MOFI raises N100bn from private investors for real estate

The MOFI Real Estate Investment Fund has successfully raised N100bn from private investors in its fully subscribed Series 2 issuance, marking a significant milestone in mobilising private sector capital for Nigeria’s housing sector.

The issuance is part of MREIF’s NGN250bn pilot fundraising, aimed at bridging the country’s housing finance gap.

The announcement was contained in a statement signed by Sani Yakubu, Executive Director (Co-ordinator), MREIF, on Thursday.

The statement read, “The MOFI Real Estate Investment Fund has successfully closed its N250bn pilot fundraising, attracting strong private sector participation under a N100bn issuance tranche.”

According to the statement, the Series 2 issuance witnessed strong institutional investor participation, reflecting market confidence in the fund’s structure and long-term potential.

The fund holds an Aaa rating from Agusto & Co. and an AA rating from Global Credit Rating, positioning it as a credible and market-driven investment platform.

Unlike the N150bn Series 1 issuance, which was solely backed by MOFI, the Series 2 offer attracted private sector investors, reinforcing MREIF’s role in mobilising long-term capital for affordable housing finance.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the full subscription of the Series 2 offer reflects pent-up demand for structured housing finance solutions and investor confidence in MREIF’s model.

“The successful close of this pilot phase marks the beginning of a long-overdue transformation of Nigeria’s housing sector,” he said. “With this initiative, we are unlocking private capital and positioning MREIF as a sustainable, market-driven investment vehicle.

“The full subscription of the Series 2 offer demonstrates that Nigeria’s private sector is ready to invest in structured, long-term housing finance solutions that will provide affordable homeownership opportunities to Nigerians.”

MREIF is structured to address key housing finance constraints by offering affordable mortgage financing with repayment tenors of up to 20 years at interest rates as low as 12 per cent, significantly below commercial lending rates.

The fund also provides off-take guarantees for developers, reducing risk exposure and unlocking capital for large-scale housing projects.

Managing Director and Chief Executive Officer of MOFI, Dr Armstrong Ume Takang, said the fully subscribed issuance signals strong investor confidence in MREIF as a platform for mobilising housing finance at scale.

“MREIF is unlocking new investment frontiers in Nigeria’s housing sector,” he said. “This fully subscribed Series 2 issuance demonstrates investor confidence in the fund’s structure and long-term potential, which MOFI fully supports.”

With MREIF’s NGN1tn multi-tranche programme now in motion, the fund’s next phase will focus on expanding private sector participation and accelerating large-scale housing development. The fund is structured to integrate with commercial banks, mortgage providers, developers, and financial institutions to strengthen long-term housing finance.

MREIF is expected to play a key role in closing Nigeria’s housing deficit by providing structured capital for affordable housing initiatives.

The MOFI Real Estate Investment Fund is a Securities and Exchange Commission-approved investment fund designed to expand homeownership and strengthen Nigeria’s housing finance sector.