Fed Govt mulls housing fund expansion, affordable mortgages
The Federal Government has called for the expansion of the MOFI Real Estate Investment Fund to make affordable housing more accessible to Nigerians, as part of efforts to tackle the
- From Nduka Chiejina, Abuja
The Federal Government has called for the expansion of the MOFI Real Estate Investment Fund to make affordable housing more accessible to Nigerians, as part of efforts to tackle the country’s housing deficit.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the call while receiving a delegation from the MOFI Real Estate Investment Fund following a presentation on the programme’s progress and impact.
In a statement from the Ministry’s X handle yesterday, Edun described the initiative as a strong example of how innovation and collaboration can address major national challenges, particularly in the housing sector. He said the government is focused on scaling the fund to reach more Nigerians, especially low- and middle-income earners who struggle to access affordable housing.
The fund, known as MOFI Real Estate Investment Fund, is designed to provide long-term, low-cost mortgage financing at rates below double digits, a development seen as a major shift in Nigeria’s housing finance system.
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Officials said the initiative aligns with the policy direction of President Bola Tinubu, which aims to introduce practical and people-focused economic policies that make better use of the financial system to support inclusive growth.
Earlier in the year, insights into the initiative were provided by the National Coordinator of the MREIF, Sani Yakubu, who explained that the main goal of the fund is to make home ownership more achievable for Nigerians. “The purpose of the fund is to deliver long-term, low-cost mortgages for Nigerians,” he said.
Yakubu noted that the fund is structured as a ₦1 trillion programme registered with the Securities and Exchange Commission (SEC) and will be rolled out in phases. He disclosed that the first tranche of ₦250 billion has already been raised. From this initial funding, mortgage transactions worth about ₦75 billion have been supported, covering over 1,000 housing units across the country.
Beyond the figures, he said the real impact lies in the improved terms being offered to home buyers. Under the scheme, mortgages can run for up to 20 years, which is longer than what most commercial banks offer. The interest rate is fixed at 9.75 per cent, significantly lower than prevailing market rates, while buyers are required to provide only 10 per cent as an initial deposit.
These conditions, he said, could help many Nigerians move from long-term renting to home ownership. Yakubu added that addressing the country’s housing challenge requires attention not only to buyers but also to developers who build the houses.
He explained that the fund includes what he described as off-take guarantees, which assure developers and their financiers that completed houses will have buyers. “If a funder and you give a developer money, we stand ready to give Nigerians to buy the houses,” he said.
He said this approach reduces the risks faced by developers, making it easier for them to secure financing and ensures a steady supply of homes in the market.
The Federal Government said expanding the fund will further strengthen its impact, deepen access to affordable housing and support broader economic growth by stimulating activity in the construction and real estate sectors.
