•Plans non-interest option, targets Nigerians in diaspora

James Emejo in Abuja

Chief Executive, Ministry of Finance Incorporated (MOFI), Dr. Armstrong Takang, yesterday said hundreds of Nigerians had taken advantage of MOFI’s single-digit interest funding to own mortgages under its housing initiative, MOFI Real Estate Investment Fund (MREIF).

Under the housing initiative, funding was reduced to 9.75 per cent from the initial interest rate of 12 per cent, further expanding access to mortgages for Nigerians. 

Speaking at the Africa International Housing Show (AIHS) in Abuja, Takang also disclosed plans to roll out a Shariah-compliant non-interest option, which would allow Nigerians in the diaspora access mortgage opportunities in the country.

He said through innovative financing, the federal government was committed to radically bridge the housing gap in the country, under a scheme designed for sustainability and wide-ranging impact.

The MOFI boss pointed out that MREIF, which was designed to transform Nigeria’s housing sector by bridging the mortgage financing gap through flexible terms, was already being embraced by Nigerians.

He stressed that MREIF was a much-needed, long-overdue intervention in the housing sector with real capacity to radically transform the entire housing value chain, and deliver long-term impact.

According to him, the initiative is designed to hedge against liquidity challenges, corporate governance issues, accessibility barriers, and the perennial challenge of sustaining initiatives for the long-term. 

He said the country’s mortgage landscape was characterised by about 20 million housing deficit, prohibitive mortgage rates, and low mortgage tenors, including limited refinancing options and shallow secondary markets.

Takang explained that MREIF was conceived as a timely, bold, and innovative solution to cure existing limitations in the housing sector.

He said the initiative consisted of N1 trillion Securities and Exchange Commission (SEC) approved and regulated fund designed to expand homeownership and strengthen Nigeria’s housing sector. 

He also stated that the fund’s structure was designed to achieve the best corporate governance standards possible, replicating proven market-aligned success models. He said to achieve this, MOFI served only as the sponsor of the fund, while MREIF enjoyed the full status of a regulated market instrument with a fund manager and was open to institutional investors.

Takang stated that with N250 billion already raised, including mortgage finance disbursements across three geographical zones so far, “MREIF is demonstrating its prowess as a key driver of investment in long-term housing finance in Nigeria”.

He added that with an AAA rating from Agusto and AA rating from GCR, “MREIF had established itself as a highly credible, market-driven investment platform to address Nigeria’s housing finance gap by issuing out single-digit mortgages through eligible financing institutions, over a period of 20 years.”

He said the fund also provided offtake guarantees to qualified developers, ensuring sale of their properties by providing mortgages to qualified homebuyers.

In a statement, Takang commended President Bola Tinubu for the Renewed Hope Housing Initiative that inspired MREIF, and the fund’s private sector partners for steering the initiative towards sustainable impact.

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