MOFI ‘s Real Estate Investment Fund Secures N250bn Initial Capital Raising

* Future rounds of NItrn Fund to focus on more investor participation

Ndubuisi Francis in Abuja 

The Ministry of Finance Incorporated (MOFI), Thursday announced that Series 2 of its N250 billion initial capital raising for the NI trillion multi-tranche Real Estate Investment Fund (MREIF) is now fully subscribed, signalling pent-up appetite for housing finance.

MREIF is a Securities and Exchange Commission (SEC)-approved and regulated fund designed to expand homeownership and strengthen Nigeria’s housing drive.

The Executive Director (Co-ordinator), MREIF, Sani Yakubu, said: “The MOFI Real Estate Investment Fund (MREIF) has successfully closed its NGN250 billion pilot fundraising, attracting strong private sector participation under a NGNI00 billion issuance tranche.

“With an Aaa rating from Agusto and an AA rating from GCR, MREIF has established itself as a highly credible, market-driven investment platform to address Nigeria’s housing finance gap. 

“The NGNIOO billion Series 2 issuance was fully subscribed, with strong demand across a broad base of institutional investors, thereby depicting high investor confidence in the Fund’s structure and long-term potential

market confidence and institutional backing.

“Following MOFl’s sole investment in the NGN150 billion Series 1 offer, private sector participation in Series 2 was resounding, positioning MREIF as a leading platform for mobilising capital into Nigeria’s real estate sector.” 

He added that the fund is structured to deliver competitive returns while enabling affordable homeownership through long-term, low cost mortgage financing at scale.

The statement also quoted the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, as saying: “The successful close of this pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector.

“The full subscription of Series 2 offer demonstrates the pent-up demand for a structured, long-term housing finance solution,  and affirms the private sector’s confidence in MREIF as a sustainable investment vehicle.”

MREIF is configured to address both housing supply and demand constraints, and is expected to offer affordable mortgage financing with up to 20-year repayment tenors at interest rates as low as 12 per cent, significantly below commercial rates.

It is also designed to off-take guarantees for developers, unlocking financing for large-scale housing projects.

Commenting, the Managing Director/CEO of MOFI, Dr. Armstrong Ume Takang, said: “MREIF is unlocking new investment frontiers in Nigeria’s housing sector.

 “This fully subscribed series demonstrates investor confidence in the Fund structure and long-term potential, which MOFI fully supports.”

On next steps, which will focus on expanding private sector participation, the statement explained that with MRElF’s NI trillion multi-tranche programme is now underway, while future rounds will focus on broadening investor participation and accelerating housing development. 

The fund is structured to integrate seamlessly with commercial and mortgage banks, developers and financial institutions to scale long-term housing finance.

MOFI stated that investor engagement opportunities are now open, and that institutional partners are encouraged to explore participation in upcoming rounds.

By bringing together public and private sector capital, MREIF aims to make affordable housing more accessible to Nigerians while supporting economic growth. 

“With N250 billion already raised, MREIF is a key driver of investment,” the statement said.

MOFI had last December said it had subscribed to the N150 billion Series 1 offering under the MOFI Real Estate Investment Fund (MREIF) as the sponsor and anchor investor. 

Last month, it launched the N100 billion Series 2 offering to raise subscriptions to N250 billion, a build-up from the successful N150 billion Series 1 subscription earlier launched in 2024.