MOFI Real Estate Fund In 2026: N128 Billion in Mortgages at 9.75%
Here’s how the programme works, who qualifies, and what it means for buyers and investors.Nigeria has a mortgage problem. Commercial banks charge 25–30% annual interest on home loans, and the CBN’s benchmark rate sits at 26.5% as of February 2026. With most Nigerians earning between N70,000 and N200,000 per month, a standard commercial mortgage requires monthly repayments that are mathematically out of reach for the majority of the population.
The result: fewer than 5% of Nigerians have ever accessed a formal mortgage. The MOFI real estate fund programme is the government’s attempt to change that. Furthermore, the early numbers suggest it is actually working.
Monthly repayment comparison on a N16 million mortgage. Source: MREIF Q1 2026 Interim Report, African Financials.
What the MOFI Real Estate Fund Has Done So Far
President Bola Tinubu confirmed in June 2026 that 1,859 households across 25 states have drawn N128 billion in mortgages through the MOFI Real Estate Investment Fund, at a fixed rate of 9.75%, repayable over 20 years. To put that rate in context: commercial banks in Nigeria currently charge 25–30% annually. MREIF’s rate, therefore, is less than half of the lowest commercial rate available.
The MOFI Real Estate Investment Fund’s Q1 2026 interim report shows that, as of March 31, 2026, the fund held N101 billion in mortgage loans on its balance sheet, with a closing Net Asset Value of N261.81 billion. The fund’s total target is N1 trillion in mortgage financing, and what is already deployed represents significant early progress toward that goal.
How the MOFI Real Estate Fund Works
The MOFI Real Estate Investment Fund is a public-private partnership structured to mobilise capital from institutional investors while maintaining government backing. Nigeria Housing Market describes it as a blended finance model that combines subsidised public funding with private sector investment at market rates. This blended structure, in turn, is what allows MREIF to offer 9.75% to borrowers while still delivering returns to institutional investors.
The fund also lists on the Nigerian Stock Exchange (NGX), which, according to MOFI’s official statement, enhances the fund’s visibility, liquidity, and investor diversification, creating opportunities for both institutional and retail investors, including the Nigerian diaspora, to participate.
Who Qualifies for MREIF Financing
The fund targets low and middle-income Nigerians who cannot access commercial mortgage financing at prevailing rates. To qualify, applicants generally need the following:
- Verifiable income — through employment or documented business income
- Minimum 10% down payment on the property being purchased
- A property that meets MREIF valuation standards and eligibility criteria
- Standard documentation — identification, proof of income, and property documents
Applications are processed through participating banks. The fund does not lend directly to individuals; instead, it provides liquidity to banks and mortgage institutions, which then on-lend to qualifying buyers at the 9.75% rate. Disbursements commenced in May 2025, and by Q4 2025, the fund had created over 1,000 mortgages, with disbursements of N23 billion in that quarter alone, according to the MREIF Q4 2025 interim report.
MOFI vs Commercial Mortgages: The Numbers That Matter
Here is a direct comparison on a N20 million property purchase, with a N4 million down payment and N16 million borrowed:
The difference is striking: roughly N195,000 less per month, and approximately N26 million less in total interest. On a single N20 million property, therefore, the MREIF rate saves a borrower enough to buy land for another property entirely in secondary markets like Ibadan.
Where MREIF Fits in Nigeria’s Wider Housing Push
MREIF is one part of a broader government housing programme under President Tinubu’s Renewed Hope Agenda. Nigeria Housing Market reported that the government is approaching a milestone of 100,000 homes delivered, while BusinessDay confirmed that more than 15,000 housing units are currently under construction nationwide. These include a 2,000-unit Renewed Hope City project in Ibeju-Lekki, Lagos, nearing completion, over 3,000 housing units under construction in Karsana, Abuja, and a first phase targeting 50,000 homes through housing cities of 1,000 units in each geopolitical zone.
Real estate and construction now sit among Nigeria’s major GDP contributors, proving that every affordable home financed is also a factory order, a labour contract, a mortgage asset, a household balance sheet and a contribution to national output.
