MOFI’s N1trn housing fund deepens market presence with NGX listing

By Chukwuma Umeorah

The MOFI Real Estate Investment Fund (MREIF), a N1 trillion shelf programme sponsored by Ministry of Finance Incorporated, has strengthened its presence in the capital market with its listing on the Nigerian Exchange Limited (NGX), as the fund closed 2025 with N270.29 billion in net asset value and N70.72 billion disbursed to support mortgage financing nationwide.

The Fund, structured as a closed-end real estate investment trust and managed by ARM Investment Managers Limited, commenced operations on March 17, 2025, following full subscription and regulatory clearance of its N100 billion Series 2 issuance. It is regulated by the Securities and Exchange Commission.

According to its Q4 2025 investor report, MREIF disbursed N23 billion in the fourth quarter alone, financing 336 mortgage applications. Cumulative disbursements stood at N70.72 billion as at December 31, 2025, with 1,082 mortgages originated across 21 states and the Federal Capital Territory.

The Fund expanded its network of Eligible Financial Institutions (EFIs) to 18, comprising eight commercial banks and 10 mortgage banks, aimed at providing long-term, single-digit mortgage financing to eligible homebuyers.

In addition to retail mortgage support, the Fund executed two offtake guarantees valued at N5 billion in favour of developers during the quarter, serving as credit enhancement to facilitate construction finance for residential projects.

It’s financial statements show that MREIF recorded total income of N36.54 billion for the 10-month period ended December 31, 2025, driven largely by N35 billion in interest income on financial instruments. Profit before distribution stood at N25.35 billion.

The Fund declared a final distribution of N9.72 per unit to eligible unitholders, bringing total distribution for the year to N22.82 billion. This translated to an annualised yield of 19.28 per cent for commercial investors. Net asset value per unit closed at N101.02.

As of year-end, total assets stood at N270.33 billion, with N68.14 billion in mortgage loans and N127.30 billion in financial assets at redemptive value. Net assets attributable to unitholders were N252.54 billion.

The Fund, rated Aaa by Agusto & Co and AA by GCR, is benchmarked against the 10-year FGN bond plus 75 basis points on commercial investment and operates a distribution policy of up to 90 per cent of net income payable semi-annually.

Market analysts note that the listing of the housing-focused fund on NGX provides institutional and retail investors with exposure to structured real estate finance while channeling long-term capital into efforts to address Nigeria’s housing deficit.