ARM: Pilot Disbursement of N1trn MREIF to Begin in Abia, Lagos, Abuja, Kano, Rivers, Enugu 

Bennett Oghifo

ARM Investment Managers, a double-limited fund manager, and the fund manager of the N1 trillion Ministry of Finance Real Estate Investment Fund (MREIF), has said it would begin the pilot disbursement of the mortgages in Abia, Lagos, Abuja, Kano, Rivers, and Enugu states.

The Ministry of Finance Incorporated (MOFI) Real Estate investment Fund (MREIF) is a N1 trillion government-backed initiative designed to provide long-term, low-cost mortgage financing

for homebuyers and developers in Nigeria. The fund aims to address Nigeria’s housing deficit and create a more accessible and sustainable homeownership system.

Key Features of MREIF for Homebuyers

• Affordable Mortgage Rates: MREIF provides low-interest, long-term mortgages (up to 20 years).

• Government Support: Funded through a public-private partnership, with the Federal Government ensuring stability.

• Flexible Financing: Allows pension-backed mortgage options to ease homeownership.

• Nationwide Access: Open to eligible Nigerians across all geopolitical zones.

• Simple Application Process: Designed to be transparent, efficient, and accessible.

Who is Eligible?

• Salaried employees (private & public sector).

• Self-employed individuals meeting the income and creditworthiness criteria.

• Nigerians in the diaspora looking to invest in homeownership.

How to Apply?

1. Expression of interest (EoI): Fill out the online form via the MREIF portal.

2. Verification: Documentation and eligibility checks.

3. Mortgage Pre-Approval Financial institutions process mortgage applications.

4. Home Selection & Purchase: Choose from a list of vetted properties under the MREIF

scheme.

5. Final Approval & Disbursement: Loan finalized and homeownership secured.

Submit Your EOI Now: mreif.armcom.ng

According to ARM’s Investment Manager, Olubiyi Adekunbi, “The Minister of Finance and Coordination of Economic Development, Mr. Wale Edun has driven the development of what he calls the Ministry of Finance Real Estate Investment Fund (MREIF), which is a non-fee-for-Nigeria programme to establish a security-enriched income in Nigeria as a closed-ended fund that will mobilize capital from both the public and private sector in addressing the homeland economy. Now, I stated that the programme has to be registered, but the fund will be launched in series. One of the funds, which is the N150 billion, has been registered and will be subscribed to by the Ministry of Finance and Coordination.

“And that subscription is a concessionary fund, which is aimed at bringing down the interest rates that would normally be low. The second leg of the financing is going to be for commercial investors. And the intention is to raise up to N100 billion for commercial investors, specifically the pension fund.”

He said, “Currently, the pension fund industry sits on over N20 trillion. And this fund is one of the structures that has been created to mobilize funding from this sector to address infrastructure challenges, in this instance, specifically homeownership. How the fund would address the homeownership issue will be through the provision of long-term, low-interest rate mortgages.

“And at low rate and long term, we are talking about mortgages at 12% for up to 20 years. And this will be issued through eligible financial institutions who will be pre-qualified. And non-lending arrangements will be created through these eligible financial institutions lending the mortgage facilities to qualified homebuyers.

“And that’s tackling the demand side of the transaction. The other side is the supply side. The supply side relates to the provision of housing units to the scheme.

“And we are all aware of how challenging it has been for developers to raise funding for their projects. And what is currently obtainable is that developers try to sell their properties off-plan to raise funding for these projects. And what we’ve seen happen in the last couple of months is a situation whereby, due to rising inflation, these developers are unable to complete the projects at the prices they sold off-plan, resulting in undue losses and them not being able to deliver the properties that were committed to the homebuyers.

“What the MREIF will do is the provision of off-take guarantees to these developers, which will serve as a credit enhancement. This will enable them to approach construction lenders to raise construction finance for the development of residential homes. What this does is it takes the pressure of committing to homebuyers at a low rate, and it also enhances their credibility, because it’s a credit enhancement, and they are able to raise sufficient funding to complete their projects and sell at market prices.

