MREIF disburses over N140 billion in mortgages to 2,000 Nigerians

The MOFI Real Estate Investment Fund (MREIF) has disbursed more than N140 billion in mortgage financing to over 2,000 Nigerians since commencing operations in March 2025, as the Federal Government-backed housing initiative gains traction across the country.

The disclosure was made by Olubiyi Adekunbi, Head of Real Estate Investment at ARM Investment Managers, during a webinar hosted by FirstBank titled “Beyond Rent: The Path to Home Ownership Leveraging FirstBank-MREIF Home Loan Scheme to Build Long-Term Wealth,” on Wednesday.

MREIF is a N1 trillion housing finance initiative established by the Ministry of Finance Incorporated (MOFI) to address Nigeria’s housing deficit through the provision of affordable, long-term mortgage financing.

What they are saying

According to Adekunbi, mortgage disbursements began in April 2025, and the fund has recorded more than 2,000 beneficiaries by August 2026.

• “MREIF formally commenced operations in March 2025 and between April 2025 when we started disbursing mortgages and August 2026, over 2,000 people have benefited from the mortgages with a total of over N140 billion deployed.
• “That pace, in our perspective, is unprecedented, and the processes have been done such that it’s seamless. You don’t need to know somebody to help you push your applications,” he said.

He noted that the fastest mortgage transaction under the scheme was completed in less than three weeks, provided all required documentation and due diligence processes were in order.

According to him, applicants can potentially complete the process and secure home ownership within a month.

Beneficiaries spread across 27 states

Although Lagos and Abuja account for the largest share of applications, MREIF mortgages have been disbursed across 27 states spanning Nigeria’s six geopolitical zones.

• Adekunbi said properties located in states such as Ogun, Oyo, Enugu, Kano and Kaduna qualify for financing, provided they possess valid land titles and clear ownership records.
• He added that the average age of applicants is 43 years, while mortgage tenors are generally structured around a retirement age of 60, with exceptions for professions that have higher retirement ages, such as lecturers and judges.

The scheme is also available to Nigerians in the diaspora who meet the required eligibility and documentation requirements.

Addressing Nigeria’s housing deficit

Speaking during the webinar, MREIF National Coordinator at MOFI, Sani Yakubu, said Nigeria needs to build at least 700,000 housing units annually to bridge its housing gap, compared to current production levels of roughly 100,000 units per year.

He attributed the deficit to limited access to affordable financing for homebuyers and challenges faced by developers in raising capital and securing land documentation.

• “The MREIF didn’t come to remove any players. It came to catalyze,” Yakubu said, explaining that the initiative is designed to strengthen existing banks and mortgage institutions rather than replace them.

N250 billion first tranche launched

Yakubu disclosed that the Federal Government contributed N150 billion to the fund’s first N250 billion tranche, while private-sector investors provided the remaining N100 billion.

The tranche forms part of the broader N1 trillion MREIF programme registered with the Securities and Exchange Commission (SEC).

According to him, the structure was developed by Nigerian professionals and includes Vetiva Capital Management as financial adviser, STL Trustees as trustee and First Nominees as nominee to the fund.

Mortgage terms

Adekunbi explained that MREIF offers mortgages of up to N100 million at an interest rate of 9.75%, with repayment tenors extending to 20 years.

Borrowers are required to provide a minimum equity contribution of 10%, while contributors under the Contributory Pension Scheme can access up to 25% of their Retirement Savings Account (RSA) balance to meet the equity requirement.

For properties valued above N100 million, applicants are expected to finance the balance through personal savings, pension withdrawals or other funding sources, as MREIF’s maximum exposure per mortgage is capped at N100 million.

Get up to speed

The update comes after MREIF reported a profit before tax of N14.49 billion for the six months ended June 30, 2026.

The fund generated total income of N17.48 billion during the period, driven largely by interest earnings from its investment portfolio.

Interest income from financial assets measured at amortised cost contributed N8.10 billion, while income from cash and cash equivalents added N6.21 billion.

After accounting for withholding tax of N250.5 million, profit after tax stood at N14.24 billion.

What you should know

The webinar follows FirstBank’s partnership with MREIF to provide Nigerians with access to mortgage financing of up to N100 million.

The initiative is supporting the government’s efforts to expand home ownership and address the country’s housing shortage.