The Federal Government of Nigeria has launched a N250 billion Real Estate Investment Fund through the Ministry of Finance Incorporated.
This was disclosed in a statement signed by the Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga on Tuesday.
According to the statement, The initiative, announced on December 31, 2024, by Finance Minister Wale Edun, aims to address the nation’s housing finance gap, promote affordable housing, and drive economic growth.
Edun emphasized that the N250 billion Ministry of Finance Incorporated Real Estate Investment Fund aims to tackle Nigeria’s housing affordability and accessibility issues.
He said the fund will offer long-term, low-cost mortgage financing with repayment terms of up to 25 years, addressing the limitations of the short-tenor, high-interest loans typically provided by commercial banks.
The N250 billion Ministry of Finance Incorporated Real Estate Investment Fund will roll out in two phases: an initial N150 billion focused on private sector participation, followed by a second phase of N100 billion.
The minister noted that the initiative supports President Bola Tinubu’s agenda to promote homeownership, generate employment, and boost economic growth through housing and construction.
The statement read, “The Federal Government has taken a significant step towards addressing Nigeria’s Housing Finance Gap with the launch of the Ministry of Finance Incorporated Real Estate Investment Fund, a N250bn initiative designed to provide low-cost, long-term mortgage financing and stimulate economic growth through the housing and construction sectors.
“Presiding over the signing ceremony in his office in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun emphasised that the initiative addresses Nigeria’s housing finance gap by offering mortgages with repayment terms of up to 25 years. This contrasts sharply with the high-interest, short-tenor loans currently offered by commercial banks.
“The first series of the fund, amounting to N150bn, is expected to drive private sector participation, with the second series set to raise an additional N100bn.
“The programme aligns with President Bola Tinubu’s vision to foster homeownership, create jobs, and support economic development.
“Described as a public-private 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.”
In the statement, the Managing Director of MOFI, Dr Armstrong Takang, described the fund as a transformative step in addressing Nigeria’s housing deficit while enabling Nigerians to achieve sustainable homeownership.
Takang stressed that the initiative would enable citizens to build generational wealth by providing accessible and affordable mortgage financing, fostering long-term economic empowerment.
