MOFI Fund Disburses N140bn Mortgage Loans To 2,000 Nigerians Across 27 States

The MOFI Real Estate Investment Fund (MREIF) has disbursed more than N140 billion in mortgage loans to over 2,000 Nigerians across 27 states since commencing its mortgage operations in April 2025.

The development marks a significant expansion of formal mortgage financing in Nigeria, where high lending costs, limited access to long-term credit, and an inadequate housing supply have continued to constrain homeownership.

Head of Real Estate Investment at ARM Investment Managers, Olubiyi Adekunbi, disclosed the figures during a FirstBank webinar on pathways to home ownership and the use of mortgage finance to build long-term household wealth.

Adekunbi said beneficiaries of the MREIF mortgage programme are spread across Nigeria’s six geopolitical zones, with Lagos and Abuja accounting for the largest share of applications.

According to him, the programme has also extended financing opportunities to qualifying properties in states including Ogun, Oyo, Enugu, Kano and Kaduna.

He said the fastest mortgage transaction completed under the programme took less than three weeks, although applicants are required to provide the necessary documentation and undergo due diligence before approval.

Under the MREIF scheme, eligible borrowers can obtain mortgages of up to N100 million at an interest rate of 9.75 per cent, with repayment periods of up to 20 years.

Applicants are required to provide a minimum 10 per cent equity contribution towards the purchase of a property.

Contributors to the Contributory Pension Scheme may also use up to 25 per cent of their Retirement Savings Account balance to meet the equity requirement, subject to applicable conditions.

However, MREIF’s financing exposure is capped at N100 million per property, meaning buyers acquiring properties above that value must finance the balance from other sources.

The expansion of mortgage financing comes against the backdrop of a substantial housing supply deficit in Nigeria.

MREIF National Coordinator at the Ministry of Finance Incorporated (MOFI), Sani Yakubu, said Nigeria needs to deliver at least 700,000 housing units annually to address its housing requirements, while current production is estimated at about 100,000 units a year.

Yakubu said the gap underscores the need to expand financing for both prospective homeowners and property developers.

While increased mortgage availability can strengthen demand by enabling households to purchase homes through long-term financing, industry observers note that access to mortgages alone cannot bridge the housing deficit without corresponding growth in housing construction, serviced land and infrastructure.

MREIF operates under a broader N1 trillion programme registered with the Securities and Exchange Commission.

The first N250 billion tranche attracted N150 billion from the Federal Government, while private-sector investors contributed the remaining N100 billion.

The blended financing structure is designed to mobilise private capital into the real estate and housing finance sectors while reducing reliance on public funding.

The fund’s mortgage expansion has also coincided with strong reported financial performance.

MREIF recorded N14.49 billion profit before tax for the six months ended June 30, 2026, while total income stood at N17.48 billion.

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

Profit after tax stood at N14.24 billion after a withholding tax charge of N250.5 million.

MREIF has partnered with FirstBank to broaden access to mortgage financing for eligible Nigerians, providing another channel for prospective homeowners to obtain loans of up to N100 million under the fund’s framework.

The partnership is expected to leverage commercial banks’ customer-facing infrastructure for mortgage origination, assessment and administration.

However, land documentation remains a critical requirement for accessing the financing.

Applicants are required to provide valid land titles and clear ownership documentation for properties being financed, highlighting the importance of effective land administration to the growth of Nigeria’s formal housing market.

The scheme’s wider geographical reach could also stimulate housing development in secondary cities and emerging urban centres outside Lagos and Abuja.

For developers, a deeper mortgage market could increase the pool of potential buyers for qualifying housing projects, particularly where land and development costs are comparatively lower.

Nevertheless, affordability remains a major challenge. Although the 9.75 per cent mortgage rate is below prevailing commercial lending rates, the cost of the underlying property remains crucial to whether households can qualify for and comfortably service the loans.

Rising construction costs, land prices, infrastructure expenses and other development costs could continue to push housing prices beyond the reach of many households whose incomes have not kept pace.

The success of MREIF’s mortgage expansion will therefore depend not only on its ability to increase lending but also on whether greater access to finance stimulates the construction of affordable homes.

With more than N140 billion already disbursed to over 2,000 Nigerians across 27 states, the fund has established a growing presence in Nigeria’s mortgage market.

The next challenge, however, is to scale up financing and ensure that increased mortgage access is matched by sufficient housing supply, improved land administration, infrastructure and household purchasing power.