FG subscribes to N150bn real estate investment fund

The federal government through the Ministry of Finance Incorporated (MOFI), has fully subscribed to the Series 1 issuance of N150 billion for the Real Estate Investment Fund (MREIF),  designed to address the nation’s housing deficit and stimulate economic activity in the real estate and construction sectors.

In a statement over the weekend, MOFI noted that the full subscription to the Series 1 Fund underscores the government’s pivotal role as the sponsor while empowering the private sector to lead the implementation and management of the initiative.

“By seeding the fund with N150 billion, the federal government has laid a strong foundation for MREIF’s success, ensuring its sustainability and long-term impact under the stewardship of private sector expertise.

“ARM Investment Managers (ARM), the appointed fund manager for MREIF, will oversee the deployment of funds to provide long-term, low-cost mortgage financing for homeowners and offtake guarantees for developers.

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“MREIF aims to transform Nigeria’s housing landscape by facilitating access to low-cost, long-term mortgages for aspiring homeowners,” it said.

With the successful subscription of the entire N150 billion in Series 1 issuance and the allotment of 100% of the units to MOFI, it added that the Series 2 issuance of N100 billion will be open for private and commercial investors, subject to the Securities and Exchange Commission’s approval.