Federal Government Launches N100 Billion Real Estate Financing Scheme to Tackle Housing Deficit

What is the Initiative?

The Federal Government of Nigeria has unveiled an N100 billion private sector-driven real estate financing scheme to expand access to affordable housing. This initiative, part of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), marks the second phase (Series 2) of a broader plan to raise N1 trillion for long-term, low-cost mortgage financing.

Why is This Scheme Critical?

Nigeria faces an estimated 20 million housing deficit, with millions struggling to afford homeownership. The MREIF seeks to address this gap by offering mortgage loans at 11–12% interest rates—significantly below commercial bank rates—with repayment periods stretching up to 25 years.

How Does the Financing Work?

The scheme uses a blended finance model, combining public funding (sourced at 1% interest) with private capital to reduce borrowing costs. MOFI is collaborating with asset managers, financial advisers, and issuing houses to raise the N100 billion from capital markets.

Private Sector Role and Economic Impact

Series 2 builds on the success of Series 1, which secured N150 billion, bringing total funding to N250 billion. Private investors are now invited to drive job creation, infrastructure development, and economic growth.

Who is Leading the Initiative?

• Mr. Wale Edun, Minister of Finance, emphasized the government’s commitment to affordable housing, stating: “Series 2 invites private investors to strengthen the economy while helping Nigerians own homes.”

• Dr. Armstrong Takang, CEO of MOFI, highlighted the use of blended finance to create a “sustainable system for affordable homeownership.”

• Dr. Shamsudeen Usman, MOFI Board Chairman, called MREIF a “landmark achievement” aligned with President Tinubu’s “Renewed Hope Agenda.”

When and Where Will This Take Effect?

While no specific launch date was provided, the scheme is already underway as part of Nigeria’s national housing strategy. Projects will prioritize affordable housing developments across the country.

Broader Implications

The initiative aims to:

1. Stimulate job opportunities in construction and real estate.

2. Improve urban and rural infrastructure.

3. Establish a sustainable mortgage market to bridge Nigeria’s housing gap.