FG-backed mortgage reforms help 700 Nigerians become homeowners in six months
More than 700 Nigerians have become homeowners in just six months, marking early success for a landmark mortgage reform programme championed by the Federal Government through the Ministry of Finance Incorporated (MOFI).
The initiative aims to tackle Nigeria’s chronic housing crisis, which has left millions locked out of ownership due to high interest rates, limited access to credit, and a housing deficit estimated at over 28 million units.
Speaking on the initiative, Wale Odutola, CEO of ARM HoldCo, said MREIF represents the type of collaboration needed to deepen Nigeria’s housing finance system.
“MREIF embodies the kind of partnership Nigeria has long needed—government resolve combined with private sector rigour,” Odutola said. “Together with MOFI, we are laying the structural foundation for a housing sector that rewards citizens, unlocks investor confidence, and drives inclusive growth.”
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As the heart of the reform, MOFI Real Estate Investment Fund (MREIF), a N1 trillion Securities and Exchange Commission–registered vehicle was created to provide long-term, affordable mortgages for ordinary Nigerians. The fund offers loans at 9.75 percent per annum with repayment periods of up to 20 years, a major shift from the double-digit lending rates that have long defined Nigeria’s mortgage market.
Since inception, MREIF has financed over 700 homebuyers through 11 Eligible Financial Institutions (EFIs) across five regions of the country. These include Abbey Mortgage Bank, Access Bank, FCMB, FHA Mortgage Bank, Gateway Mortgage Bank, Globus 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 transitioning from rent to ownership, a step that builds household wealth and stability.
The combination of government support, private-sector management, and transparent governance makes MREIF a stronger model than earlier public housing schemes.
The Federal Government committed N150 billion under Series 1 funding, fully subscribed in December 2024, while private investors contributed another N100 billion under Series 2. Additional tranches are expected to raise the fund to N1 trillion, ensuring sustainability. The fund is managed by ARM Investment Managers, providing professional oversight and accountability.
Beyond individual mortgages, MREIF supports developers through offtake guarantees, encouraging new construction, job creation, and expansion of the housing supply chain. It also provides a credible platform for diaspora Nigerians seeking secure real estate investment opportunities.
Although inflation, forex volatility, and high construction costs remain challenges, MREIF’s long-term and concessionary structure provides a cushion. With more financial institutions and investors expected to participate, the fund could help thousands more Nigerians move from renting to owning homes, turning one of Nigeria’s toughest socioeconomic challenges into an opportunity for inclusive growth.
