The Mortgage Banking Association of Nigeria (MBAN) has lauded the federal government for approving a N250 billion Mortgage and Real Estate Investment Fund (MREIF), describing it as a “life-saving initiative” that will address Nigeria’s housing deficit and transform the mortgage banking sub-sector.
Executive Secretary/CEO of MBAN, Dr. Adedeji Ajadi, according to a statement on Monday, described the fund as “a golden opportunity for Nigerians to have access to affordable mortgages, fulfill their dreams of home ownership, and contribute to narrowing the housing gap”.
The approval, granted by the Federal Executive Council (FEC) was described by MBAN as a bold and strategic step toward resolving the nation’s significant housing challenges.
Ajadi noted, “The N250 billion MREI-Fund is a practical and stoic demonstration of sovereign political will at the highest level of government.
“It offers access to long-term and sustainable housing finance for low-cost mortgages, which will especially benefit low-and middle-income earners.”
The fund, as explained by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, will blend government seed funding with long-term investments from private sector players such as pension fund operators and life insurance companies.
This innovative model is expected to deliver single-digit interest rates and mortgage repayment tenors of up to 20 years, providing much-needed relief to prospective homeowners currently struggling with high borrowing costs.
MBAN’s leadership praised President Bola Tinubu for his commitment to addressing the housing deficit.
“This intervention demonstrates the federal government’s dedication to tackling critical national challenges and revitalising the mortgage banking sub-sector,” MBAN said.
The association also commended the Minister of Housing and Urban Development, Arch. Ahmed Dangiwa for bringing “innovations and new ideas” to the mortgage sector.
Additionally, it recognised the Managing Director of the Federal Mortgage Bank of Nigeria (FMBN), Shehu Usman Osidi, for his visionary leadership in driving the federal government’s housing finance vision.
“This initiative is transformative and visionary,” MBAN stated, adding, “It underscores the importance of public-private collaboration in addressing critical housing challenges.”
The MREIF is also expected to stimulate economic growth and job creation within the mortgage banking and housing construction value chain.
“The fund will catalyse affordable housing finance, providing relief to those burdened by high interest rates and affordability issues,” said President of MBAN, Mr. Ebilate Mac-Yoroki.
Encouraging Nigerians to seize the opportunity, MBAN assured that licensed mortgage banks and registered mortgage brokerage companies under its umbrella are ready to facilitate access to the fund.
“Please be assured that the member mortgage banks and brokerage companies of MBAN are poised to ensure the benefits of this transformative fund reach those who need it most,” the statement emphasised.
The association further urged Nigerians to contact licensed mortgage banks and registered brokers to explore this funding opportunity.
“Together, we will build a nation where affordable homeownership and rent-to-own finance become a reality for all Nigerians,” MBAN said.
The approval of the N250 billion fund highlights the federal government’s determination to bridge the housing gap while providing a foundation for long-term economic growth and sustainable development.
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