A guide to what the fund is, how it works, who it helps, and what Nigerians should expect next.

Nigeria’s housing market has struggled for decades: high mortgage rates, short loan tenures, cash-upfront home sales, and banks unwilling to issue long-term mortgages because they lack stable funding.

In 2025, the Ministry of Finance Incorporated (MOFI) introduced what it calls a transformational solution: the MOFI Real Estate Investment Fund (MREIF), a government-backed, private-sector–supported mechanism designed to reshape how Nigerians access housing.

MREIF is more than a loan program. It is a ₦1 trillion structured investment fund built to mobilize public and private capital, provide low-cost mortgages, de-risk developers, and stimulate large-scale housing development across the country. It is regulated under Nigeria’s capital markets rules and operates like a modern real estate investment fund, with commercial units now trading on the Nigerian Exchange (NGX).

As MOFI described during the fund’s listing on the NGX:

“The MREIF represents a transformative approach to affordable housing, mobilizing private and institutional capital into the housing sector, creating jobs, and stimulating economic growth.”

This article breaks down what the fund is, how it works, its timeline, how much it has raised, interest rates, who can benefit, and what Nigerians should expect next.

1. What Exactly Is MREIF?

MREIF (Mortgage Refinance and Warehouse Infrastructure Fund) is:

A closed-end investment fund. This means it raises a fixed amount of capital upfront and invests it according to a structured plan.
Backed by the Federal Government of Nigeria. It is managed under MOFI, the federal government’s investment arm
Created to provide long-term capital for mortgages
Structured to eventually reach ₦1 trillion

In simple terms:

It collects money from government + investors → and uses it to refinance mortgages from banks → so more Nigerians can access affordable home loans.

It does not build houses.
It funds banks, so banks can fund you.

👉🏾 Because MREIF is government-backed, it carries lower risk and attracts large institutions. The fund aims to address the structural issues that have made mortgages inaccessible for decades: high rates, short tenors, lack of developer financing, and inconsistent demand.

A closed-end fund raises money in fixed batches called series. Investors buy units (like shares), the fund invests the pooled money, and the units can later be traded on the stock exchange.

2. Key Milestones in MREIF’s Development

December 2024: Series 1 Funding Completed (₦150bn)
The government, through the Ministry of Finance Incorporated (MOFI), fully subscribed to Series 1 as the anchor investor. This provided the seed capital needed before the fund could officially begin operations.

February 2025: Series 2 Launch (₦100bn)
Series 2 opened to private and institutional investors. It was fully subscribed, bringing the total fund size to ₦250bn ahead of operational kickoff.

March 17, 2025: Official Commencement of Operations
MREIF formally began operating under its SEC-approved structure as part of the ₦1 trillion National Housing Finance Program. This marked the start of mortgage refinancing activities, investor engagement, and disbursement workflows.

Mid-2025: Mortgage Refinancing Gains Momentum
Over ₦8bn in mortgage funds were disbursed, 173 mortgage applications were approved, and 600+ applications were under review across multiple primary mortgage banks.

July 2025: Interest Rate Reduction to 9.75%
The fund lowered applicable mortgage rates from ~12% to 9.75%, making housing finance more accessible for qualifying homeowners.

November 11, 2025: Listing on the Nigerian Exchange (NGX)
MREIF units were listed on the NGX, giving retail, diaspora, and foreign investors the ability to buy, sell, and trade the fund on the open market, enhancing transparency and liquidity.
Although Series 1 (₦150bn) and Series 2 (₦100bn) of the MREIF were fully subscribed during the fundraising stage, the listing on the Nigerian Exchange (NGX) means the fund’s units are now tradable.

Long-Term Outlook: Expansion Toward ₦1 Trillion
The Federal Government plans to scale MREIF to ₦1 trillion by blending government capital with investments from institutions, pension funds, private investors, and the Nigerian diaspora.

What Does “Fully Subscribed” Mean?

If Series 1 is ₦150bn, and investors buy all ₦150bn worth of units, it is fully subscribed.

So “fully subscribed” means:

Investors bought all the units the fund offered in that round.

MOFI bought 100% of Series 1 units.
Private/institutional investors bought 100% of Series 2 units.

3. How MREIF Works (In Plain English)

1. Mortgages for Homebuyers

MREIF provides wholesale funding to approved financial institutions, which then issue long-term, low-interest mortgages to qualifying buyers.
Benefits include:

Lower interest (currently 9.75%)
Longer tenors (up to 20–25 years)
Lower equity contribution (as low as 10%)
Support for first-time buyers

Here is a simple illustration of how MREIF uses money to refinance mortgages:

Borrower → Gets a mortgage from a bank (e.g., ₦20m)
          |
          v
Bank → Sends mortgage details to MREIF
          |
          v
MREIF → Pays the bank back the ₦20m (refinancing)
          |
          v
Bank → Uses the money to issue NEW mortgages

Why this matters:

Banks no longer wait 20 years to recover their money
Banks can keep issuing mortgages continuously
Mortgage interest rates fall
More Nigerians can qualify for home loans

This system powers most Western housing markets.

