The MOFI Real Estate Investment Fund (MREIF) has disbursed over N140 billion in mortgage financing to more than 2,000 Nigerians across 27 states since operations began in April 2025. This rollout marks one of the largest expansions of formal home financing in the country’s recent history. The fund, backed by the Federal Government, has collaborated with institutions like FirstBank to channel capital into property purchases for households nationwide.
Disbursements and Geographic Reach
MREIF started issuing mortgages in April 2025 after its creation as a government-backed investment vehicle aimed at mobilizing long-term capital for real estate. It has since extended its reach to 27 states, moving beyond Lagos and Abuja. Applicants in Ogun, Oyo, Enugu, Kano, and Kaduna can also access financing if they meet the scheme’s requirements.
Olubiyi Adekunbi, Head of Real Estate Investment at ARM Investment Managers, shared these details during a FirstBank webinar on home ownership pathways. He mentioned that the fastest mortgage transaction under the program took less than three weeks. Approval depends on applicants submitting the required documents and passing due diligence checks.
The initiative addresses a sector long plagued by liquidity issues. For most Nigerians, formal mortgages remain uncommon compared to informal rentals. Access to lower interest rates and longer repayment terms could gradually change how households build wealth. Yet without a corresponding increase in housing supply, demand from this financing may outstrip available stock.
Beneficiaries span all six geopolitical zones, though Lagos and Abuja account for the largest share of applications. The expansion signals an effort to make mortgage processing more predictable while broadening access beyond traditional property markets.
Loan Structure and Financial Performance
Eligible borrowers can secure mortgages of up to N100 million at a 9.75% interest rate, with repayment periods stretching to 20 years. A minimum 10% equity contribution is required, though contributors to the Contributory Pension Scheme may use up to 25% of their Retirement Savings Account balance for this purpose, subject to conditions.
The fund caps financing at N100 million per property. Buyers purchasing properties above that threshold must fund the difference through other sources.
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Supply Gaps and Partnerships
Sani Yakubu, MREIF National Coordinator at the Ministry of Finance Incorporated, noted that Nigeria must deliver at least 700,000 housing units annually to meet demand. Current production stands at roughly 100,000 units yearly. This gap shows the need to tackle both supply and financing challenges.
MREIF has also teamed up with FirstBank to expand mortgage access. The collaboration offers another route for potential homeowners to secure loans of up to N100 million. Such partnerships are vital because banks provide the infrastructure needed to originate, assess, and manage mortgage loans.
Land Documentation and Affordability
Mortgage availability alone cannot resolve Nigeria’s housing finance hurdles. MREIF mandates valid land titles and clear ownership documentation for financed properties. This requirement highlights the ongoing role of land administration in the property market. Poor documentation can disqualify properties from formal financing, limit their marketability, and prevent homeowners from using them as collateral.
Improving land registration and title processing would support mortgage expansion by increasing the number of properties eligible for formal financing. Affordability remains a key issue. While lower mortgage rates help, the cost of the underlying property is equally critical. Construction expenses, land prices, infrastructure costs, and financing fees all influence final housing prices.
If these costs rise faster than household incomes, a growing mortgage market may still leave many unable to qualify or comfortably repay loans. A broader housing strategy must combine mortgage finance with measures to reduce the cost of building homes. Power firms in Nigeria have faced similar challenges, losing billions in unpaid bills that further strain infrastructure development.
Efforts to stabilize housing costs could help ensure financing initiatives like MREIF reach more households.
