Federal Government Launches N250bn Housing Fund to Bridge Finance Gap
The Federal Government has unveiled a transformative N250bn real estate investment fund aimed at addressing Nigeria’s housing finance gap, fostering homeownership, and driving economic growth.
Announced by the Ministry of Finance and Ministry of Finance Incorporated (MOFI), the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) was inaugurated during a signing ceremony in Abuja on December 31, 2024. The event was presided over by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Affordable Housing and Long-Term Financing
Edun underscored the initiative’s potential to redefine housing finance in Nigeria by offering long-term, low-cost mortgage solutions.
“The Federal Government has taken a significant step towards addressing Nigeria’s housing finance gap,” Edun said. “This initiative provides low-cost, long-tenor mortgage financing with repayment terms of up to 25 years, marking a departure from the high-interest, short-term loans currently dominating the market.”
The first phase of the fund, totalling N150bn, will prioritise private sector participation. A further N100bn is expected to follow in the second phase.
Economic Growth and Job Creation
The initiative is aligned with President Bola Tinubu’s vision of fostering homeownership, spurring economic activity, and creating jobs. The fund is designed as a public-private partnership to incentivise developers to construct affordable homes, stimulating growth in the real estate and construction sectors.
In a statement, the Ministry of Finance noted:
“The Ministry of Finance Incorporated Real Estate Investment Fund aims to provide affordable mortgage options to Nigerians while driving economic growth through the housing and construction industries. This bold initiative represents a clear step forward in addressing the housing deficit and improving living standards for millions.”
Transformative Impact on Housing Deficit
Dr. Armstrong Takang, Managing Director of MOFI, described the fund as a critical milestone in tackling Nigeria’s housing challenges and enabling citizens to achieve sustainable homeownership.
“This fund is more than a financing solution; it is a platform for empowerment,” Takang said. “By making mortgage financing accessible, we are giving Nigerians the opportunity to build generational wealth and improve their quality of life.”
The initiative is expected to create a ripple effect across the economy, enhancing job opportunities, increasing commercial activity, and providing a robust framework for addressing the nation’s housing deficit.
As Nigeria grapples with its housing crisis, the MREIF signals a concerted effort by the government to bridge critical gaps while strengthening economic resilience.
