JUST IN: FEC Approves N250 Billion To Address Housing Deficit

Nigeria Federal Executive Council (FEC) just approved a whooping sum of 250 billion naira for real estate investment fund which is claimed to be aimed at solving the shortage of houses in Nigeria and additionally give an affordable and long-term mortgage financing for Nigerian citizens.

This information was disclosed to the State House correspondents on Thursday, 14th of November, 2024 by the Finance Minister Wale Edun after the FEC meeting which was led by the Country’s President, Bola Tinubu at the President Villa.

According to the Finance Minister, this act will give Nigerians the opportunity to easily get mortgages at low interest rates compared to the current rates. He also noted that the mortgage tenure is reasonable; 20 years or more depending on your choice and capacity,

The approval for this initiative was granted in the meeting yesterday with the term/title being the “Ministry of Finance Incorporated (MOFI) real estate investment fund” which will serve as the foundation of reviving long-term mortgage financing in the country, Nigeria.

More information on the MOFI Real Estate Investment Fund showed that it will provide affordable and long-term mortgages to citizens who wish to acquire homes for their families and will also address the shortage of housing. It will also create job opportunities, add to the economic growth and create way for investors to participate in the construction industry.

In his words,

“Approval has been granted for the Ministry of Finance Incorporated (MOFI) real estate investment fund. This fund will serve as the basis for the revival of long-term mortgage financing in the Nigerian economy.

The MOFI Real Estate Investment Fund will initially amount to N250 billion and will provide low-cost, long-term mortgages to Nigerians who wish to acquire homes. It will help address part of the 22 million-unit housing deficit.

Of course, it will create jobs, stimulate economic growth, and pave the way for other private sector investors to participate in the housing construction industry, with significant benefits for the broader economy.

The concept is long-term. Investors will have the opportunity to earn market rates of interest and returns on investment, blended with seed funding of N150 billion.”