MREIF has raised N250 billion in a fundraising round to tackle Nigeria’s housing finance shortage, with strong private sector participation indicating confidence in its structure. This funding supports long-term mortgage solutions and aims to expand affordable housing access, bringing the total raised closer to N1 trillion.
The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) has successfully raised N250 billion in a pilot fundraising initiative aimed at addressing Nigeria’s persistent housing finance deficit. This was revealed in a statement by Sani Yakubu, the Executive Director (Coordinator) of MREIF. Strong participation from the private sector has underscored the significance of this fundraising effort, which included a fully subscribed N100 billion issuance in the second series targeting institutional investors.
The latest fundraising follows a prior N150 billion subscription from Series 1, supported entirely by MOFI, which serves as the anchor investor. Thus far, the cumulative amount raised brings MREIF closer to its ambitious target of N1 trillion, intended to enhance access to affordable housing across Nigeria. The MREIF offers long-term mortgage financing solutions with repayment terms extending up to 25 years and interest rates starting as low as 12 percent, which is notably lower than current commercial lending rates.
Additionally, the fund provides off-take guarantees to developers, ensuring greater investment in residential projects. Wale Edun, Nigeria’s Finance Minister, hailed the successful pilot phase as a vital transformation for the housing sector, indicating substantial investor interest in structured long-term housing finance. He stated that the full subscription of the second series reflects significant demand for such financial solutions, cementing the private sector’s belief in MREIF’s potential as a sustainable investment vehicle.
Armstrong Ume Takang, Managing Director of MOFI, echoed this sentiment by emphasizing the strong investor confidence in the fund’s structure and prospects. He remarked that the MREIF is opening new investment opportunities in Nigeria’s housing sector with the fully subscribed series, demonstrating a commitment to its long-term objectives. MREIF’s multi-tranche program aims to integrate subsidized public funding with market-rate private capital to reduce borrowing costs for potential homeowners, with future fundraising rounds planned to enhance investor engagement and expedite affordable housing initiatives.
The successful fundraising of N250 billion by the MREIF marks a pivotal step in addressing Nigeria’s housing finance gap, demonstrating robust private sector interest and confidence in long-term solutions. With this substantial capital, the MREIF aims to facilitate affordable housing access and stimulate investment in residential development. The initiative signifies a transformative approach to Nigeria’s housing sector, driving investor participation for future expansion.
Original Source: www.premiumtimesng.com
