Fresh facts have emerged that the Ministry of Finance Incorporated (MOFI) will leverage the capital market to address the country’s housing deficit and secure funding for large-scale housing projects.
The MOFI Chief Executive Officer, Dr Armstrong Takang, who made this known during the visit of senior members of the Housing Development Advocacy Network (HDAN) to his office in Abuja, said the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) is a cornerstone of the One Million Homes Presidential Initiative, designed to offer affordable housing through innovative financing solutions.
He said MREIF will operate as a market-driven framework, integrating pension funds and other financial sector resources to provide affordable mortgage options, particularly to pension account holders. Takang emphasised that the fund is a pivotal step towards broadening homeownership opportunities and addressing long-standing housing challenges.
According to him, transparency and market efficiency will underpin the fund’s operations, strengthening the mortgage market and creating sustainable pathways to homeownership. To ensure the success of the MREIF, he said the government has engaged key figures from the pension and financial sectors.
These include the Accountant General of the Federation, Dr. Oluwatoyin Madein, and executives such as Wale Odutola of ARM Pensions, Funmi Ekundayo of STC Trustees, and Saadu Jijji of PAL Pensions. Their collective expertise in fund management, real estate financing, and investment advisory will shape the fund’s structure and deployment.
Takang said the MREIF offers a groundbreaking opportunity for pension account holders, granting access to mortgage loans at reduced interest rates. This innovative approach aims to dismantle the barriers that have hindered affordable homeownership for many Nigerians, aligning with the government’s broader vision for an inclusive and sustainable housing sector.
MOFI’s plans include close collaboration with key housing agencies, including Family Homes Funds Ltd. and the Federal Mortgage Bank of Nigeria. The company has also pledged support to Primary Mortgage Institutions (PMIs), aiming to enhance their operational capacity to meet the growing demand for affordable housing.
Earlier, HDAN commended the Federal Government for its N250 billion commitment to addressing the housing deficit and noted that MOFI’s approach aligns with its advocacy goals. “We are happy that MOFI is ready to raise money from the capital market, which is one area that has not been tapped in Nigeria. We are hopeful that from 2025 our sector will witness a new development in affordable housing and mortgage financing,” HDAN added.
The group, however, cautioned MOFI to learn from the previous housing experiments of the Federal Government and advised the agency to work with professionals and estate developers that have excellent records of delivery and performance.
HDAN Executive Director, Festus Adebayo, lauded MOFI’s proactive measures and called on estate developers to rally support for the success of the one million houses by President Bola Ahmed Tinubu.
Through these collaborative efforts, the group said the Federal Government, in partnership with MOFI and other key stakeholders, will pave the way for significant advancements in housing development.
Also, the former Chairman, Federal Government Reform Committee on Land, Dr Ugochukwu Chime, emphasised the critical need for MOFI to address the issue of land titling, which has created a significant barrier to accessing housing funds.
Similarly, another stakeholder at the meeting, Emmanuel Akinwumi, urged the government to review outdated housing and mortgage laws to improve sector performance and ensure the success of the new initiatives.
