The Federal Government has entered into a Memorandum of Understanding with Shelter Afrique Development Bank to bolster Nigeria’s housing sector by expanding the MOFI Real Estate Investment Fund.
Signed in Abuja, this agreement aims to tackle the nation’s housing deficit by mobilizing structured, locally sourced financing and creating new opportunities for developers and potential homeowners.
Dr. Armstrong Takang, Chief Executive Officer of the Ministry of Finance Incorporated, hailed the partnership as a significant step toward delivering large-scale, affordable housing through local solutions.
He noted that the MREIF program, supported by President Bola Tinubu, aims to raise N1 trillion, to be implemented in phases.
So far, the fund has successfully raised N150 billion in Series 1 and N100 billion in Series 2, with disbursements already underway.
“This is more than just words; it’s about taking action,” he stated. “The mortgages have already begun, and we will be returning to the market. Even N1 trillion is merely a small fraction when considering the housing deficit, but it represents a positive and symbolic beginning.”
He explained that the mortgages offered through the scheme are denominated in naira, which mitigates currency risk and allows for extended repayment periods of up to 25 years at low interest rates.
According to Takang, the design of the MREIF addresses both the demand and supply aspects of the housing market.
While affordable mortgages are provided directly to applicants, the fund also offers off-take guarantees to developers who are targeting MREIF subscribers.
“These guarantees enable developers to seek financing from financial institutions for their construction needs,” he noted. “That’s where Shelter Afrique comes into play. They don’t issue mortgages; instead, they provide the necessary construction capital once the off-take guarantees are secured.”
He characterized the agreement with Shelter Afrique as a “perfect alignment” between the two parties, designed to simultaneously stimulate both supply and demand. “Together, we are co-travelers on the journey to provide housing not only for Nigeria but for the entire continent.”
During the event, Shelter Afrique’s Managing Director, Thierno-Habib Hann, referred to the partnership as both strategic and timely.
“This partnership is more than just symbolic; it represents a strategic alignment between institutions that share a vision for Africa’s housing future,” Hann stated.
He emphasized that Nigeria plays a crucial role in Shelter Afrique’s housing agenda, highlighting that the country is one of the two largest shareholders in the development bank.
