FG Allocates N150bn to Real Estate Fund

The Federal Government of Nigeria, through the Ministry of Finance Incorporated (MOFI), has fully subscribed to the N150bn Series 1 issuance of the Real Estate Investment Fund.

A recent statement emphasized that this investment reaffirms the government’s role as the fund’s sponsor while allowing the private sector to drive its implementation and management.

The Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is a key initiative under President Bola Tinubu’s administration, championed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The fund aims to expand homeownership opportunities and promote inclusive economic development.

“By providing initial funding of N150bn, the Federal Government has established a solid foundation for MREIF, ensuring its long-term sustainability and effectiveness under private sector leadership,” the statement read.

MREIF’s Role in Housing and Economic Growth

ARM Investment Managers, the appointed fund manager, is responsible for directing the funds toward long-term, low-cost mortgage financing for homeowners and providing offtake guarantees for developers. This approach is expected to improve homeownership rates, facilitate the timely construction of quality, affordable housing, and stimulate economic growth.

MREIF is designed to revolutionize Nigeria’s housing sector by offering accessible long-term mortgages for potential homeowners. The fund will also support real estate developers by providing financial backing, thereby accelerating the construction of affordable housing units. Additionally, it is expected to generate employment and drive economic activity within the construction and real estate sectors.

Opportunities for Private Investors

MOFI disclosed that with the successful full subscription of N150bn in the Series 1 issuance and the allocation of 100% of units to MOFI, the upcoming Series 2 issuance of N100bn will be made available to private and commercial investors, subject to regulatory approval from the Securities and Exchange Commission.

“This initiative offers institutional investors, high-net-worth individuals, and private stakeholders a unique opportunity to participate in a transformative project that delivers both economic impact and competitive financial returns,” the statement noted.

By investing in MREIF, private investors can contribute to expanding homeownership in Nigeria while enjoying attractive returns, portfolio diversification through impact-driven projects, support for national economic growth, and alignment with the United Nations Sustainable Development Goals.