Mortgage Banks urge MREIF to accelerate affordable housing finance

By Firdaus Jibril

The Mortgage Banking Association of Nigeria (MBAN) has called on the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to translate its strong financial performance into more accessible and affordable mortgages for Nigerians.

MBAN President, Ayo Olowookere, emphasized that the Fund’s success should be measured not only by its profits and investment returns, but also by the number of mortgages it generates and the homes it helps Nigerians finance.

MREIF recorded a profit before tax of ₦14.49 billion and a profit after tax of ₦14.24 billion in the first half of 2026, while its net asset value per unit rose to ₦106.71.

Although the Fund’s mortgage portfolio expanded by 86 percent during the six-month period, MBAN noted that significant capital remains unallocated in cash and investment securities.

According to the association, a substantial portion of the Fund’s income during the period was derived from interest on short-term financial investments rather than primary mortgage lending.

Olowookere reiterated that MREIF was established to provide long-term, low-cost mortgage financing, deepen the domestic housing finance market, mobilize long-term capital, and expand homeownership nationwide.

He urged the Fund to accelerate its capital deployment while maintaining strict credit assessments, legal documentation, property verification, and necessary risk safeguards.

MBAN further advocated for a stronger partnership between MREIF and primary mortgage banks to streamline mortgage delivery.

The association noted that closer operational engagement with mortgage operators would enhance transparency and execution while expanding access for prospective homeowners.

The appeal highlights Nigeria’s ongoing housing deficit and the pressing need for accessible long-term financing. MREIF currently provides mortgages of up to 20 years at a fixed interest rate of 9.75 percent per annum through participating financial institutions.

MBAN reaffirmed that Nigeria’s mortgage banking industry is prepared to support MREIF by originating quality assets, enforcing robust underwriting standards, leveraging digital technology, and expanding responsible lending.

The association further maintained that the Fund’s lasting impact must be measured by the number of families it transitions into homeownership alongside its financial metrics.