By SpringsNewsNG

The Ministry of Finance Incorporated (MOFI) has launched a ₦100 billion Series 2 offering under its Real Estate Investment Fund (MREIF), a move aimed at addressing Nigeria’s housing deficit of over 20 million units.

This latest funding follows the ₦150 billion Series 1 launched late last year, bringing the total raised under the fund to ₦250 billion. The initiative targets ₦1 trillion in financing to transform the country’s housing sector and expand homeownership through affordable, long-term funding.

Affordable Mortgage Financing

The fund offers mortgages with repayment terms of up to 25 years at interest rates of 11% to 12%, significantly lower than commercial loan rates. This is expected to ease homeownership for many Nigerians.

At the launch event in Abuja, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, emphasized that the initiative aligns with President Tinubu’s Renewed Hope Agenda.

“By leveraging blended finance, we are creating a sustainable framework for affordable homeownership that benefits all Nigerians,” Edun stated.

He added that once the funding is actualized, MOFI will begin issuing mortgages through eligible financial institutions by the end of the month.

MOFI’s Role in Housing Sector

Edun clarified that MOFI will not build houses or issue direct mortgages. Instead, its role is to develop financial instruments that encourage private sector investment in the housing sector. This approach is expected to boost investor confidence and mobilize significant resources to tackle the housing crisis.

Shamsuddeen Usman, Chairman of MOFI’s Board, described the initiative as a landmark achievement for Nigeria’s housing sector.

“The Renewed Hope Agenda focuses on sustainable homeownership for Nigerians, and MREIF is a major driver of this vision,” he said.

He assured Nigerians that this is just the beginning of transformative initiatives from MOFI aimed at strengthening the economy.

Market and Regulatory Support

Financial experts believe the initiative will stimulate further investments and enhance Nigeria’s housing sector.

Agama Emomotimi, Director-General of the Securities and Exchange Commission (SEC), stressed that such initiatives promote financial inclusion and adherence to global best practices.

“We are bringing the capital market to help drive Nigeria’s development,” he noted.

With growing private sector participation and government-backed financial structures, MOFI’s housing fund could reshape Nigeria’s real estate landscape, providing millions of Nigerians with affordable homeownership opportunities.