, affordable homes.

With this initiative, Nigeria is not just addressing its housing deficit but also setting the stage for sustainable economic growth and social development.

Source: theeconomictimes.com.ng