Ministry of Finance Incorporated (MOFI) says Nigerians have started accessing affordable long-term mortgage facilities at 9.75 per cent.
The mortgage facilities extend as long as 20 years, a radical initiative aimed at bridging the country’s estimated 20 million units housing gap.
Chief Executive Officer, (MOFI), Dr. Armstrong Takang, said several beneficiaries across geopolitical zones have successfully accessed the single-digit, long-term mortgage fund, barely one month after it was launched.
He explained that the newly established MOFI Real Estate Investment Fund (MREIF), a Securities and Exchange Commission (SEC)-regulated housing fund designed to strengthen Nigeria’s housing finance sector, radically redefining the housing sector.
Takang made the disclosure at the Africa International Housing Show (AIHS) in Abuja.
He described the MREIF as a much-needed, long-overdue intervention in the housing sector with real capacity to radically transform the entire housing value chain and deliver long-term impact.
According to him, through innovative financing, the federal government is poised to radically bridge the housing gap in Nigeria under a scheme designed for sustainability and wide-ranging impact.
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He said the N1 trillion SEC-approved and regulated MREIF was structured to provide market-aligned mortgage solutions and tackle the systemic issues that have long plagued Nigeria’s housing sector—such as short mortgage tenors, high interest rates, and poor refinancing options.
He said: “MREIF was designed to hedge against liquidity challenges, corporate governance issues, accessibility barriers, and the perennial challenge of sustaining initiatives for the long-term”.
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He explained that the Fund operates under a Public-Private Partnership (PPP) structure with MOFI serving only as the sponsor. The Fund itself is managed independently by a Fund Manager and is open to institutional investors. It enjoys top-tier credit ratings—a AAA rating from Agusto and an AA rating from GCR—boosting its credibility in financial markets.
He pointed out that MREIF provides not only mortgages to homebuyers but also offtake guarantees to developers, ensuring that properties are purchased and projects are commercially viable.