President Bola Tinubu — via BusinessDayThe government’s target of one million homes cannot be achieved without financing access. MREIF, in short, is the mechanism designed to make that financing possible.
What MOFI Real Estate Fund Nigeria 2026 Means for Property Buyers
For buyers who qualify, MREIF changes the affordability calculation entirely. A monthly repayment of N152,000 on a N16M loan at 9.75% is within reach for a household earning N500,000 per month. The equivalent commercial rate repayment of N347,000, by contrast, simply is not.
As MREIF scales toward its N1 trillion target, more qualified buyers gain purchasing power. This increases demand, particularly in the N15M–N40M property range where MREIF financing is most practical. As a result, sellers and developers in this price segment benefit from a growing buyer pool.
MREIF financing can be structured for off-plan purchases where the developer meets MREIF’s verification requirements. Consequently, buyers can lock in property prices now and begin drawing down financing at the 9.75% rate on completion.
The fund’s N1 trillion target, if fully deployed, represents a substantial injection of purchasing power into the housing market. Naturally, developers building in the affordable and mid-market segment are the primary beneficiaries of this shift.
What This Means for Real Estate Investors
As MREIF enables more buyers in the N15M–N50M property range, this segment sees growing demand relative to supply. Properties in this range, particularly in Ibadan, Abuja, and expanding Lagos corridors, may benefit from this expanding buyer base.
Developer risk profile improves too. Developers with properties that qualify for MREIF financing face less buyer financing risk, since their buyers have access to structured 20-year mortgages rather than relying on informal savings or short-term arrangements. Above all, MREIF-eligible properties carry a premium: a property that qualifies for MREIF financing is more liquid than one that does not, because it appeals to a wider pool of buyers who can access subsidised financing.
If you’re weighing financing options more broadly, MKH Properties’ guide to real estate financing solutions for Nigerians covers additional strategies worth considering alongside MREIF.
The Limitations to Understand
MREIF is a significant step forward, but it comes with real limitations that buyers and investors should weigh honestly.
N128 billion to 1,859 households addresses a fraction of the 22–28 million unit deficit. The fund is scaling, but the structural gap between housing supply and demand will take decades to close.
Properties must meet MREIF valuation standards and be purchased through participating lenders. Not all developers or property types are eligible at this stage.
MREIF makes financing more accessible but does not address the supply problem created by soaring construction costs. A buyer with MREIF financing still faces a market where new builds cost considerably more to construct than two years ago.
As Nigeria Housing Market notes, successful implementation will depend on governance standards, transparency, and the ability to scale efficiently across regions.
The Bottom Line on MOFI Real Estate Fund Nigeria 2026
The MOFI Real Estate Investment Fund represents the most meaningful shift in Nigerian housing finance in years. With N128 billion already disbursed to 1,859 households at 9.75% fixed rates, the proof of concept clearly exists. The remaining question is whether it can scale to meaningfully address a 22–28 million unit deficit.
For buyers who qualify, MREIF is the most affordable formal mortgage in Nigeria’s market, significantly cheaper than any commercial alternative. For investors, MREIF’s expansion signals growing mid-market demand that benefits property values in qualifying segments. The data in 2026 shows a government programme that is actively disbursing, listing on the stock exchange, and attracting institutional capital. Whether it reaches its N1 trillion target will ultimately define whether MREIF becomes a structural solution or a well-intentioned pilot.
- Voice of Nigeria — “1,859 Households Secure N128 Billion Housing Loans,” June 2026
- BusinessDay — “FG Constructs 15,000 Houses Across Nigeria,” June 2026
- African Financials — MOFI Real Estate Investment Fund Q1 2026 Interim Report, April 2026
- African Financials — MOFI Real Estate Investment Fund Q4 2025 Interim Report, February 2026
- Nigeria Housing Market — “Edun Advocates Broader Access to Low-Cost Mortgages via MOFI Fund,” April 2026
- Nigeria Housing Market — “Tinubu Hails Renewed Hope Housing Milestone,” June 2026
- MOFI official website — NGX listing announcement
- MREIF official website — Programme overview
- Nairametrics — “Nigeria’s real estate faces 2026 consolidation,” April 2026
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