The MOFI Real Estate Investment Fund (MREIF) has successfully raised N100 billion from private investors in its fully subscribed Series 2 issuance, marking a major milestone in mobilising private sector capital for Nigeria’s housing sector.
The issuance forms part of MREIF’s N250 billion pilot fundraising, aimed at bridging the country’s housing finance gap.
The announcement was contained in a statement signed by Sani Yakubu, Executive Director (Coordinator), MREIF, on Thursday.
According to the statement, the Series 2 issuance saw strong institutional investor participation, reflecting market confidence in the fund’s structure and long-term potential.
The fund holds an Aaa rating from Agusto & Co. and an AA rating from Global Credit Rating (GCR), positioning it as a credible and market-driven investment platform.
Private sector participation strengthens housing finance
Unlike the N150 billion Series 1 issuance, which was solely backed by MOFI, the Series 2 offer attracted private sector investors, reinforcing MREIF’s role in mobilising long-term capital for affordable housing finance.
Commenting on the development, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, described the full subscription of the Series 2 offer as a reflection of pent-up demand for structured housing finance solutions and investor confidence in MREIF’s model.
“The successful close of this pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector,” Edun said.
“With this initiative, we are unlocking private capital and positioning MREIF as a sustainable, market-driven investment vehicle. The full subscription of the Series 2 offer demonstrates that Nigeria’s private sector is ready to invest in structured, long-term housing finance solutions that will provide affordable homeownership opportunities to Nigerians.”
Targeting Nigeria’s housing market
The MREIF structure is designed to address key housing finance constraints, offering:
- Affordable mortgage financing with repayment tenors of up to 20 years at interest rates as low as 12%, significantly below commercial lending rates.
- Off-take guarantees for developers, reducing risk exposure and unlocking capital for large-scale housing projects.
Speaking on the fund’s long-term outlook, Dr Armstrong Ume Takang, MD/CEO of MOFI, noted that the fully subscribed issuance signals strong investor confidence in MREIF as a platform for mobilising housing finance at scale.
“MREIF is unlocking new investment frontiers in Nigeria’s housing sector,” Takang said.
“This fully subscribed Series 2 issuance demonstrates investor confidence in the Fund’s structure and long-term potential, which MOFI fully supports.”
With MREIF’s NGN1 trillion multi-tranche programme now in motion, the fund’s next phase will focus on expanding private sector participation and accelerating large-scale housing development.
The fund is structured to integrate with commercial banks, mortgage providers, developers, and financial institutions to strengthen long-term housing finance, the statement noted.
MREIF is expected to play a key role in closing Nigeria’s housing deficit by providing structured capital for affordable housing initiatives.
The MOFI Real Estate Investment Fund (MREIF) is a Securities and Exchange Commission (SEC)-approved investment fund designed to expand homeownership and strengthen Nigeria’s housing finance sector.
