The Ministry of Finance Incorporated Real Estate Investment Fund has raised N250 billion through Series 1 and 2 issuances, a crucial step towards releasing private money for Nigeria’s housing industry.
According to a regulatory filing, the fund now targets an additional N1 trillion to further scale affordable housing and long-term mortgage financing in the country.
The latest issuance, Series 2, raised N100 billion, which was fully subscribed by institutional investors, reflecting strong confidence in the fund’s structure and objectives.
MoFI had earlier made a sole investment of N150 billion in Series 1, reinforcing the government’s commitment to revolutionizing housing finance.
“The successful close of this pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector,” said Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
He further highlighted the market’s enthusiasm for structured long-term housing solutions, stating:
“The full subscription of the Series 2 offer demonstrates the pent-up demand for a structured long-term housing financing solution and affirms the private sector’s confidence in MREIF.”
With an AA rating from GCR and an Aaa rating from Agusto, MREIF is currently setting itself up for a multi-tranche investment program of N1 trillion.
“Future rounds will focus on broadening investor participation and accelerating housing development,” the regulatory filing revealed.
The fund is structured to seamlessly integrate with commercial and mortgage banks, property developers, and financial institutions to provide long-term financing solutions for Nigeria’s housing market.
Furthermore, the funds that are gathered will help provide low-cost mortgage loans that can be repaid over a period of as long as 20 years with an interest rate of 12%, giving Nigerians easier opportunities to own homes.
As MREIF gears up for future rounds, its goal is to attract more private sector investment, drive large-scale housing development, and enhance Nigeria’s mortgage financing landscape.
The initiative is expected to bridge Nigeria’s housing deficit, provide sustainable financing options, and create a stronger foundation for affordable homeownership across the country.