Nigeria’s Housing Finance Gets a Boost as MOFI Raises ₦100bn from Private Investors
3 min read
Nigeria’s real estate financing landscape has received a major boost as the MOFI Real Estate Investment Fund (MREIF) successfully raised ₦100bn from private investors in its fully subscribed Series 2 issuance. The milestone marks a significant step in mobilising private sector capital to address the country’s housing finance gap.
The latest issuance forms part of MREIF’s ₦250bn pilot fundraising, aimed at unlocking long-term investment for affordable housing projects across Nigeria. The fund, which is backed by the Ministry of Finance Incorporated (MOFI), is structured to provide affordable mortgage financing, risk reduction for developers, and long-tenor repayment plans—a critical intervention in a sector struggling with limited access to finance.
A Vote of Confidence from Institutional Investors
According to a statement issued on Thursday by Sani Yakubu, Executive Director (Coordinator) of MREIF, the Series 2 issuance attracted strong institutional investor participation, reflecting growing confidence in the fund’s structure and long-term potential.
“The MOFI Real Estate Investment Fund has successfully closed its ₦250bn pilot fundraising, attracting strong private sector participation under a ₦100bn issuance tranche,” Yakubu said.
The fund holds an Aaa rating from Agusto & Co. and an AA rating from Global Credit Rating, reinforcing its credibility as a sustainable and market-driven investment platform.
Unlike the first tranche of ₦150bn, which was fully backed by MOFI, the Series 2 issuance drew private sector investors, underscoring its appeal as a structured vehicle for housing finance.
Unlocking Capital for Large-Scale Housing Development
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the full subscription of Series 2 as a sign of pent-up demand for structured housing finance solutions.
“The successful close of this pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector,” Edun stated. “With this initiative, we are unlocking private capital and positioning MREIF as a sustainable, market-driven investment vehicle. The full subscription of Series 2 demonstrates that Nigeria’s private sector is ready to invest in structured, long-term housing finance solutions that will provide affordable homeownership opportunities.”
MREIF is designed to tackle critical barriers in the housing sector by offering:
Affordable mortgage financing with repayment tenors of up to 20 years at interest rates as low as 12%, significantly below commercial lending rates.
Off-take guarantees for developers, reducing financial risks and unlocking capital for large-scale housing projects.
Integration with commercial banks, mortgage providers, and financial institutions, strengthening Nigeria’s long-term housing finance infrastructure.
Next Phase: Scaling Up Private Sector Participation
Managing Director and Chief Executive Officer of MOFI, Dr Armstrong Ume Takang, described the ₦100bn fully subscribed issuance as a vote of confidence in MREIF’s structure.
“MREIF is unlocking new investment frontiers in Nigeria’s housing sector,” he said. “This fully subscribed Series 2 issuance demonstrates investor confidence in the fund’s structure and long-term potential, which MOFI fully supports.”
With MREIF’s ₦1tn multi-tranche investment programme now in motion, the fund’s next phase will focus on expanding private sector participation and accelerating large-scale housing development.
By bridging Nigeria’s housing finance gap, MREIF is expected to play a crucial role in closing the country’s housing deficit, enabling more Nigerians to access affordable homeownership while strengthening the real estate sector’s contribution to economic growth.
About The Author
