Real estate fund targets affordable housing, economic growth  

The Federal Government has launched the N250bn Ministry of Finance Incorporated Real Estate Investment Fund (MREIF), a project designed to transform housing accessibility and affordability.

The initiative, unveiled during a signing ceremony in Abuja on December 31, 2024, underscores the government’s commitment to addressing the nation’s housing deficit while stimulating economic growth. The event was presided over by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

Highlighting the fund’s significance, Edun emphasized its role in bridging the gap in housing finance. He explained that the MREIF offers long-term, low-cost mortgage financing with repayment terms of up to 25 years an alternative to the high-interest, short-term loans currently available from commercial banks.

The fund’s first phase, valued at N150 billion, is set to prioritize private sector engagement, with an additional N100 billion earmarked for a subsequent phase. This structure not only supports housing affordability but also aligns with President Bola Tinubu’s agenda to promote homeownership, create jobs, and boost the economy through the housing and construction sectors.

“The Federal Government has taken a significant step towards addressing Nigeria’s Housing Finance Gap with the launch of the Ministry of Finance Incorporated Real Estate Investment Fund, a N250bn initiative designed to provide low-cost, long-term mortgage financing and stimulate economic growth through the housing and construction sectors.

“Presiding over the signing ceremony in his office in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun emphasised that the initiative addresses Nigeria’s housing finance gap by offering mortgages with repayment terms of up to 25 years. This contrasts sharply with the high-interest, short-tenor loans currently offered by commercial banks.

“The first series of the fund, amounting to N150bn, is expected to drive private sector participation, with the second series set to raise an additional N100bn.

The programme aligns with President Bola Tinubu’s vision to foster homeownership, create jobs, and support economic development,” the statement read.

Described as a public-private partnership, the fund is expected to incentivize real estate developers to focus on affordable housing projects, thereby spurring job creation and increased commercial activity in the construction industry.

Speaking on the fund’s transformative potential, the Managing Director of the Ministry of Finance Incorporated, Dr. Armstrong Takang, said, the initiative is a game-changer in addressing Nigeria’s housing deficit. By providing accessible mortgage financing, we are enabling Nigerians to achieve sustainable homeownership and build generational wealth.

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