From Adanna Nnamani, Abuja
To bridge Nigeria’s housing deficit, the federal government, through the MOFI Real Estate Investment Fund (MREIF), has successfully secured N250 billion in its pilot fundraising initiative.
MREIF further announced that its N100 billion Series 2 issuance was fully subscribed, highlighting strong investor confidence and the pressing need for structured, long-term housing finance solutions in the country.
In a statement issued by its Executive Director, Sani Yakubu, on Thursday, the organisation explained that the initiative is designed to tackle both housing supply and affordability constraints by providing affordable mortgage financing with up to 20-year repayment tenors and interest rates as low as 12%.
The statement quoted the Minister of Finance and Coordinating Minister of the Economy, Wale Edun as saying, “The successful close of this pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector.
Edun added that, “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.”
On expanding private sector participation, MREIF noted that its NGN1 trillion multi-tranche programme is now underway and that future rounds will focus on broadening investor participation and accelerating housing development.
The Fund said it is structured to integrate seamlessly with commercial and mortgage banks, developers and financial institutions to scale long-term housing finance.
Additionally, it noted that investor engagement opportunities are now open, and that institutional partners are encouraged to explore participation in upcoming rounds.