Abuja, Nigeria – In a strategic move to bridge the housing finance gap and stimulate economic growth, the Federal Government has launched the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), a N250 billion initiative aimed at promoting affordable housing and long-term mortgage financing.
The announcement was made during a signing ceremony presided over by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, at the ministry’s office in Abuja on December 31, 2024.
Speaking at the event, Mr. Edun highlighted the transformative potential of the MREIF to address the twin challenges of housing affordability and accessibility in Nigeria. He noted that the fund would offer low-cost mortgage financing with repayment terms of up to 25 years—an unprecedented improvement over the high-interest, short-tenor loans typically available through commercial banks.
“The Federal Government has taken a significant step towards closing the housing finance gap and driving economic growth,” Edun remarked. “This initiative aligns with President Bola Ahmed Tinubu’s vision of fostering homeownership, job creation, and commercial activity in the housing and construction sectors.”
Fund Breakdown and Implementation
The fund’s initial phase, amounting to N150 billion, will focus on driving private sector participation in affordable housing projects. An additional N100 billion will be raised in the second phase to expand its reach and impact.
Described as a public-private partnership, the MREIF aims to incentivize developers to construct affordable homes, thereby creating jobs and spurring economic activity in the real estate and construction industries.
Empowering Generational Wealth
Dr. Armstrong Takang, Managing Director of the Ministry of Finance Incorporated (MOFI), underscored the significance of the initiative in tackling Nigeria’s housing deficit. He emphasized that the MREIF would empower Nigerians to achieve sustainable homeownership and build generational wealth through accessible and affordable mortgage financing.
“This is a transformative step towards reducing Nigeria’s housing deficit and creating opportunities for wealth building,” Dr. Takang stated.
The Federal Government’s bold initiative is expected to redefine the housing and construction sectors, fostering economic development and improving the quality of life for millions of Nigerians.
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