The Federal Government of Nigeria Opens ₦1 Trillion Housing Investment Fund to Retail Investors
The Federal Government of Nigeria has expanded access to its ₦1 trillion Ministry of Finance Real Estate Investment Fund (MREIF), enabling retail investors to participate alongside institutional players in one of the country’s most ambitious housing initiatives to date. The move aims to deepen financial inclusion, attract long-term private capital, and make homeownership more attainable for Nigerians.
Announced on Monday, the MREIF initiative marks a major policy step towards democratizing access to real estate investment opportunities. Through its planned listing on the Nigerian Exchange (NGX), individual investors will be able to buy and trade units of the fund, a structure designed to stimulate liquidity and market participation across income levels.
Government officials explained that broadening investor participation will help mobilize sustainable capital for housing projects while reducing reliance on state funding. The fund’s structure also aims to enhance transparency through NGX’s disclosure requirements, positioning real estate as an attractive and investable asset class for both domestic and diaspora investors.
Reducing Mortgage Costs and Expanding Access
The MREIF will finance long-term, low-cost mortgages through approved banks and mortgage institutions, with repayment periods of up to 20–25 years. Interest rates are projected to remain between 11% and 12%, with a long-term goal of achieving single-digit lending for qualified borrowers.
According to government sources, the initiative will target both civil servants and eligible private sector employees, offering loans with minimal equity contributions to ease entry into homeownership. The fund’s affordability model aligns with the Renewed Hope Agenda of President Bola Tinubu’s administration, which prioritises affordable housing as a key lever of economic growth and social inclusion.
Mobilising Private Capital and Institutional Support
Initial funding for the MREIF was secured through previous capital rounds, supported by the Federal Ministry of Finance Incorporated (MOFI). The government aims to reach the ₦1 trillion target through a blend of public and private sector financing, with participation from pension funds, asset managers, and development finance institutions.
Officials say the initiative complements broader fiscal efforts to strengthen Nigeria’s capital markets and channel long-term savings into productive real estate investments. By doing so, it is expected to boost construction activity, generate employment, and strengthen the housing finance ecosystem.
Driving Economic Inclusion Through Real Estate
Analysts view the MREIF as a strategic instrument for achieving both economic and social goals. By linking private capital with affordable housing delivery, the fund could catalyse job creation, urban renewal, and financial sector deepening, while also providing investors with exposure to a resilient asset class.
The initiative represents a shift towards market-led housing finance, aligning with the government’s push to leverage capital markets for infrastructure and social investment.
Conclusion
The opening of the ₦1 trillion housing fund to retail investors underscores Nigeria’s evolving approach to housing finance one that merges policy with market mechanisms to address the country’s estimated 17 million-unit housing deficit. If effectively implemented, the MREIF could set a new precedent for inclusive housing investment and sustainable mortgage reform across Africa.
