The Federal Government, through the Ministry of Finance Incorporated (MOFI), has commenced the rollout of long-term mortgage loans for Nigerians at a competitive single-digit interest rate of 9.75%.
The initiative is designed to tackle the country’s housing deficit, currently estimated at 20 million units, by offering affordable home financing with repayment terms of up to 20 years.
MOFI’s Chief Executive Officer, Dr. Armstrong Takang, revealed that just weeks after the programme’s launch, beneficiaries across Nigeria’s geopolitical zones have already begun accessing the facility. The scheme is backed by the MOFI Real Estate Investment Fund (MREIF), a Securities and Exchange Commission (SEC)-regulated fund established to revolutionize housing finance in Nigeria.
Speaking at the Africa International Housing Show (AIHS) in Abuja, Dr. Takang described MREIF as a vital and overdue solution aimed at strengthening the housing sector and positively impacting the housing value chain over the long term.
With a capital base of ₦1 trillion, the fund is structured to offer market-aligned mortgage options while addressing persistent issues such as short loan tenures, high interest rates, weak refinancing systems, and unsustainable housing delivery models.
“MREIF is built to overcome liquidity shortfalls, governance lapses, access limitations, and the ongoing difficulty of maintaining long-term initiatives,” Dr. Takang stated.
Operating under a Public-Private Partnership (PPP) model, MOFI serves solely as the fund’s sponsor, while professional fund managers independently oversee operations. The fund is open to institutional investors and has earned top-tier credit ratings—AAA from Agusto and AA from Global Credit Rating (GCR)—boosting its credibility in financial markets.
Beyond providing mortgage loans, MREIF also supports housing developers with offtake guarantees, helping ensure that completed properties are successfully absorbed by the market and that projects remain financially viable.
Dr. Takang emphasized that the federal government, through innovative and sustainable financing, is committed to closing the housing gap and transforming access to homeownership for millions of Nigerians.
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