MREIF Secures N250 Billion to Address Nigeria’s Housing Finance Challenge

The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) raised N250 billion to address Nigeria’s housing finance shortage, reflecting robust private sector participation. The initiative includes a N100 billion fully subscribed second series, building on a previous N150 billion effort. The funds aim to provide affordable housing with long-term mortgage options and favorable interest rates, and the initiative is seen as a pivotal transformation for Nigeria’s housing sector.

The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) has successfully raised N250 billion in a pilot fundraising round, reflecting significant interest from the private sector to address Nigeria’s housing finance deficit. This announcement was made by Sani Yakubu, the executive director and co-ordinator of MREIF, emphasizing the participation of institutional investors in the venture.

Included in this fundraising is a N100 billion issuance from the second series, fully subscribed, which indicates strong investor confidence in the fund’s ability to foster long-term housing development in Nigeria. The recent fundraising follows a prior N150 billion subscription, funded entirely by MOFI as the primary sponsor, bringing MREIF closer to its targeted N1 trillion aimed at enhancing access to affordable housing in the nation.

MREIF aims to provide long-term mortgage financing of up to 25 years with interest rates as low as 12 percent, notably below commercial lending rates. Moreover, it offers off-take guarantees to entice more investments in housing projects. Finance Minister Wale Edun described this successful pilot phase as a crucial transformation needed in Nigeria’s housing sector, hinting at substantial market demand for structured housing finance solutions.

He remarked on the full subscription of Series 2, emphasizing it demonstrated clear investor confidence in MREIF as a sustainable investment platform. Likewise, Armstrong Ume Takang, the managing director of MOFI, articulated that the successful outcome underscores investor trust in MREIF’s structure and its potential benefits for the housing sector, aiding in unlocking new frontiers of investment.

MREIF’s multi-tranche program is strategically designed to merge subsidized public funding with market-rate private capital, thereby lowering borrowing costs for potential homeowners. Anticipated future fundraising rounds promise to continue expanding investor engagement and facilitate further development of affordable housing projects.

Substantial progress has been made in addressing Nigeria’s housing finance gap with the successful raising of N250 billion by the MREIF. This funding not only represents significant private sector interest but also illustrates a transformative move towards making affordable housing more accessible in the country. The promising outcomes of investor participation and confidence in the fund’s structure suggest a hopeful trajectory for future housing development initiatives.

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