The Ministry of Finance Incorporated Real Estate Investment Fund is moving toward launching a non-interest housing product aimed at broadening access to home finance and deepening financial inclusion across Nigeria.
Mujahid Usman, a senior financial analyst at the fund, revealed the plan during a panel discussion at the BusinessDay Abuja Real Estate Conference 2026, held under the banner "From Policy to Projects: Mobilising Capital for Sustainable Real Estate Development."
The non-interest fund awaits final clearance from the minister's office, Usman told the gathering. The product targets Nigerians seeking Shariah-compliant financing options and aims to unlock homeownership for more citizens.
"We are planning a non-interest fund that is almost ready. We are only waiting for final approval from the minister's office," he said.
Beyond rolling out fresh financing products, Nigeria must craft solid investment frameworks capable of drawing sustained domestic and international capital into real estate, Usman stressed. The nation's housing deficit stems not from a shortage of funds but from weak governance systems that fail to reassure investors, he explained.
"The money is there, but investors want to be sure their funds are protected. You have to create structures that people can trust before private sector players and international institutions will commit capital," Usman told reporters.
The fund has already pulled in more than N100 billion from banks, pension administrators and other lenders after years of constructing an investment vehicle with rigorous governance and regulatory safeguards. Since operations began, it has backed 2,020 mortgages totalling over N140 billion, he disclosed.
Average property values financed sit at roughly N68 million, though loans as modest as N5 million have been approved. Mortgages carry 9.75 per cent interest with repayment windows stretching to 20 years and a required 10 per cent equity stake.
Most applicants complete the approval process within three to six weeks when they submit all required documents. Salaried workers from government and private companies form the bulk of beneficiaries, though entrepreneurs with verifiable income streams also qualify.
Women represent over 30 per cent of those securing mortgages through the scheme. The fund partners with FHF Mortgage Bank and Family Homes Fund, while exploring fresh ties with the Federal Mortgage Bank of Nigeria and the Federal Ministry of Housing.
"We are not policymakers. Our role is to mobilise capital and inject it into the housing sector through credible financing structures that developers, lenders and investors can rely on," Usman added.
Oluwatosin Abraham, founder and chief executive of Thrift2Landlord, separately called for tighter cooperation among housing sector players and broader adoption of innovative financing models. Many Nigerians remain locked out of traditional mortgage products despite reforms underway, she argued, contending that savings-driven ownership approaches can help narrow the affordability divide.
