The Ministry of Finance Incorporated (MOFI), Family Homes Funds Limited (FHFL), and the Asset & Resource Management Holding Company Limited (ARM) have unveiled plans to ease mortgage terms for Federal civil servants in Nigeria under the MOFI Real Estate Investment Fund (MREIF).
ARM represents MREIF in the arrangement, being the designated Fund Managers.
This development follows extensive consultations with key stakeholders aimed at continuously improving the terms for accessing mortgages under the MOFI Real Estate Investment Fund (MREIF) for Federal Civil Servants.
The goal of this agreement is in full alignment with the central goal of MREIF, which is to expand access to housing for Nigerians on a mass scale through a credible and innovative financing model.
Expanding Access by Lowering Interest Rate, Equity Contribution
The agreement seeks to actualise key objectives, which include lowering the interest rate and equity contribution required from homebuyers, creating a framework to deliver mortgages at more affordable interest rates through blended finance solutions, and contributing to the One Million Homes Housing Project, a major component of the Renewed Hope Agenda.
A Result-Driven Partnership
The structure of this formal collaboration features MOFI, FHFL, and MREIF.
To address the equity contribution barrier, both MREIF and FHFL will jointly provide significant portions of the required mortgage funding, leaving homebuyers with a convenient equity contribution of only 10%. Additionally, this arrangement reduces the interest rate for civil servants to a single digit.
The interest rate reduction strategy includes blending funding sources with varying cost of capital, allowing loans to be delivered at significantly reduced interest rates. FHFL’s access to a funding line from the African Development Bank (AfDB) will play a vital cost-lowering role here.
As a mortgage scheme, a well-structured loan distribution and management plan has been proposed, which will feature engagement of Partner Mortgage Lenders to grant the mortgage loans, with all loans made to comply with the Nigeria Mortgage Refinance Company (NMRC)’s underwriting standards.
Towards Lasting Impact
Commenting on the partnership, MOFI’s CEO, Dr. Armstrong Takang, described it as a “strategic cost-management intervention” for civil servants and other beneficiaries within the band.
On his part, FHFL’s MD, Mr. Abdul Mutallab Mukhtar, stated that through the arrangement, Federal civil servants would finally “realise their dream of owning decent homes”.
ARM’s Deputy Managing Director, Wale Odutola, expressed ARM’s confidence in delivering an impactful financing solution through MREIF, which he described as “a credible vehicle for lasting impact”.
About MREIF
The MOFI Real Estate Investment Fund (MREIF) is a Securities and Exchange Commission (SEC)-approved and regulated fund designed to expand homeownership and strengthen Nigeria’s housing sector. With an AAA rating from Agusto and an AA rating from GCR, MREIF has established itself as a highly credible, market-driven investment platform to address Nigeria’s housing finance gap.
By bringing together public and private sector capital, MREIF aims to make affordable housing more accessible to Nigerians while supporting economic growth. With NGN250 billion already raised and over 100 mortgage finance disbursements made across three geopolitical zones, MREIF is a key driver of investment in long-term housing finance and reducing Nigeria’s housing deficit.
To begin your mortgage application with MREIF, call 02013305005, visit mreif.com.ng, or email [email protected].