“The third thing, the fund will be aiming to do, which it has already done, is the development of an application, a platform where the application of the mortgages will be done. That platform hosts a wide range of properties across the country. Currently, it has well over 2,000 housing units, and homebuyers will have the opportunity to conduct their eligibility criteria that individually confirm how much they are able to access based on their current income, their age, and how much equity contribution they have.

“With that information, they will be able to view the properties they qualify for on the platform, and then approach or apply for the offer letters for the property, and if they qualify, the developers will be able to issue offer letters for the properties for them on the platform. For those who want to apply for the 25% of their RSA balance as equity contribution, there will be an opportunity for them to also view their funds on the platform, which can be passed on to their PFAs for that application. And lastly, they will also be able to submit their mortgage applications to qualified eligible financial institutions who will process their mortgage applications and then issue the mortgages to them through the facilities that the fund would have provided on the platform.

“So what the platform aims to do is to create a seamless application process, a seamless and transparent process whereby the fund manager and all parties involved are able to monitor the transactions and ensure that there’s transparency in the origination of the mortgages, and that the people who are getting the mortgages are the right people getting it. One thing I didn’t mention is that the intention of the fund is to target first-time homeowners because that is where the challenge really is. “In terms of geographical focus, the intention is to start as a pilot in the urban areas where this housing deficit is more prominent.

The primary states we are looking at include Lagos, Abuja, Kano, Rivers, Enugu and Abia because these are the key commercial centers that we believe that the housing deficit is quite noticeable and there are commercial transactions that are sufficient enough to sustain the origination of mortgages because it’s important that repayment is prioritized so that investors can get their funding. Part of what has also been considered in the creation of this fund is to ensure that as much as this is a government-supported project, the intention is to have its private sector led. What that means is that as much as the government is supporting and providing the funding to push the fund forward, the activities of the fund will be completely driven by parties in the private sector.

He said, “There is a trustee in place who will hold the assets of the fund on behalf of all the investors that will be investing in the fund. There is also a custodian who will hold the assets.

“An investment committee has been constituted to oversee the investment decisions of the fund. The investment committee comprises of the different parties to the fund and independent parties. Two independent parties, the fund manager, the trustee, and the sponsor, the Ministry of Finance Inc., are part of the investment committee.

“This ensures that the governance of the fund is tight. It ensures transparency to ensure that it’s completely private sector-driven and the government’s influence on the activities of the fund is quite limited. I think, broadly speaking, that’s about it about the fund.

“The portal has been done to make the application process seamless. And part of the provisions we have in place is such that you can fill your application form on the portal. And then submit and it goes to your PFE for you to be able to draw 25% of your RSA balance.

“We’re more focused on a band where applicants can access. Before this fund was put into motion, a number of activities were done to determine what the average price rate would be and what the property prices would be.

“Averagely, we estimate that we would issue more between the range of 45 to 60 million. But, you know, the fund provides to an extent to allow applications up to a maximum of 200 million.

“So ultimately, those who are unemployed, own their own businesses, right? The requirement for them to be able to prove their income is their audited financials, their financial statements. But, you know, the verification will lie with the eligible financial institutions, the commercial banks and the primary market banks. That will, you know, qualify and do the assessment on these applicants to confirm that their income is stable enough to be able to accommodate the mortgage.”

The Executive Director of ARM, Mr. Wale Odutola reiterated the fact that the mortgage disbursement is a private sector-led initiative. “The only influence the government has is providing the safeguards that allows this to run in a manner that allows the fund to issue mortgages.

“Every other thing regarding the fund is private sector-led, which is why we’re simply going to the UNCA government official or the Minister of Finance here. Because what they have essentially done is see that we have to move to the private sector.”

However, he said the minister of finance insisted that the mortgages be spread across the country.

“So as many Nigerians are able to afford this, are able to participate in this. And there’s also that conversation about first-home buyers and how to track and ensure that it’s those people that are given priority. Thankfully, there’s this thing they call BVN, that allows financial transactions to be easily tracked and monitored.

“And those are some of the information that is required of the buyers of those homes, in order for us to make sure that we track those things and ensure that we give priority to the people that the sponsor that should be given priority in the execution of this initiative.”