Finance ministry launches N250bn housing fund

• Published On: 02 January 2025 at 07:25

The Federal Government of Nigeria has established the N250 billion Real Estate Investment Fund through the Ministry of Finance Incorporated.

This was revealed in a statement signed by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, on Tuesday.

According to the statement, Finance Minister Wale Edun's initiative, announced on December 31, 2024, aims to close the country's housing finance gap, promote affordable housing, and boost economic growth.

Edun emphasised that the N250 billion Ministry of Finance Incorporated Real Estate Investment Fund is intended to address Nigeria's housing affordability and accessibility issues.

He stated that the fund will provide long-term, low-cost mortgage financing with repayment terms of up to 25 years, addressing the limitations of commercial banks' traditional short-term, high-interest loans.

The N250 billion Ministry of Finance Incorporated Real Estate Investment Fund will be launched in two phases: an initial N150 billion for private sector participation, followed by a second phase of N100 billion.

The minister stated that the initiative supports President Bola Tinubu's agenda of encouraging homeownership, creating jobs, and boosting economic growth through housing and construction.

The statement read, "The Federal Government has taken a significant step towards addressing Nigeria's Housing Finance Gap with the launch of the Ministry of Finance Incorporated Real Estate Investment Fund, a N250 billion initiative designed to provide low-cost, long-term mortgage financing and stimulate economic growth through the housing and construction sectors."

"The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, presided over the signing ceremony in his office in Abuja, emphasising that the initiative addresses Nigeria's housing finance gap by providing mortgages with repayment terms of up to 25 years. This contrasts sharply with the high-interest, short-term loans currently available from commercial banks.

"The first series of the fund, totalling N150 billion, is expected to increase private sector participation, with the second series expected to raise an additional N100 billion.

"The programme is consistent with President Bola Tinubu's vision of encouraging homeownership, creating jobs, and promoting economic development.

"Described as a public-private partnership, the fund aims to incentivise developers to build affordable homes, thereby creating jobs and increasing commercial activity in the real estate and construction industries."

Dr Armstrong Takang, Managing Director of MOFI, described the fund as a transformative step in addressing Nigeria's housing deficit and enabling Nigerians to achieve long-term homeownership.

Takang emphasised that the initiative would help citizens build generational wealth by making mortgage financing more accessible and affordable, promoting long-term economic empowerment.