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Housing

MOFI Unveils Shariah-Compliant Housing Fund for Nigerians in Diaspora

Strategic Insights

— 1 min read

The Ministry of Finance Incorporated (MOFI) has announced plans to launch a shariah-compliant version of its flagship housing initiative, the MOFI Real Estate Investment Fund (MREIF). This move aims to address Nigeria's chronic housing shortage, estimated at 20 million units, by offering long-tenor mortgages at reduced rates. The fund, which has already begun disbursing loans through select financial institutions, will now include Nigerians in the diaspora in its mortgage disbursements. MOFI's Chief Executive Officer, Armstrong Ume Takang, emphasized that the fund's structure is designed to address the underlying weaknesses in Nigeria's housing sector, including liquidity constraints, poor corporate governance, and shallow secondary mortgage markets.

Key Takeaways:

  • The MOFI Real Estate Investment Fund (MREIF) plans to roll out a shariah-compliant version to include Nigerians in the diaspora, addressing the country's 20 million-unit housing shortage.
  • The fund, a $1 trillion public-private partnership (PPP), was established to lower barriers to homeownership and offer long-tenor mortgages at reduced rates.
  • MREIF has already begun disbursing loans through select financial institutions, with ?250 billion raised and is currently active across three geopolitical zones.
  • The fund operates independently of MOFI, with private sector firms overseeing fund management, financial advisory, legal structuring, and project execution.
  • Eligible Financial Institutions (EFIs) working with MREIF include top-tier banks and mortgage lenders like Access Bank, FCMB, and AG Mortgages.
  • The introduction of a non-interest financing option aims to unlock a new pool of capital and meet the growing demand from Nigerians abroad seeking ethical, faith-aligned housing finance.

Statistics:

  • Nigeria's housing shortage is estimated at 20 million units ()
  • The MOFI Real Estate Investment Fund (MREIF) has raised ?250 billion to date
  • The fund is currently active across three geopolitical zones

Sources:

  • "MOFI Unveils Shariah-Compliant Housing Fund for Nigerians in Diaspora" (Original article)
  • Armstrong Ume Takang, MOFI Chief Executive Officer
  • Agusto and Co rating
  • Global Credit Ratings (GCR) rating
  • The Africa International Housing Show

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