The Ministry of Finance Incorporated (MOFI) has entered a strategic partnership with Shelter Afrique Development Bank, formalising a commitment to tackle the country’s housing deficit through the MOFI Real Estate Investment Fund (MREIF).
Together, they aim to narrow Nigeria’s estimated 17–20 million housing deficit and create a model that can be replicated across the continent.
The new collaboration aims to mobilise structured financing and risk-sharing mechanisms to address both the demand and supply challenges in Nigeria’s housing market.
The partnership, sealed through a Memorandum of Understanding (MoU) in Abuja on Wednesday, will enhance MREIF’s capital mobilisation efforts, which have already seen tremendous success.
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Following the fully subscribed ₦150 billion Series 1 and ₦100 billion Series 2 funding rounds, MREIF has attracted significant institutional investor interest, cementing its position as a leading vehicle for affordable housing finance in the country.
The fund has earned solid ratings from major agencies, including AAA from Agusto and AA from GCR.
At the ceremony, Armstrong Takang, MOFI CEO emphasised that solutions to Africa’s challenges, particularly in housing, must be driven by African institutions.
He highlighted the substantial progress already made by the MREIF, which has raised ₦250 billion in its first two funding rounds, signalling strong investor confidence in the fund’s potential to tackle Nigeria’s housing shortage.
Takang also stressed the importance of this initiative being locally funded, allowing for mortgages with low interest rates of around 4% and long tenors.
“This is a solution that uses local currency, allowing us to issue mortgages at scale, at affordable rates, which is crucial for addressing the housing deficit in Nigeria,” he said.
He also outlined that the program supports both the demand and supply sides of housing.
On the supply side, MOFI provides off-take guarantees to developers, who can then access construction financing from institutions like Shelter Afrique.
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This guarantees that developers working on affordable housing projects, particularly those targeting middle- and low-income Nigerians, can secure construction financing from financial institutions.
“This is where Shelter Afrique comes in, providing the crucial construction financing once developers have secured off-take guarantees from MREIF,” Takang stated.
Shelter Afrique, which officially became a full-fledged development bank in October 2023, counts 44 African countries as shareholders, including Nigeria and Kenya, as its largest stakeholders.
Speaking to this strategic collaboration, Thierno-Habib Hann, Shelter Afrique’s Managing Director called the partnership a “strategic alignment” between two institutions with a bold vision for the future of housing and urban development across Africa.
“We are not just signing a document. We are building a bridge between strategic capital and critical national needs,” Hann said, underscoring the critical role Nigeria plays in Shelter Afrique’s broader continental strategy.
With its dynamic economy, infrastructure ambitions, and leadership, Nigeria is positioned to lead in transforming housing ecosystems across the continent, he noted.
Hann further praised Nigeria’s growing role in the development of Shelter Afrique, highlighting its position as one of the bank’s two largest shareholders.
“Together, we are committed to result-driven collaboration that will focus on designing and delivering impactful projects, structuring innovative financing models, and enhancing the investment attractiveness of the housing sector,” he said.
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Drawing attention to the broader impact of the partnership, Hann stated, “Housing is not merely about shelter; it’s about creating economic opportunity, boosting productivity, strengthening resilience, and fostering dignity.”
ARM Investment Managers, the fund manager for MREIF, noted that over 100 mortgages have already been disbursed ranging between N50m to N100m.
“Seven financial institutions including Infinity Mortgage Bank, Stanbic IBTC, AG Mortgage, and Access Bank are already onboard, with discussions ongoing with others like Wema Bank.
“This is a streamlined, digital-first housing finance model. Nigerians can log on to the MREIF portal, browse developer-listed homes, and connect directly to mortgage lenders. That kind of ease and transparency is new to the market,” Kai Orga, ARM Managing, Director stressed at the event.
