The MREIF has raised N250 billion in a fundraising effort to combat Nigeria’s housing finance gap, with strong participation from institutional investors. This funding supports long-term mortgage solutions and aims to increase affordable housing access, moving towards an overall target of N1 trillion. The initiative has received affirmations from key stakeholders regarding its potential in transforming the housing sector.
The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) has successfully raised N250 billion in a pilot fundraising initiative aimed at addressing Nigeria’s significant housing finance deficit. This initiative, announced by Sani Yakubu, MREIF’s Executive Director, saw strong participation from the private sector, reflecting confidence in the fund’s potential to promote long-term housing development.
The fundraising involved a N100 billion issuance in its second series, which received full subscription from institutional investors. Earlier, MREIF had raised N150 billion in its first series, now totaling N250 billion—bringing it closer to its overarching goal of N1 trillion for expanding affordable housing access in Nigeria.
MREIF provides long-term mortgage financing options with repayment terms of up to 25 years and interest rates starting at 12 percent, significantly lower than current commercial rates. It also offers guarantees for off-take agreements to encourage more investments in residential projects.
Wale Edun, Nigeria’s Finance Minister, characterized this pilot phase as a much-needed transformation in the housing sector, emphasizing that strong investor engagement highlighted the urgent demand for structured housing finance solutions.
Armstrong Ume Takang, Managing Director of MOFI, remarked that the fully subscribed second series indicates investor confidence in the fund’s structure and its long-term viability. He stressed MREIF’s role in unlocking new investment opportunities in Nigeria’s housing sector.
The MREIF scheme is designed to merge subsidized public financing with private sector investment at market rates, aiming to reduce borrowing costs for future homeowners. Upcoming funding rounds are anticipated to increase investor involvement and hasten the development of affordable housing.
In summary, the MREIF has successfully raised significant capital to address Nigeria’s housing finance challenges. Through strong private sector engagement and confidence in its structure, the fund is poised to facilitate affordable housing access across the nation. With future initiatives planned, MREIF aims to accelerate housing development while providing sustainable financing options.
Original Source: www.premiumtimesng.com
