The Federal Government of Nigeria has signed a Memorandum of Understanding with Shelter Afrique Development Bank to grow the housing sector by expanding the Ministry of Finance Incorporated Real Estate Investment Fund, known as MREIF. The agreement was signed in Abuja and is aimed at reducing the country’s huge housing deficit. It will help raise funds locally and open new doors for property developers and Nigerians who want to own homes.
Speaking during the signing, the Chief Executive Officer of the Ministry of Finance Incorporated, Dr Armstrong Takang, said the partnership marks a major achievement in efforts to build many affordable houses using Nigerian-led strategies. Dr Takang explained that the MREIF project is fully backed by President Bola Ahmed Tinubu and has set a target to raise N1 trillion through different phases.
He said the first phase of the fund, called Series 1, has already raised N150 billion, while Series 2 brought in another N100 billion. According to him, the funds are not just sitting in accounts but are already being disbursed to drive housing development. “This is not just in words—this is action,” he said. “The mortgages have already started, and we will be going back to the market. Even N1tn is a drop in the ocean when you think about the housing deficit, but it is a good and symbolic start.”
Dr Takang added that the mortgages being issued are in naira, which removes foreign exchange risks. He said the loans also have long repayment periods of up to 25 years and come with low interest rates, making them more affordable for average Nigerians. He noted that MREIF is structured to support both sides of the housing market. It offers direct loans to those who want to buy houses and also helps developers by giving them off-take guarantees.
He explained that these off-take guarantees show that there are buyers already interested in the houses, which helps developers raise loans from banks to build the houses. He said, “That’s where Shelter Afrique comes in. They don’t issue mortgages—they provide the construction capital once off-take guarantees are in place.”
Shelter Afrique’s Managing Director, Mr Thierno-Habib Hann, also spoke at the event. He described the partnership as both strategic and timely. According to him, Shelter Afrique sees Nigeria as a key player in its housing plans for Africa. He noted that Nigeria is one of the two largest shareholders in the development bank and has the scale and energy needed to drive new housing ideas that can benefit other countries.
Mr Hann said, “This partnership is not just symbolic. It’s a strategic alignment between institutions with a shared vision for Africa’s housing future.” He added that Shelter Afrique, which operates in 44 African countries, brings strong experience in turning housing plans into bankable projects that attract investment.
Both Dr Takang and Mr Hann said they are confident that the success of the MREIF model in Nigeria can be copied by other African nations that also need to tackle housing shortages. They agreed that the partnership will continue to attract investors and help deliver affordable homes across Nigeria.
The Federal Government hopes that with Shelter Afrique’s support, the MREIF programme will keep growing, create jobs in construction, and help many Nigerians finally become homeowners. The long-term goal is to use Nigerian solutions and partnerships to provide decent and affordable housing in every part of the country.
