The federal government yesterday signed a Memorandum of Understanding to commence a N250 billion real estate investment fund aimed at providing affordable, long-term mortgages to Nigerians.
The fund which is being championed by the Ministry of Finance Incorporated (MOFI) in partnership with the private sector will be in two phases with the pilot phase commencing with 150 billion.
Speaking at the event in Abuja, the Minister of Finance and Coordinating minister of the economy, Wale Edun said, “N250bn seed funding will meet real estate demand by providing low cost and affordable mortgage finance to encourage home ownership and growth delivery in housing units.
“Also, it will provide jobs and multiplier effects on growth and development of economy as housing has become a burning issue,” he said.
He added, “The funding is crucial especially at a time where commercial banks are lending at over 30 percent interest as the rates will be between 11 to 12 per cent.”
Also speaking, the Managing director of MoFI, Armstrong Takang, said participants include the Federal Housing Authority (FHA), Federal Mortgage Bank of Nigeria (FMBN), Family Homes Fund and the private sector.
