By Adaobi Rhema Oguejiofor
It is common knowledge that housing is the second most basic and essential human need in the world today next to food. The impact of housing on the health and welfare of man is profound, which is why it plays an important role in a person’s standard of living, place and status in society.
As a result of the estimated population of about 200 million people in Nigeria, urgent attention and focus have been placed on the country’s housing sector to meet the housing needs of citizens. Available records have shown that the key issue affecting housing delivery in Nigeria is due to inadequate, inappropriate statistics and data presentation by the managers of housing in the nation; the level of shortage is not adequately presented.
Despite this, there are still attempts to estimate the magnitude of the housing shortage in Nigeria. In 1999, the national housing policy specified in detail that to achieve the goal of providing 8 million housing units by the year 2000, 700,000 housing units would have to be built each year. At the time, it was concluded that this number was necessary to compensate for the housing shortage in the country.
For years, Nigeria’s housing sector has faced persistent challenges and resisted past efforts for reform. However, as a result of the present administration’s intentional efforts, the sector has made impressive strides, achieving progress.
Recently, the Federal Government launched the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) aimed at addressing Nigeria’s housing deficit by partnering with the pension and financial sectors to provide affordable housing.
This was revealed in a statement by the Federal Ministry of Finance, noting that the MREIF will revolutionize the housing sector by giving more Nigerians access to affordable homes. The initiative aligns with the government’s broader vision of making homeownership more accessible, especially for pension account holders.
The MREIF initiative, which was launched at a high-level meeting, is a key part of the One Million Homes Presidential Initiative designed to offer low-cost mortgage financing options to eligible Nigerians. At the meeting, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized the transformative potential of the fund.
According to him, MREIF would provide cost-effective mortgage solutions, particularly benefiting pension account holders, and will serve as a critical component in addressing the country’s housing challenges.
In his words, “The launch of this fund represents a major stride in delivering affordable homes to Nigerians. With the support of the pension and financial sectors, we are confident that this initiative will transform the housing landscape and create significant opportunities for homeowners.”
MREIF will operate under a market-driven framework to ensure compliance with regulatory standards while also promoting broad accessibility to homeownership.
The CEO of the Ministry of Finance Incorporated, Dr. Armstrong Takang, highlighted the importance of transparency and market efficiency in managing the fund.
He stated that MREIF is designed not only to boost housing access but also to strengthen the mortgage market, creating a viable and sustainable pathway for homeownership across Nigeria. To ensure success, the Federal Government engaged leaders from the pension and financial sectors.
These prominent figures in the collaboration include the Accountant General of the Federation, Dr. Oluwatoyin Maiden, the Chief Executive Officer (CEO) of ARM Pensions, Wale Odutol, CEO of STC Trustees, Funmi Ekundayo, and the co-coordinator of the MREIF, Sani Yakubu.
Additional key stakeholders involved are Temitayo Ajayi of Vetiva Advisory, Managing Director of PAL Pensions, Saadu Jijji, Deputy Chief Investment Officer at FCMB Pensions Limited, Tony Odutola, and the Executive Director of Access Pensions, Nuhu Modibbo, among others.
These experts bring extensive experience in pension fund management, real estate financing, and investment advisory, which will be instrumental in shaping the structure and deployment of the MREIF. Their contributions will be critical in ensuring that the fund achieves its goal of making affordable homeownership a reality for many Nigerians.
By this innovative approach, the government hopes to remove the barriers that have long prevented many Nigerians from owning their homes, and for pension account holders, the MREIF offers a unique opportunity to secure mortgage loans at reduced interest rates, providing a sustainable solution to the country’s housing crisis.