Accelerate sustainable housing finance delivery, Mortgage Banks tell MREIF | Prestige Real Estate News
Mortgage banks in Nigeria have said that the Ministry of Finance Integrated (MOFI) Real Estate Investment Fund (MREIF) must accelerate the delivery of sustainable housing finance in Nigeria.
The banks, under the aegis of the Mortgage Banking Association of Nigeria (MBAN), made this observation in its reaction to the Fund’s half-year 2026 performance, which it tagged “strong profits, stronger purpose.”
The Fund reported a profit before tax of ₦14.49 billion, a profit after tax of ₦14.24 billion, declared interim dividends, and increased its Net Asset Value (NAV) per unit to ₦106.71. These achievements, according to MBAN, reflect effective financial management and merit recognition.
However, it noted that MREIF serves a broader purpose than investment returns, pointing out that the Fund was created to expand access to affordable mortgage finance, deepen Nigeria’s housing finance market, mobilise long-term capital, and increase homeownership.
MREIF is aimed at addressing Nigeria’s housing deficit. It provides affordable, long-term mortgage financing for low- and middle-income Nigerians, facilitating access to homeownership. It is structured as a public-private partnership, leveraging both public and private capital to achieve its goals and improve living standards nationwide.
MBAN, in a recent statement, reasoned that the Fund’s long-term success should be measured not only by profitability, but also by its effectiveness in delivering affordable mortgages and supporting housing development.
“Although the Fund increased its mortgage portfolio by 86 percent over six months, a large share of its assets remains in cash and investment securities rather than mortgage loans. Most of the income during this period also came from interest on these holdings rather than from mortgage lending. This indicates significant potential to accelerate capital deployment and better fulfil the Fund’s developmental mandate,” it noted.
“However, increasing mortgage creation must not compromise prudent underwriting or effective risk management. Mortgage lending requires strong credit assessment, legal documentation, property verification, and reliable operational processes,” MBAN added.
It pointed out that the key challenge is to balance protecting investors’ capital with delivering mortgages quickly enough to address Nigeria’s significant housing deficit.
“Greater stakeholder engagement would further strengthen the Fund’s impact. Regular, structured collaboration with primary mortgage banks and other industry participants would improve transparency, enhance execution, and build stronger partnerships to achieve MREIF’s objectives,” MBAN stated.
The association assured that Nigeria’s mortgage banking industry is prepared to support this goal by originating high-quality mortgage assets, strengthening underwriting standards, leveraging technology, and partnering with MREIF to expand responsible mortgage lending nationwide.
It stressed that, ultimately, MREIF’s legacy should be measured not only by profits, dividends, or NAV growth, but by the number of mortgages created, homes financed, families empowered, and its measurable contribution to reducing Nigeria’s housing deficit.
– BusinessDay
