The Ministry of Finance Incorporated (MOFI) is introducing a shariah-compliant, non-interest version of its ₦1 trillion Real Estate Investment Fund (MREIF) as part of efforts to make homeownership more accessible for all Nigerians, including those living abroad.
This new option will operate alongside the existing MREIF, which has already started providing single-digit interest mortgages through selected financial institutions. The initiative is a central component of the federal government’s plan to tackle Nigeria’s housing deficit, currently estimated at 20 million units.
The Chief Executive Officer of MOFI, Armstrong Ume Takang, announced the development at the Africa International Housing Show in Abuja, highlighting that the diaspora-inclusive, non-interest version is meant to align with the financial and ethical preferences of many Nigerians abroad.
Since its launch, MREIF has slashed its interest rate from 12% to 9.75% and has disbursed loans via institutions like Access Bank, FCMB, Stanbic IBTC, AG Mortgages, and Infinity Trust Mortgage Bank. These institutions facilitate mortgage origination, allowing individuals and developers to access long-tenor loans under more affordable terms.
Structured as a public-private partnership and regulated by the Securities and Exchange Commission (SEC), the fund combines government backing with private capital and oversight. Already, ₦250 billion has been raised, and the fund is operational in three of Nigeria’s six geopolitical zones. More financial partners are being added to ensure wider national reach.
With a AAA rating from Agusto & Co and an AA from Global Credit Ratings (GCR), MREIF is managed independently of MOFI. Partners such as ARM, VETIVA, Olaniwun Ajayi, and First Bank of Nigeria provide fund management, legal, and advisory services, ensuring the structure is both investment-grade and market-regulated.
Beyond mortgages for home seekers, MREIF also backs developers by offering offtake guarantees. These guarantees assure developers of sales by matching them with pre-approved buyers who already have mortgage financing, thereby strengthening the supply chain within the housing sector.
Takang explained that MREIF was built to address long-standing issues in Nigeria’s housing finance ecosystem, such as limited liquidity, poor governance, and underdeveloped secondary mortgage markets.
“This isn’t just another fund,” he said. “It’s a structured solution designed to reset how housing finance works in Nigeria.”
By introducing non-interest investment options and involving the diaspora, MOFI is widening the pool of capital and participation in the housing market, aligning the program with President Bola Tinubu’s Renewed Hope Initiative and the administration’s broader goal of delivering affordable and inclusive housing across the country.
