Federal Government’s Mortgage Reforms Help 700 Nigerians Become Homeowners in Six Months

More than 700 Nigerians have transitioned from renters to homeowners in just six months, following the Federal Government’s landmark mortgage reforms implemented through the Ministry of Finance Incorporated (MOFI). The achievement marks a significant shift in Nigeria’s housing landscape, which has long struggled with high interest rates, slow mortgage processing, and a deficit of more than 28 million homes.

At the centre of this transformation is the MOFI Real Estate Investment Fund (MREIF), a ₦1 trillion Securities and Exchange Commission (SEC)-registered fund designed to provide long-term, affordable mortgages for everyday Nigerians. With interest rates reduced to 9.75% per annum and repayment terms extending up to 20 years, the programme aims to make 12,000 Nigerians homeowners at full implementation, with even more set to benefit as refinancing plans through the Nigerian Mortgage Refinancing Company take effect.

For decades, millions of Nigerians have been locked in a cycle of rent payments, often described as “funding their landlord’s retirement.” The absence of affordable mortgage options made owning a home nearly impossible. Now, with MREIF, aspiring homeowners can secure financing for their dream homes within weeks.

Since its inception, MREIF has financed over 700 homebuyers through 11 eligible financial institutions across five regions of Nigeria. These institutions licensed by the Central Bank of Nigeria and preapproved by MREIF include Abbey Mortgage Bank, Access Bank, AG Mortgage Bank, FCMB, FHA Mortgage Bank, Gateway Mortgage Bank, Globus Bank, Homebase Mortgage Bank, Imperial Homes Mortgage Bank, Infinity Trust Mortgage Bank, Living Trust Mortgage Bank, Nigeria Police Mortgage Bank, Providus Bank, Stanbic IBTC, and Union Bank. Each mortgage represents a family achieving ownership, stability, and the potential to build generational wealth.

What makes MREIF distinctive is its government backing, scale of funding, and transparent structure. The fund’s design ensures quick processing, affordability, and nationwide accessibility features that have long eluded Nigeria’s mortgage sector.

Beyond housing finance, the initiative is driving economic empowerment. The Federal Government committed ₦150 billion under Series 1 funding, fully subscribed in December 2024 while private investors contributed ₦100 billion under Series 2. Future tranches are expected to bring the fund’s total size to ₦1 trillion, ensuring long-term sustainability.

By combining public–private collaboration, the government guarantees affordability through concessionary funding, while ARM Investment Managers oversees the fund’s operations for maximum efficiency.

Speaking on the initiative’s impact, Wale Odutola, CEO of ARM HoldCo, said:
“MREIF embodies the kind of partnership Nigeria has long needed government resolve combined with private sector rigour. Together with MOFI, we are laying the structural foundation for a housing sector that rewards citizens, unlocks investor confidence, and drives inclusive growth.”

The ripple effects of MREIF extend beyond individual homeowners. The fund offers developers off-take guarantees, stimulating new construction projects, job creation, and growth across the housing value chain. It also provides Nigerians in the diaspora a secure, transparent platform for investing in homeownership.

This dual focus on boosting both supply and demand is designed to strengthen Nigeria’s housing ecosystem, ensuring lasting benefits for future generations.

While challenges such as inflation, forex pressures, and high construction costs persist, MREIF’s long-term, affordable structure is built to withstand economic shocks. As more financial institutions, developers, and pension funds join the initiative, thousands more Nigerians at home and abroad are expected to become homeowners.

The message is clear: the era of affordable homeownership has arrived in Nigeria. With Federal Government support and private sector management, MREIF stands as more than a housing scheme, it is a transformative economic reform reshaping lives, communities, and the nation’s financial future.

The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is a Federal Government–backed initiative introduced under President Bola Tinubu’s administration, with strategic direction from the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun.