Toba Owojaiye reporting
Abuja, Nigeria
The Ministry of Finance Incorporated (MOFI) has successfully secured N100 billion through the MOFI Real Estate Investment Fund (MREIF) to finance affordable housing projects in Nigeria.
Truth Live News gathered that this milestone follows the full subscription of the N150 billion MREIF Series 1 bond in December 2024, and the N100 billion Series 2 offering in February 2025, which was opened exclusively to private investors. With both tranches fully subscribed, total funding under MREIF has now reached N250 billion.
Providing updates in a statement yesterday, MOFI confirmed that the N100 billion Series 2 offering saw strong private sector participation, reflecting increased confidence in structured housing finance solutions.
It stated:
“The N100 billion Series 2 offering was fully subscribed, with strong demand across a broad base of institutional investors, thereby depicting high investor confidence in the Fund’s structure and long-term potential.
“Following MOFI’s sole investment in the NGN150 billion Series 1 offer, private sector participation in Series 2 was resounding, positioning MREIF as a leading platform for mobilising capital into Nigeria’s real estate sector.
“The fund is structured to deliver competitive returns while enabling affordable homeownership through long-term, low-cost mortgage financing at scale.”
The Minister of Finance, Wale Edun, described the successful close of this phase as a pivotal moment for Nigeria’s housing sector transformation:
“The full subscription of Series 2 offer demonstrates the pent-up demand for a structured, long-term housing finance solution and affirms the private sector’s confidence in MREIF as a sustainable investment vehicle.”
Similarly, MOFI’s Managing Director, Armstrong Takang, emphasized that MREIF was designed to address both supply and demand constraints in Nigeria’s real estate market.
“This investment gives access to affordable mortgage financing with up to 20-year repayment tenors at interest rates as low as 12%, significantly below commercial rates.”
Takang further highlighted that with MREIF’s N1 trillion multi-tranche programme now in motion, future rounds will focus on broadening investor participation and accelerating housing development.
“MREIF is unlocking new investment frontiers in Nigeria’s housing sector. This fully subscribed series demonstrates investor confidence in the Fund structure and long-term potential, which MOFI fully supports,” he added.
He also stated that the fund is structured to integrate seamlessly with commercial banks, mortgage institutions, and property developers to scale long-term housing finance solutions.
The success of Nigeria’s MREIF initiative aligns with a broader global trend in real estate investment. Across major markets, investors are increasingly seeking stable, income-generating assets amid fluctuating interest rates and economic uncertainty.
In developed economies like the United States, United Kingdom, and Germany, real estate investment funds (REITs) have remained attractive due to long-term cash flow potential and their ability to hedge against inflation.
In emerging markets, institutional investors are actively channeling capital into affordable housing projects, driven by rising urbanization, housing deficits, and government incentives. According to a 2024 World Bank report, the global affordable housing finance market is projected to exceed $8 trillion by 2030, with Sub-Saharan Africa witnessing one of the fastest growth rates.
For Nigeria, MREIF’s fully subscribed series signals growing investor confidence, reinforcing the country’s position as a frontier market for structured real estate financing. The fund’s ability to attract capital, despite macroeconomic challenges, highlights Nigeria’s real estate potential as an alternative asset class for institutional and private investors.
With N250 billion already raised and a N1 trillion funding programme in progress, MREIF is poised to reshape Nigeria’s housing finance landscape. The strong private-sector participation in Series 2 underscores investor confidence, while the fund’s structure provides a model for scaling affordable housing finance.
As Nigeria navigates its housing deficit and seeks sustainable finance models, MREIF’s success sets a precedent for leveraging capital markets to drive real estate development, aligning the country with global trends in institutional investment in housing infrastructure.