The Ministry of Finance Incorporated (MOFI) is set to leverage the capital market to address Nigeria’s housing deficit and secure funding for large-scale housing projects.
The Chief Executive Officer of MOFI, Dr Armstrong Takang, disclosed this when senior members of the Housing Development Advocacy Network (HDAN) visited his office in Abuja.
Takang said the MOFI Real Estate Investment Fund (MREIF) is a key component of the One Million Homes Presidential Initiative, which is designed to expand access to affordable housing through innovative financing solutions.
According to him, MREIF will operate as a market-driven framework that brings together pension funds and other resources within the financial sector to provide affordable mortgage options, particularly for pension account holders.
He described the fund as an important step towards expanding homeownership opportunities and addressing some of the long-standing challenges affecting Nigeria’s housing sector.
Takang said transparency and market efficiency would form the foundation of MREIF’s operations, with the aim of strengthening the mortgage market and creating sustainable pathways to homeownership.
To support the development of the fund, he said the government had engaged key stakeholders from the pension and financial sectors.
Those involved include the Accountant General of the Federation, Dr Oluwatoyin Madein, as well as Wale Odutola of ARM Pensions, Funmi Ekundayo of STC Trustees and Saadu Jijji of PAL Pensions.
Takang said their experience in fund management, real estate financing and investment advisory would contribute to determining the structure and deployment of the fund.
MREIF to Offer Lower-Interest Mortgages
According to the MOFI chief executive, MREIF presents an opportunity for pension account holders to access mortgage loans at reduced interest rates.
He said the approach was designed to break down some of the barriers that have prevented many Nigerians from accessing affordable homeownership.
The initiative, he added, is consistent with the Federal Government’s broader objective of developing a more inclusive and sustainable housing sector.
MOFI also plans to work closely with major housing agencies, including Family Homes Funds Ltd. and the Federal Mortgage Bank of Nigeria.
Takang said MOFI would also support Primary Mortgage Institutions (PMIs) by strengthening their operational capacity to enable them respond to the increasing demand for affordable housing.
HDAN Commends Capital Market Approach
Earlier, HDAN commended the Federal Government for its ₦250 billion commitment towards addressing the housing deficit.
The organisation said MOFI’s proposed approach was consistent with its advocacy objectives, particularly the use of the capital market as a source of housing finance.
“We are happy that MOFI is ready to raise money from the capital market, which is one area that has not been tapped in Nigeria,” HDAN said.
The group expressed optimism that the initiative would contribute to developments in affordable housing and mortgage financing.
However, HDAN cautioned MOFI to learn from previous Federal Government housing programmes and ensure that experienced professionals and estate developers with proven records of delivery are involved in the implementation.
Developers Urged to Support One Million Homes Initiative
The Executive Director of HDAN, Festus Adebayo, commended MOFI for its proactive approach and called on estate developers to support the Federal Government’s one million homes initiative.
He urged stakeholders in the property sector to work together to ensure the success of the programme.
According to the group, collaboration between the Federal Government, MOFI and other stakeholders could lead to significant progress in housing development.
Land Titling Remains a Major Challenge
The former Chairman of the Federal Government Reform Committee on Land, Dr Ugochukwu Chime, also highlighted the need for MOFI to address challenges surrounding land titling.
Chime said difficulties associated with land titles had become a major obstacle to accessing housing funds.
He stressed that resolving land-related issues would be important to the success of the new housing financing initiatives.
Another stakeholder at the meeting, Emmanuel Akinwumi, called on the government to review outdated housing and mortgage laws.
He said updating the legal framework would help improve the performance of the housing sector and support the successful implementation of the new initiatives.
Through the proposed collaboration between MOFI, government housing agencies, financial institutions, pension funds, mortgage institutions and private-sector stakeholders, the initiative is expected to create new financing opportunities and expand access to affordable housing for Nigerians.