Simple Everyday Analogy

Imagine a tailor waiting for a customer to finish paying installments over 12 months before accepting another job.
Their business will be slow.

Now imagine a sponsor who pays the tailor upfront for the job and then collects the customer’s installments over time.

The tailor can now take many more jobs.

MREIF is the sponsor.

2. Offtake Guarantees for Developers

One major challenge in real estate is the number of unsold units. MREIF steps in to reduce that fear.

Developers who meet the fund’s criteria can receive offtake guarantees, meaning:

If the property does not sell quickly, MREIF guarantees part of the uptake.
This reduces risk.
Enables developers to build large-scale, affordable projects.

This feature is expected to unlock significant private-sector housing supply.

3. Capital-Market Backing

With MREIF listed on NGX, institutional and retail investors (including diaspora Nigerians) can invest in the fund like any other regulated investment.

This expands the funding pool beyond government and banks.

4. Why MREIF Matters for Lagos and Nigeria

1. Housing Supply Could Increase

If implemented effectively, the fund could unlock new housing mini-cities, large development clusters, and affordable estate projects across states.

2. Homeownership May Become More Realistic

A 20-year mortgage at 9.75% offers predictability, a major shift away from the 22–30% commercial bank rates many Nigerians face.

3. Developers Get Stability

With guaranteed offtake, developers can focus on delivery, not just sales anxiety.

4. Investors Gain a New Asset Class

Real estate becomes tradeable, regulated, and more transparent.

5. Economic Growth

Construction has one of the highest economic multipliers: jobs, materials, logistics, and services.

Who Stands to Benefit?

Middle-income Nigerians

Those who traditionally cannot pay upfront for a house and cannot afford bank mortgages.

First-time homebuyers

Especially civil servants, young professionals, and families.

Developers

Especially developers capable of delivering compliant, mid-market, or affordable housing units.

Investors

Institutions, pension funds, mutual funds, and diaspora investors.

5. Challenges and Risks to Consider

Inflation and interest-rate volatility: mortgage affordability depends on macroeconomic stability.
Mismatch between housing type and demand: developers must deliver homes Nigerians can actually afford.
Transparency and accountability: Nigeria’s real estate sector must avoid misuse of funds.
Land titling challenges: without clear titles, mortgage adoption may stall.
Price inflation: mortgage-backed demand can push house prices up if supply doesn’t keep pace.

6. What Nigerians Should Watch Next

Uptake of the 9.75% mortgage rate. How many Nigerians can truly qualify? Whether rates go below 9% in 2026.
The next fundraising tranche toward the ₦1 trillion target.
New developer partnerships and estate announcements under the scheme.
How quickly mortgage-backed homeowners begin to take possession.
Unit-price stability on NGX, a sign of investor confidence.
Transparency reports, audit releases, and delivery outcomes.

7. Key Questions People Usually Ask (FAQ)

1. Is MREIF a grant or a loan?

It’s neither. It is a structured real estate investment fund that finances mortgages and housing projects.

2. Can any Nigerian apply for a mortgage under MREIF?

Not automatically. You apply through partner banks and must meet eligibility requirements.

3. Is the interest rate fixed?

As of mid–2025, the published mortgage rate under the program is 9.75%, but this may adjust with monetary conditions.

4. Can developers apply directly?

Yes. Developers can request offtake guarantees or financing support, but they must meet MREIF compliance, structural, and quality requirements.

5. Is MREIF fully operational nationwide?

Yes, though mortgage approvals and project involvement depend on state-level land policies and bank participation.

6. Is this a federal government scheme?

It is a hybrid public–private system, but MOFI is the primary sponsor.

7. Can investors buy MREIF units?

Yes, units are now trading on the NGX.

Final Thoughts

MREIF is one of the most ambitious housing-finance interventions Nigeria has seen. It combines government backing, private investment, structured mortgage financing, and capital-market discipline.
With ₦250bn raised across two series, refinancing underway, and its listing on NGX, the fund is entering a growth phase that could reshape mortgage access for millions. Its success depends on how well the system delivers:
accessible mortgages,
affordable houses,
transparent processes,
and developer accountability.
But if it works as designed, it could reshape Nigeria’s housing landscape over the next decade.

🇳🇬 Understanding MREIF: Nigeria’s ₦1 Trillion Mortgage Fund Transforming Home Ownership