Mortgage banks in Nigeria have called on the MOFI Real Estate Investment Fund (MREIF) to accelerate the delivery of affordable mortgage financing, saying the Fund’s long-term success should be measured by its impact on housing finance rather than profitability alone.
The Mortgage Banking Association of Nigeria (MBAN) made the call while reacting to MREIF’s half-year 2026 financial performance, which recorded strong earnings and asset growth.
MBAN Commends Strong Financial Performance
MREIF reported a profit before tax of ₦14.49 billion and a profit after tax of ₦14.24 billion for the first half of 2026.
The Fund also declared interim dividends and increased its Net Asset Value (NAV) per unit to ₦106.71.
MBAN described the results as evidence of sound financial management but stressed that the Fund was established primarily to expand access to affordable mortgages and boost homeownership in Nigeria.
Call for Faster Mortgage Lending
According to the association, although MREIF increased its mortgage portfolio by 86 per cent within six months, a significant proportion of its assets remains invested in cash and investment securities instead of mortgage loans.
MBAN noted that much of the Fund’s income during the period came from interest earned on investments rather than mortgage lending, indicating there is room to deploy more capital toward housing finance.
The association urged MREIF to increase mortgage creation to better address Nigeria’s housing deficit while remaining focused on its developmental mandate.
Balance Growth With Risk Management
MBAN cautioned that expanding mortgage lending should not come at the expense of prudent underwriting and effective risk management.
It said sustainable mortgage financing requires robust credit assessment, proper legal documentation, property verification and efficient operational processes to protect investors’ funds while expanding access to homeownership.
Stakeholder Collaboration Needed
The association also called for stronger engagement between MREIF and primary mortgage banks, saying regular collaboration would improve transparency, strengthen implementation and enhance the Fund’s overall impact.
MREIF was established to mobilise long-term capital for affordable housing, deepen Nigeria’s mortgage market and provide low- and middle-income earners with access to long-term mortgage financing through a public-private partnership model.
