MBAN Urges MREIF to Prioritise Sustainable Housing Finance Over Profits

MBAN calls for stronger mortgage delivery

The Mortgage Banking Association of Nigeria (MBAN) has urged the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to accelerate mortgage lending and focus on its broader housing-development mandate, despite the Fund’s strong financial performance in the first half of 2026.

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MREIF reported a profit before tax of N14.49 billion and profit after tax of N14.24 billion for the period, while its net asset value per unit rose to N106.71. MBAN said the results demonstrate sound financial management but argued that the Fund’s long-term success should ultimately be measured by the number of mortgages created and homes financed.

MBAN says MREIF must balance profits with housing delivery

MBAN said MREIF has a broader developmental responsibility beyond generating investment returns.

The Fund was established to expand access to affordable, long-term mortgage finance, deepen Nigeria’s housing finance market, mobilise long-term capital and support homeownership, particularly among low- and middle-income Nigerians.

The association therefore wants the Fund to translate its financial strength into greater mortgage creation and housing delivery.

This shifts the focus from the Fund’s balance sheet performance to its impact on the wider housing market.

MREIF mortgage portfolio rises 86 percent

MBAN acknowledged that MREIF increased its mortgage portfolio by 86 percent during the first six months of 2026.

However, the association said a significant portion of the Fund’s assets remained in cash and investment securities rather than being deployed into mortgage loans.

It also noted that much of the Fund’s income during the period came from interest earned on these investments rather than mortgage lending.

According to MBAN, this creates an opportunity for MREIF to accelerate the deployment of its available capital towards housing finance while maintaining appropriate investment and risk controls.

Mortgage expansion must maintain risk controls

MBAN cautioned that faster mortgage creation should not come at the expense of prudent lending.

The association said effective mortgage lending requires strong credit assessment, proper legal documentation, property verification and reliable operational systems.

This is particularly important in Nigeria’s housing finance market, where issues around property titles, valuation, income verification and foreclosure processes can affect the quality and sustainability of mortgage portfolios.

The challenge, according to MBAN, is therefore to increase mortgage disbursement while protecting investors’ capital and maintaining sound underwriting standards.

Housing finance remains a major constraint

Access to affordable long-term mortgage finance remains one of the major constraints facing Nigeria’s housing market.

High interest rates, rising construction costs, limited household purchasing power and difficulties around property documentation can make homeownership inaccessible to many households.

A deeper mortgage market could help spread the cost of homeownership over longer periods and provide developers with a more reliable pool of potential buyers.

For the housing industry, increased mortgage availability could therefore support both demand for completed homes and the development of new housing projects.

MREIF could strengthen housing market liquidity

Greater deployment of mortgage capital could also improve liquidity across Nigeria’s housing market.

When buyers have access to long-term financing, developers can potentially sell completed units to a wider pool of households rather than relying heavily on cash purchases.

This can improve the flow of capital through the housing value chain, from land acquisition and construction to sales and mortgage repayment.

A stronger mortgage market could also create opportunities for mortgage-backed assets and other forms of long-term housing finance investment.

MBAN calls for stronger industry collaboration

The mortgage banking association also called for greater collaboration between MREIF, primary mortgage banks and other industry stakeholders.

It said regular and structured engagement could improve transparency, execution and the development of partnerships needed to expand responsible mortgage lending.

Primary mortgage banks could play an important role by originating mortgage assets, strengthening underwriting standards and using technology to improve loan processing and monitoring.

This could allow MREIF to expand its lending reach without weakening the quality of the underlying mortgage assets.

Profits provide a foundation for greater impact

MREIF’s reported financial performance provides a stronger financial base from which the Fund can pursue its housing-development mandate.

The N14.49 billion profit before tax and N14.24 billion profit after tax demonstrate the Fund’s ability to generate returns while growing its asset base.

The question for the housing market, however, is how much of that financial capacity can ultimately be converted into affordable mortgages and additional housing supply.

This distinction will remain important as policymakers seek to use institutional capital to address Nigeria’s housing shortage.

Greater mortgage access could support housing supply

Expanding mortgage finance has implications beyond individual homebuyers.

A deeper pool of mortgage-financed buyers can improve developers’ ability to plan and sell housing projects, particularly in the affordable and middle-income segments.

If mortgage institutions can provide predictable long-term financing, developers may be better positioned to undertake larger projects because the potential buyer pool is not limited to households with sufficient cash to purchase properties outright.

The impact would be strongest if mortgage products align with household incomes and property prices.

Outlook

MBAN’s position places greater emphasis on the developmental purpose of MREIF as Nigeria seeks to deepen housing finance.

The Fund’s strong first-half financial performance provides an important foundation, but the wider housing sector will ultimately judge its impact by the volume of affordable mortgages created, homes financed and households brought into formal homeownership.

For Nigeria’s housing market, the next phase will depend on MREIF’s ability to deploy more capital into mortgages while maintaining strong underwriting, property verification and risk-management standards. If achieved, greater institutional participation could improve housing-market liquidity and support the delivery of more affordable homes.

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