The Federal Government announced that the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) has successfully provided N128 billion in affordable mortgage financing to 1,859 Nigerian families. This initiative spans across 25 states, marking a significant effort to expand access to home ownership in the country.
President Bola Tinubu commended the growing impact of the housing finance initiative, noting that the lack of affordable long-term mortgage financing has been a major obstacle to home ownership in Nigeria. He stated that for years, many Nigerians could afford rent but lacked access to the necessary financing to purchase a home.
Beneficiaries across Nigeria’s six geopolitical zones have accessed mortgage facilities with repayment tenors of up to 20 years. These loans come with a fixed interest rate of 9.75% per annum and require a minimum equity contribution of 10%. These terms are noted as being largely unavailable in Nigeria for nearly six decades.
The MREIF, established in 2024, is a N1 trillion housing finance platform designed to mobilize long-term capital for mortgage lending and address Nigeria’s housing finance deficit. The pilot phase of the initiative includes N250 billion in concessionary and commercial funding, combining government support, private-sector management, and institutional investment.
Beyond the mortgages disbursed, the Fund has unlocked N221 billion in total property value and supported the delivery of 475 housing units through offtake guarantee projects. The average mortgage beneficiary under the scheme is 42 years old, indicating strong demand among working Nigerians.
The Fund is sponsored by the Ministry of Finance Incorporated (MOFI) and managed by ARM Investment Managers Limited. Its Series 2 commercial issuance has received an AAA rating from Agusto & Co. and an AA rating from GCR Ratings, reflecting strong investor confidence.
In a related development, First Bank, in partnership with the Federal Ministry of Housing, is also providing Nigerians with access to home ownership through an affordable mortgage financing scheme. This initiative offers eligible Nigerians government-backed mortgage financing at a competitive 9.75% interest rate, with funding of up to ₦100 million.
