The MOFI Real Estate Investment Fund (MREIF) has successfully secured N100bn from private investors through its fully subscribed Series 2 issuance. This achievement marks a significant step forward in attracting private sector investment to tackle Nigeria’s housing challenges.
Part of MREIF’s larger NGN250bn pilot fundraising initiative, this issuance is aimed at addressing the country’s housing finance gap while encouraging further investment in affordable housing projects.
Sani Yakubu, Executive Director (Co-ordinator) of MREIF, made the announcement in a statement on Thursday, confirming that the N250bn fundraising had been completed, with N100bn raised through private sector participation.
The Series 2 issuance saw strong interest from institutional investors, underscoring the fund’s solid structure and long-term growth potential. With Aaa ratings from Agusto & Co. and AA ratings from Global Credit Rating, MREIF has established itself as a reliable and market-driven investment platform.
Unlike the earlier Series 1 issuance, which was entirely backed by MOFI with N150bn, the Series 2 issuance opened up opportunities for private sector investors. This expansion of private sector involvement is in line with MREIF’s goal of generating long-term capital to address the country’s affordable housing needs.
Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, commented that the full subscription of Series 2 indicates a significant demand for structured housing finance solutions and demonstrates investor confidence in MREIF’s approach.
Edun said, “The successful close of this pilot phase marks the beginning of a much-needed transformation in Nigeria’s housing sector. We are unlocking private capital and positioning MREIF as a sustainable, market-driven investment vehicle. The full subscription shows that Nigeria’s private sector is ready to invest in long-term housing finance solutions that will provide affordable homeownership opportunities for Nigerians.”
The MOFI Real Estate Investment Fund is a Securities and Exchange Commission-approved investment fund, created to enhance homeownership and strengthen Nigeria’s housing finance sector.
MRIEF is designed to address key housing finance challenges by offering affordable mortgage financing with repayment terms of up to 20 years and interest rates as low as 12%, far below typical commercial lending rates. Additionally, the fund offers off-take guarantees to developers, helping reduce risk and attract capital for large-scale housing projects.
Dr. Armstrong Takang, Managing Director and CEO of MOFI, stated that the fully subscribed issuance is a strong signal of investor confidence in MREIF’s ability to mobilize housing finance at scale.
“MREIF is opening up new investment opportunities in Nigeria’s housing sector,” Takang said. “This fully subscribed Series 2 issuance reflects confidence in the fund’s structure and its long-term potential, which MOFI fully supports.”
With the NGN1tn multi-tranche programme now in progress, the next phase for MREIF will focus on increasing private sector participation and accelerating large-scale housing development.
MREIF is designed to collaborate with commercial banks, mortgage providers, developers, and other financial institutions to strengthen long-term housing finance in Nigeria. The fund is expected to play a key role in helping close the country’s housing deficit by providing structured capital for affordable housing projects.
