MREIF Disburses N140bn in Mortgages to Over 2,000 Nigerians

MREIF expands mortgage financing to more than 2,000 Nigerians

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

Olubiyi Adekunbi, Head of Real Estate Investment at ARM Investment Managers, disclosed the figures during a FirstBank webinar focused on pathways to home ownership and the use of mortgage finance to build long-term household wealth. The beneficiaries are spread across Nigeria’s six geopolitical zones, although Lagos and Abuja account for the largest share of applications.

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The expansion represents a significant development in Nigeria’s mortgage market, where high financing costs, limited long-term credit and inadequate housing supply have historically restricted access to home ownership.

MREIF Mortgage Disbursements Begin in 2025

MREIF began disbursing mortgages in April 2025 after its establishment as a Federal Government-backed investment vehicle designed to mobilise long-term capital for the real estate and housing finance sectors.

The fund has since expanded its mortgage reach to properties in 27 states. Eligible properties are not restricted to Lagos and Abuja, with applicants in states including Ogun, Oyo, Enugu, Kano and Kaduna able to access financing, subject to the scheme’s requirements.

Adekunbi said the fastest mortgage transaction completed under the programme took less than three weeks, although applicants must provide the required documentation and pass the necessary due diligence checks before approval.

The development signals an attempt to make mortgage processing more predictable while expanding access beyond Nigeria’s traditional property markets.

MREIF Mortgages Offer Up to N100m at 9.75%

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

Applicants are required to provide at least 10 per cent equity towards the property purchase. Contributors to the Contributory Pension Scheme can also use up to 25 per cent of their Retirement Savings Account balance to meet the equity requirement, subject to applicable conditions.

MREIF limits its financing exposure to N100 million per property. Buyers purchasing properties above that threshold must fund the difference through other sources.

The relatively long repayment period is important because mortgage affordability depends not only on the interest rate but also on the duration over which borrowers can spread repayments.

Mortgage Access Extends Across 27 States

The geographical reach of the scheme is one of the notable features of the latest disbursement figures.

While Lagos and Abuja continue to attract the largest number of applications, MREIF financing is now available for qualifying properties across 27 states.

This wider reach could support housing-market development in secondary cities and emerging urban centres, where formal mortgage penetration has historically remained relatively limited.

For developers, access to mortgage finance outside the largest markets could also improve the pool of potential buyers for qualifying housing projects.

However, expanding mortgage availability across states will require corresponding improvements in land documentation, housing supply, property valuation and supporting infrastructure.

Nigeria Needs More Housing Finance

The mortgage expansion comes against a substantial gap between the number of homes Nigeria needs and the number delivered annually.

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

The disparity highlights the need to address both sides of the housing market.

Increasing mortgage availability can strengthen demand by giving households access to long-term financing, but financing alone cannot close the supply gap. Developers also need access to affordable development finance, serviced land, infrastructure and reliable construction inputs.

The success of MREIF will therefore depend partly on whether greater access to mortgages encourages developers to increase the supply of homes that meet the purchasing capacity of eligible borrowers.

Government Provides N150bn for First Tranche

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

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

The structure is intended to mobilise additional private capital into Nigeria’s housing and mortgage sectors rather than relying solely on government funding.

This blended approach could become increasingly important as the scale of Nigeria’s housing challenge exceeds the capacity of annual public budgets.

By using public capital to support a larger investment platform, the fund can potentially attract institutional investors and other sources of long-term capital into housing finance.

MREIF Reports N14.49bn Profit

The mortgage disbursement expansion coincides with strong reported financial performance by the fund.

MREIF recorded N14.49 billion in 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 another N6.21 billion. Profit after tax reached N14.24 billion after a withholding tax charge of N250.5 million.

The financial performance provides an indication of the fund’s ability to generate returns while pursuing its housing-finance mandate.

FirstBank Partnership Broadens Mortgage Access

MREIF has also partnered with FirstBank to expand access to mortgage financing for eligible Nigerians.

The partnership provides another channel through which potential homeowners can access loans of up to N100 million under the MREIF framework.

Partnerships with commercial banks remain important because banks provide the customer-facing infrastructure required to originate, assess and administer mortgage loans.

For the mortgage market, stronger collaboration between government-backed funds and financial institutions could help address some of the structural barriers that have limited mortgage penetration in Nigeria.

Land Documentation Remains Critical

Mortgage availability alone cannot solve Nigeria’s housing finance challenges.

MREIF requires applicants to provide valid land titles and clear ownership documentation for properties financed through the scheme.

This requirement highlights the continuing importance of land administration to Nigeria’s property market.

Poor documentation can prevent properties from qualifying for formal financing, limit their marketability and make it more difficult for homeowners to use their properties as collateral.

Improving land registration and title processing would therefore complement the expansion of mortgage finance by increasing the number of properties that can participate in the formal housing market.

Mortgage Growth Could Support Housing Supply

Greater access to mortgage finance can influence the housing market from both the demand and supply sides.

For households, affordable long-term loans improve the ability to purchase homes without bearing the entire cost upfront.

For developers, a deeper mortgage market can provide greater confidence that completed properties will have a pool of financed buyers.

This relationship can become particularly important for large-scale housing projects. Developers can structure projects around the financing capacity of target buyers when mortgage products provide predictable interest rates and longer repayment periods.

However, housing prices must remain compatible with borrowers’ incomes for this mechanism to work effectively.

Affordability Remains a Major Challenge

Despite the expansion of mortgage financing, affordability remains one of the central challenges confronting Nigeria’s housing market.

A mortgage rate below prevailing commercial lending rates can improve affordability, but the price of the underlying property remains equally important.

Construction costs, land prices, infrastructure expenses and financing costs all contribute to final housing prices.

If these costs continue to rise faster than household incomes, a growing mortgage market may still leave many households unable to qualify for financing or comfortably service their loans.

The broader housing strategy therefore needs to combine mortgage finance with measures that reduce the cost of producing homes.

MREIF Could Strengthen Secondary Housing Markets

The expansion to 27 states could have a broader effect on Nigeria’s property market if mortgage availability encourages formal housing development outside Lagos and Abuja.

Secondary cities offer opportunities for developers because land availability and development costs can differ from those in the country's largest metropolitan markets.

However, mortgage penetration in these locations will depend on several factors, including employment stability, property documentation, valuation standards and the availability of suitable housing stock.

Expanding mortgage finance alongside these supporting systems could help develop deeper and more formal housing markets across the country.

Outlook

MREIF’s disbursement of more than N140 billion to over 2,000 Nigerians represents a significant expansion of formal mortgage financing in Nigeria.

The programme has demonstrated that government-backed capital can be channelled through financial institutions to provide longer-term and lower-cost housing finance, while its presence across 27 states gives it the potential to influence housing markets beyond Lagos and Abuja.

The next challenge is scale.

Nigeria needs substantially more housing each year than current production delivers, meaning mortgage finance must expand alongside housing construction, land administration, infrastructure provision and household incomes.

If MREIF can continue attracting private capital while maintaining affordable financing terms, it could become an important component of Nigeria’s long-term housing finance architecture and help create a stronger connection between home buyers, financial institutions and housing developers.

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