To address housing sector deficit in the country, the Federal Government has launched a N250 billion real estate investment fund (MREIF) to be delivered by Ministry of Finance Incorporated (MOFI).
The initiative is to provide a low-cost, long-term mortgage financing, and stimulate economic growth through the housing and construction sectors.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who supervised the signing of the agreement in Abuja, said the initiative would address Nigeria’s housing finance gap by offering mortgages with repayment terms of up to 25 years, a statement issued by Director of information in the ministry Mohammed Manga said.
This contrasts sharply with the high-interest, short-tenor loans currently offered by commercial banks.
The first series of the fund, amounting to N150 billion, is expected to drive private sector participation, with the second series set to raise an additional N100 billion. The program aligns with President Bola Ahmed Tinubu’s vision to foster homeownership, create jobs, and support economic development.
Described as a publicprivate 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.
Dr. Armstrong Takang, Managing Director of MOFI, noted that the initiative would enable Nigerians to build generational wealth through sustainable homeownership. Key stakeholders, including government officials, private sector leaders, and financial institutions, attended the signing ceremony, signalling strong support for this transformative programme.
The launch of the MOFI Real Estate Investment Fund marks a significant milestone in Nigeria’s quest for economic growth and development. With its innovative approach to housing finance, this initiative is poised to unlock new opportunities for Nigerians, foster economic development, and leave a lasting legacy for generations to come.
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