The Federal Government has introduced a N250 billion Real Estate Investment Fund under the Ministry of Finance Incorporated (MOFI) to tackle Nigeria’s housing finance challenges, enhance access to affordable housing, and drive economic development.
A press release issued on Tuesday by Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance, revealed that the announcement was made during a signing ceremony held on December 31, 2024. The event, which took place at the ministry’s headquarters in Abuja, was presided over by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.
During his remarks, Edun highlighted the importance of the fund in addressing issues related to housing accessibility and affordability in the country. He stated that the Real Estate Investment Fund would provide long-term, low-interest mortgage options with repayment periods extending up to 25 years. This represents a significant shift from the high-interest, short-term loans commonly offered by commercial banks.
The initial phase of the fund, valued at N150 billion, will prioritize engaging private sector stakeholders, while an additional N100 billion will be raised in the subsequent phase. Edun emphasized that this initiative is in line with President Bola Tinubu’s agenda to promote homeownership, stimulate job creation, and bolster economic growth through the housing and construction industries.
According to the statement, the launch of the fund marks a strategic move by the Federal Government to bridge Nigeria’s housing finance gap. By facilitating access to affordable mortgages, the initiative aims to stimulate the construction of affordable homes, thereby creating employment opportunities and spurring economic activities within the real estate and construction sectors.
The fund, which operates as a public-private partnership, is designed to incentivize property developers to focus on affordable housing projects. This, in turn, is expected to boost commercial activities and generate broader economic benefits.
Dr. Armstrong Takang, Managing Director of MOFI, described the initiative as a game-changer in addressing Nigeria’s housing deficit. He also noted that the fund would enable citizens to achieve sustainable homeownership while fostering wealth creation through accessible mortgage options.
