MOFI, at 9.75%, opens single-digit housing loans
Dr. Armstrong Takang
MOFI, at 9.75%, opens single-digit housing loans
Nigerians have started accessing affordable long-term mortgage facilities at 9.75 per cent.
The mortgage facilities extend as long as 20 years, a radical initiative aimed at bridging the country’s estimated 20 million units housing gap.
Chief Executive Officer, Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, yesterday confirmed that several beneficiaries across geopolitical zones have successfully accessed the single-digit, long-term mortgage fund, barely one month after it was launched.
He explained that the newly established MOFI Real Estate Investment Fund (MREIF), a Securities and Exchange Commission (SEC)-regulated housing fund designed to strengthen Nigeria’s housing finance sector, radically redefining the housing sector.
Takang spoke at the Africa International Housing Show (AIHS) in Abuja.
He described the MREIF as a much-needed, long-overdue intervention in the housing sector with real capacity to radically transform the entire housing value chain and deliver long-term impact.
According to him, through innovative financing, the federal government is poised to radically bridge the housing gap in Nigeria under a scheme designed for sustainability and wide-ranging impact.
He said that the N1 trillion SEC-approved and regulated MREIF was structured to provide market-aligned mortgage solutions and tackle the systemic issues that have long plagued Nigeria’s housing sector—such as short mortgage tenors, high interest rates, and poor refinancing options.
He said: “MREIF was designed to hedge against liquidity challenges, corporate governance issues, accessibility barriers, and the perennial challenge of sustaining initiatives for the long-term”.
He explained that the Fund operates under a Public-Private Partnership (PPP) structure with MOFI serving only as the sponsor. The Fund itself is managed independently by a Fund Manager and is open to institutional investors. It enjoys top-tier credit ratings—a AAA rating from Agusto and an AA rating from GCR—boosting its credibility in financial markets.
He pointed out that MREIF provides not only mortgages to homebuyers but also offtake guarantees to developers, ensuring that properties are purchased and projects are commercially viable.
“The MREIF model is a credible, market-driven investment platform built to close Nigeria’s housing finance gap. It issues out single-digit mortgages through financial partners over a 20-year period, thereby bringing down the cost of home ownership,” Takang said.
He noted that Nigeria’s housing deficit was estimated at about 20 million units, with traditional challenges such as prohibitive interest rates, short repayment tenors, and shallow secondary mortgage markets making home ownership unattainable for many Nigerians.
He added that MREIF’s corporate governance and financial structure replicate global best practices, positioning the Fund to attract both domestic and foreign institutional investors, including Nigerians in the diaspora.
Takang pointed out that in recognition of the broad demand for ethical financial instruments, the federal government is working to roll out Sharia-compliant, non-interest mortgage options, further expanding access to Islamic finance-compliant citizens.
He commended President Bola Tinubu for providing the leadership and vision behind the Renewed Hope Housing Initiative that inspired the MREIF, and also acknowledged the role of private sector collaborators who have helped drive the Fund to this stage.
He said: “With N250 billion already raised and mortgage finance disbursements made across three geographical zones, MREIF is already proving itself as a vital instrument for long-term housing finance and national economic growth”.
He added that initiative’s expansion plans include onboarding more banks, integrating non-interest mortgage products, and tapping into diaspora funding streams—all with the aim of making affordable housing a reality for more Nigerians.
MREIF had cut its interest rate from 12 per cent to 9.75 per cent. Eligible financial institutions (EFIs) currently included Access Bank, FCMB, Stanbic IBTC, Providus Bank, Union Bank, AG Mortgages, Infinity Trust Mortgage Bank, LivingTrust Mortgage Bank, and Homebase Mortgage Bank.
Takang said more primary mortgage institutions and commercial banks are currently being onboarded to expand the reach.
The development is a follow-up to the mortgage scheme launched by the federal government in June 2025, targeting civil servants and the larger public with housing finance at rates below 10 per cent.
