A significant injection of private cash is set to invigorate Nigeria’s housing sector, as the MOFI Real Estate Investment Fund (MREIF) announced the successful raising of a substantial N100 billion. This impressive sum was secured from private investors through a fully subscribed Series 2 issuance, signaling a powerful vote of confidence in the fund’s mission and the potential of the Nigerian housing market.
This N100 billion haul marks a pivotal moment for MREIF, forming a crucial part of its broader N250 billion pilot fundraising initiative. The overarching aim? To tackle the persistent challenge of housing finance scarcity that has long hampered the dreams of many Nigerians seeking affordable homeownership.
The announcement, conveyed in a statement from MREIF’s Executive Director (Coordinator), Sani Yakubu, underscored the enthusiastic response from institutional investors. This robust participation from the private sector stands in notable contrast to the fund’s initial N150 billion Series 1 issuance, which was solely backed by MOFI (the Ministry of Finance Incorporated). This shift highlights MREIF’s growing credibility as a viable avenue for private capital to meaningfully contribute to long-term housing solutions.
Adding weight to its market standing, MREIF boasts a top-tier “Aaa” rating from Agusto & Co. and a strong “AA” rating from Global Credit Rating (GCR). These endorsements position the fund as a trustworthy and market-driven platform for those looking to invest in Nigeria’s housing future.
The news has been met with considerable enthusiasm at the highest levels of government. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, hailed the fully subscribed offer as a clear indicator of the significant unmet demand for well-structured housing finance options within the country. He also emphasized the strong belief investors hold in MREIF’s approach.
“The successful close of this pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector,” Minister Edun stated, clearly optimistic about the fund’s impact. “With this initiative, we are unlocking private capital and positioning MREIF as a sustainable, market-driven investment vehicle. The full subscription of the Series 2 offer demonstrates that Nigeria’s private sector is ready to invest in structured, long-term housing finance solutions that will provide affordable homeownership opportunities to Nigerians.”
MREIF’s fundamental structure is specifically engineered to overcome key obstacles that have traditionally hindered housing finance in Nigeria. The fund aims to provide affordable mortgage financing with repayment periods stretching up to 20 years and interest rates starting as low as 12%. This is a significant advantage compared to prevailing commercial lending rates, making homeownership a more attainable prospect for a larger segment of the population.
Furthermore, MREIF offers off-take guarantees to developers. This crucial element reduces the risk associated with large-scale housing projects, thereby encouraging developers to embark on ambitious ventures that can contribute significantly to closing Nigeria’s substantial housing deficit.
Looking ahead, Dr Armstrong Ume Takang, the MD/CEO of MOFI, expressed his confidence in MREIF’s long-term prospects. He noted that the fully subscribed issuance serves as a powerful signal of strong investor trust in the fund as a vehicle for mobilizing housing finance on a significant scale.
“MREIF is unlocking new investment frontiers in Nigeria’s housing sector,” Dr Takang affirmed. “This fully subscribed Series 2 issuance demonstrates investor confidence in the Fund’s structure and long-term potential, which MOFI fully supports.”
With MREIF’s ambitious NGN1 trillion multi-tranche programme now officially underway, the fund is gearing up for its next phase. The focus will be on further expanding participation from the private sector and accelerating the development of large-scale housing projects across the nation.
The fund’s operational model is designed for seamless integration with key players in the housing ecosystem, including commercial banks, mortgage providers, developers, and other financial institutions. This collaborative approach aims to create a robust and sustainable framework for long-term housing finance in Nigeria.
Ultimately, the MOFI Real Estate Investment Fund, approved and regulated by the Securities and Exchange Commission (SEC), is poised to play a pivotal role in addressing Nigeria’s chronic housing deficit. By channeling private investment into structured and affordable housing initiatives, MREIF offers a tangible pathway towards expanding homeownership and strengthening the very foundations of Nigeria’s housing finance sector. The successful Series 2 issuance is not just a financial achievement; it’s a beacon of hope for countless Nigerians aspiring to own their own homes.