Federal Govt stakes $75 million on Flutterwave’s $250m IPO
• Mortgage refinancing fund for expansion President Bola Ahmed Tinubu has given approval for the investment of $75 million in Flutterwave, as plans for the deal move closer to completion.
• Mortgage refinancing fund for expansion
President Bola Ahmed Tinubu has given approval for the investment of $75 million in Flutterwave, as plans for the deal move closer to completion.
The investment, which is expected to be executed through the Ministry of Finance Incorporated (MoFI), forms part of Flutterwave’s efforts to raise $250 million through an Initial Public Offering (IPO).
The fintech company, currently valued at over $3 billion, had approached the Federal Government last year to participate in the offer.
Before granting approval, the Federal Government engaged two of the big four global accounting and auditing firms to carry out a detailed review of the company’s financial statements and operations, in a move aimed at ensuring due diligence and strengthening investor confidence.
Sources familiar with the discussions said the request for government participation was part of Flutterwave’s broader strategy to secure sovereign backing and reinforce confidence in Nigeria’s growing technology sector.
According to one of the sources, the move was also intended to project Nigeria’s potential on the global stage.
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“The idea is to show that something good can come out of Nigeria and its promise,” the source said.
The company is also using the IPO to widen ownership and allow more Nigerians to invest in its growth.
“Flutterwave wants to give Nigerians the opportunity to own a piece of the company,” the source added.
There were strong indications that both existing and new institutional investors were showing keen interest in the proposed offer.
Already, some current investors have signalled plans to increase their stakes, while new investors are also positioning to participate.
“It looks like it would be oversubscribed because its potential for growth is enormous,” the source said.
Meanwhile, the Federal Government is considering expanding the Mortgage Refinancing and Equity Investment Fund (MREIF) to accommodate more income and social groups, following its performance so far.
A source at the Ministry of Finance said discussions with stakeholders revealed that the fund has delivered positive results and could achieve greater impact if expanded.
“It has to continue for its broader impact,” the source said.
The source explained that the fund has performed strongly in the market, generating over N25 billion in profit from the N250 billion it raised, with the returns already distributed to investors.
Data from the programme showed that more than N105.06 billion has been disbursed to 1,501 beneficiaries since the second quarter of 2025, while over 2,000 applications are still being processed.
The MREIF digital platform is now fully operational, with more than 4,770 housing units uploaded. Dedicated support lines have also been created to assist users.
Interest in the scheme continues to grow, with over 60,000 expressions of interest recorded from prospective subscribers. In addition, more than 2,000 developers have registered on the platform, which provides access to 122,547 workers across 178 cooperatives.
As part of measures to improve affordability, the fund has reduced mortgage interest rates from 12 per cent to 9.75 per cent and lowered the minimum equity contribution from 20 per cent to 10 per cent.
Officials say these changes are expected to make it easier for more Nigerians to access mortgage financing and participate in the housing market.
