FG has unveiled N250bn fund to give affordable housing
Minister of Finance and Coordinating Minister for the Economy, Olawale Edun
FG has unveiled N250bn fund to give affordable housing
The Federal Government has launched a N250bn Ministry of Finance Incorporated Real Estate Investment Fund to bridge Nigeria’s housing finance gap, promote affordable housing, and stimulate economic growth.
According to a press statement on Tuesday by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, the initiative was announced during a signing ceremony presided over by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the ministry’s office in Abuja on 31 December 2024.
Speaking at the event, Edun underscored the fund’s potential to address the challenges of housing affordability and accessibility in Nigeria.
He explained that the MREIF would offer long-term, low-cost mortgage financing with repayment terms of up to 25 years, a significant departure from the short-term, high-interest loans typically offered by commercial banks.
FG has unveiled N250bn fund to give affordable housing.
The first phase of the fund, totalling N150bn, will prioritise private sector participation, while an additional N100bn will follow in the second phase.
Edun noted that the initiative aligns with President Bola Tinubu’s vision to promote homeownership, create jobs, and boost economic growth through the housing and construction sectors.
The statement read, “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 Abuja, the Honourable 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 available through commercial banks.
“The first series of the fund, totalling N150bn, is expected to drive private sector participation, while the second series will raise an additional N100bn. The programme aligns with President Bola Ahmed Tinubu’s vision to foster homeownership, create jobs, and support economic development.
“Described as a public-private partnership, the fund aims to incentivise developers to build affordable homes, thereby creating jobs and increasing commercial activity in the real estate and construction industries.”
In the statement, Dr Armstrong Takang, Managing Director of MOFI, described the fund as a transformative step in addressing Nigeria’s housing deficit while enabling Nigerians to achieve sustainable homeownership.
He emphasised that the initiative would empower citizens to build generational wealth through accessible mortgage financing.
