The Federal Government of Nigeria is set to formalize a major strategic policy shift tomorrow, Tuesday, November 11, 2025, with the listing of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF) on the Nigerian Exchange (NGX).
This N1 trillion program, aimed squarely at resolving the nation’s severe housing deficit, marks the government’s transition from direct budgetary spending to a market-based social investment model powered by public-private collaboration.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, is scheduled to lead the official listing. The MREIF is structured as a Real Estate Investment Trust (REIT) with a multi-tranche program size, opening a critical gateway for both institutional and direct retail investors to participate in Nigeria’s long-term housing finance ecosystem.
The MREIF is not just a funding mechanism; it is a signal of a mature financial market utilizing sophisticated instruments to tackle pressing social challenges.
The core mandate of the MREIF is to make homeownership attainable for low- and middle-income Nigerians by offering unprecedented mortgage terms. The fund is designed to provide long-term mortgages—with repayment periods of up to 25 years—featuring a remarkably low, single-digit interest rate of 9.75% per annum. This rate represents a seismic shift from the prevailing double-digit commercial lending rates that have historically constrained housing affordability.
Dr. Armstrong Takang, Managing Director of MOFI, confirmed that the fund is structured to continually source cheaper financing from global and local markets. This strategy, underpinned by a crucial credit line secured by the Family Homes Funds Limited (FHFL) from the African Development Bank (AfDB), enables the fund to pass on cost benefits to citizens via reduced mortgage rates. Under the scheme, eligible citizens, including civil servants, require only a 10 per cent equity contribution, further lowering the barrier to entry.
Beyond the immediate social impact, the NGX listing of the successfully issued initial tranches, totaling N250 billion, carries profound economic implications for Nigeria’s financial market. This new asset class provides a regulated platform for Pension Fund Administrators (PFAs), insurance firms, and private investors—both local and in the diaspora—to deploy long-term capital into a secure, government-backed asset. Allowing investors to trade the fund’s units on the NGX will significantly improve liquidity within the housing finance ecosystem and deepen Nigeria’s capital market.
Furthermore, as a publicly listed REIT, MREIF will be subjected to the rigorous NGX disclosure requirements, mandating periodic financial reporting and strong investor oversight. This enhanced transparency is expected to solidify investor confidence in the sustainability of the public-private partnership.
The fund’s financial structure has already received high validation, evidenced by a AAA rating from Agusto & Co and an AA rating from Global Credit Ratings (GCR) for its commercial tranches, attesting to its robust risk management and financial credibility, which will attract more institutional investment.
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The MREIF operates as a dual-sided intervention, addressing both demand and supply constraints in the real estate sector. On the demand side, it facilitates low-cost mortgages through eligible financial institutions (EFIs). On the supply side, it offers conditional off-take guarantees to developers, serving as a credit enhancement mechanism to enable them to secure construction finance and accelerate the delivery of affordable homes.
Initial data shows positive momentum, with over NGN 8 Billion already disbursed across 173 mortgage applications in various states as of June 2025. This successful initial phase underscores the viability of the blended finance model.
MREIF’s listing institutionalizes the Federal Government’s commitment to utilizing the capital market for social infrastructure investment, paving the way for a more stable and financially inclusive real estate sector. The success of this initiative will serve as a crucial test case for future asset optimization programs across Nigeria.
