By Moses Nosike

The Nigerian chapter of the Durham University Alumni recently hosted a webinar focused on unlocking opportunities within the Ministry of Finance Incorporated Real Estate Investment Fund (M-REIF); a ₦150 billion initiative designed to bridge Nigeria’s housing gap and promote affordable homeownership.

Tackling Nigeria’s 28 million Housing Deficit

Mrs. Funmi Oyetunji, the Chairperson of the Investment Committee of the Fund, a keynote speaker at the event, underscored the gravity of Nigeria’s housing deficit, estimated at 28 million units. She attributed the shortage to rapid urbanization, a booming population, and persistent macroeconomic challenges.

She said, “To address this challenge, the Federal Government launched M-REIF, a fund that supports both the supply and demand sides of the housing sector by offering long-term, affordable mortgage financing and supporting qualified developers”.

Fund Structure and Progress

She explained that the fund, currently totalling ₦250 billion, is managed by private sector institutions, with the Federal Ministry of Finance as sponsor. Series 1 of the funds, valued at ₦150 billion, has been fully disbursed, while Series 2, aimed at institutional investors, has also been fully subscribed. ARM serves as fund manager, with oversight provided by an independent Investment Committee. To date, four financial institutions have been onboarded, over 100 mortgages have been disbursed, and disbursements totalling ₦4 billion are underway. The fund primarily targets buyers in Lagos, Abuja, Kano, Rivers, Enugu, and Abia states”.

Support for Developers and Homebuyers

M-REIF also offers conditional off-take guarantees of up to 40% to approved developers, thereby enhancing their creditworthiness and capacity to raise capital. Strict due diligence ensures that only credible developers with strong track records are supported.

Loans from the fund are capped at 12% interest annually, for a tenor of up to 20 years, and require a minimum equity contribution of 20% of the property’s value. Notably, home buyers can access 25% of their retirement savings account to meet this equity requirement. Couples can also submit joint applications, and barriers such as minimum salary thresholds have been removed to expand access.

Governance and Participation

Mrs. Oyetunji also spoke on the fund’s governance structure, which includes an Investment Committee and Advisory Board. She encouraged interested homebuyers and developers to register and apply via the M-REIF portal. A minimum of 100 housing units are required for developer participation, although smaller developers in peri-urban areas are also being considered.

Calls for Equity-Based Alternatives

Dr. Ayo Teriba, another panelist and a Durham Alumnus, raised thought-provoking points about the fund’s debt-heavy structure. He advocated for a shift towards equity-based financing to ensure greater sustainability and reduce dependence on debt.

Highlighting Nigeria’s debt profile of ₦141 trillion, Dr. Teriba emphasized the need to leverage national assets more strategically. He urged a national pivot towards equity finance across both corporate and household sectors and referenced his role in shaping the MOFI’s efforts to establish counterbalancing mechanisms.