The Ministry of Finance Incorporated (MOFI) has entered a strategic partnership with Shelter Afrique Development Bank to address Nigeria’s long-standing housing deficit, launching a collaborative effort through the MOFI Real Estate Investment Fund (MREIF).
The agreement, formalised with a Memorandum of Understanding in Abuja, marks a major step towards tackling the country’s estimated 17 to 20 million housing shortfall. The partnership will also serve as a blueprint for similar initiatives across the African continent, such as expanding access to affordable housing through structured financing and risk mitigation.
Under this new alliance, MOFI and Shelter Afrique aim to confront demand-side and supply-side challenges in the housing market. MREIF, which has already gained traction with institutional investors, will lead efforts to unlock capital for large-scale housing developments while providing mortgage access to middle- and low-income earners.
The fund’s success has been evident in its first two fundraising rounds, with a ?150 billion Series 1 and ?100 billion Series 2 fully subscribed. These early milestones have positioned MREIF as a key vehicle in Nigeria’s affordable housing strategy. The fund has earned strong credit ratings, including an AAA rating from Agusto and an AA rating from GCR, further boosting investor confidence.
The collaborative model is designed to enable developers to secure financing more confidently. MREIF provides off-take guarantees, ensuring that completed homes have ready buyers. This, in turn, allows developers to access construction loans from Shelter Afrique and other financial institutions, knowing there is reduced financial risk.
Shelter Afrique, which became a fully operational development bank in late 2023, brings both financing capacity and a pan-African mandate to the partnership. With 44 African countries as shareholders, including Nigeria and Kenya as the largest stakeholders, the bank is uniquely positioned to drive regional progress in housing development.
With its expanding economy and ambitious infrastructure goals, Nigeria is seen as a key player in shaping housing policies that can be adopted continent-wide. The collaboration is intended to address the housing crisis and support wider economic development by boosting productivity, creating jobs, and improving living standards.
In addition to its funding framework, MREIF is deploying a technology-driven platform to make access to mortgages more transparent and accessible. Homebuyers can now browse verified properties and connect directly with lenders via a streamlined online portal, which aims to simplify the financing process and eliminate long-standing bottlenecks in housing finance.
ARM Investment Managers, which oversees MREIF, reported that more than 100 mortgages have already been issued, ranging from ?50 million to ?100 million. Seven financial institutions, including Infinity Mortgage Bank, Stanbic IBTC, Access Bank, and AG Mortgage Bank, have joined the initiative, with more banks expected to sign on in the coming months.
