Since the launch of the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund (MREIF), we’ve received several inquiries from Nigerians eager to understand how the initiative works and what it means for their dream of owning a home.

Questions like:

• “Is MREIF giving me the mortgage directly?”

• “I’ve registered on the MREIF website—what’s next?”

• “How do I apply for a mortgage under MREIF?”

These are all valid questions, and we’re excited by the enthusiasm and curiosity Nigerians have shown. This article provides answers and updates to help you better understand the MREIF journey and what to expect.

An Update: Series II Fundraising Success

Since our last update, the MREIF has crossed a major milestone: the successful close of its Series II fundraise. The private sector fully subscribed to the ₦100 billion offering—bringing the total fund size to ₦250 billion (₦150 billion from the public sector and ₦100 billion from the private sector).

This demonstrates strong market confidence and provides a solid foundation for issuing affordable mortgages and tackling Nigeria’s housing deficit in a sustainable, market-backed way.

Why the Mortgage Rate Is 12% — And Why It Makes Sense

Many have asked why the MREIF mortgage interest rate isn’t in the single digits. It’s a fair question.

The answer lies in the fund’s structure. MREIF is powered by both public and private capital. While the government provides funding at concessionary rates, private sector participants still expect returns in line with market realities.

At present, government bonds (10- to 20-year) yield between 18.60% and 19.53%. Thanks to blended funding, we’ve been able to offer mortgages at a fixed rate of 12%—an effective subsidy without undermining private capital sustainability.

As market rates moderate in the future, we remain optimistic that MREIF will move closer to single-digit interest rates.

How MREIF Differs from NHF

You may wonder: Why do we need MREIF when we already have the National Housing Fund (NHF)?

NHF, managed by the Federal Mortgage Bank of Nigeria (FMBN), plays an important role in providing single-digit mortgages to Nigerians. However, it’s entirely publicly funded and often oversubscribed—leading to long waiting times and limited capacity to serve the growing demand.

MREIF introduces a Public-Private Partnership (PPP) model. Structured similarly to pension funds, it features professional fund managers, trustees, and custodians—creating a governance structure that attracts and protects private investment.

This structure not only improves efficiency but also scales access to mortgage financing. For this reason, MREIF has earned an AA rating from GCR and a AAA rating from Agusto & Co.—Nigeria’s highest credit rating for investment vehicles.

MREIF Mortgages: What’s Different?

MREIF is bridging the gap between affordability and accessibility. Here’s how its mortgages stack up:

With ₦250 billion in starting capital (and a target of ₦1 trillion), MREIF is poised to deliver faster access to mortgages by pre-funding participating financial institutions.

So, How Do You Apply?

Here’s a step-by-step guide to securing a mortgage under MREIF:

Step 1: Choose a Property

• Select from the listings on the MREIF website, or any other verified property.

• Properties on the website are pre-assessed, but you will be dealing directly with the developer—not MREIF.

Step 2: Approach a Financial Institution

• Visit any MREIF-partnered commercial bank or Primary Mortgage Institution (PMI).

• The institution will evaluate your chosen property and your financial eligibility.

Step 3: Make a 20% Equity Contribution

• You’ll need to contribute at least 20% of the property’s cost upfront. This reduces loan risk and enhances creditworthiness.

Step 4: Submit Documentation

Typical requirements include:

• Employment and income verification

• Bank statements

• Business records (if self-employed)

• Identification and proof of address

Your monthly mortgage payment must not exceed 33% of your income—a global best practice.

Step 5: Property Completion and Mortgage Disbursement

• For newly built homes, disbursement happens post-construction.

• Once verified and approved, your lender requests funding from MREIF, and your mortgage is disbursed—locking in a 12% fixed rate for up to 20 years.

Who Can Apply?

MREIF is open to:

• Nigerian citizens (including diaspora, subject to lender terms)

• Applicants with verifiable income

• Individuals who can make the 20% equity contribution

• Those who meet the mortgage affordability criteria

The current maximum mortgage limit is ₦100 million, subject to income and financial eligibility.

What MREIF Can and Cannot Solve

Let’s be clear: MREIF is not a silver bullet. It won’t solve every housing challenge overnight.

Rising construction costs, stagnant incomes, and systemic wage-to-property value mismatches mean many Nigerians still find homeownership out of reach, even at subsidized mortgage rates.

That said, MREIF is a game-changer for the segment of the population that can now afford a home through structured, longer-term financing.

Over time, as wages rise and inflation moderates, the impact of MREIF will scale even further.

The Bottom Line

For decades, Nigerians have heard lofty promises of “Housing for All.” MREIF is different. It’s structured, capitalized, and regulated to deliver on its promise—bridging government support with private sector efficiency.

The framework is in place. The funding is secure. The opportunity is real.

Are you ready to take the first step toward homeownership?

Visit www.mreif.ng to learn more and explore property listings today.