Abuja: The Mortgage Banking Association of Nigeria (MBAN) has declared the Federal Government’s N250 billion Mortgage and Real Estate Investment Fund (MREIF) a transformative initiative poised to enhance housing accessibility across the nation. Aiming to address the significant housing deficit and rejuvenate the mortgage banking subsector, the fund is seen as a strategic intervention in the country’s housing landscape.
According to News Agency of Nigeria, MBAN, the recognized Self-Regulatory Organisation (SRO) for all mortgage banks licensed by the Central Bank of Nigeria (CBN), expressed its support for the initiative in a statement. President of MBAN, Mr. Ebilate Mac-Yoroki, and the secretary, Dr. Adedeji Ajadi, emphasized that the fund represents a strong political commitment to providing long-term, sustainable mortgage banking and housing finance solutions to Nigerians.
The initiative aligns with government objectives to mitigate Nigeria’s housing deficit while stimulating economic growth and employment
within the mortgage banking and real estate sectors. The N250 billion MREIF aims to attract long-term investments from the private sector and capital markets, such as pension funds operators and life insurance companies, complemented by low-cost government seed funding.
This innovative financing model is expected to facilitate the provision of mortgages at interest rates nearing single digits, with repayment periods extending up to 20 years, offering significant relief to potential homeowners currently facing high interest rates and affordability challenges.
MBAN underscores the importance of public-private collaboration in tackling national challenges like affordable housing. The association commended President Bola Tinubu for supporting home ownership and rent-to-own finance initiatives and acknowledged the contributions of the Minister of Housing and Urban Development, Ahmed Dangiwa, and the Managing Director of the Federal Mortgage Bank of Nigeria, Shehu Osidi, in advancing the administration’s housing
sector vision.
The association urged Nigerians to take advantage of this groundbreaking opportunity to access affordable mortgages, fulfill their homeownership dreams, and help close the housing gap. MBAN assured that its mortgage banks and brokerage companies are ready to facilitate the process and ensure the fund’s benefits reach those in greatest need.