Experts express mixed feelings as FG mulls real estate fund

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8 months ago

REAL estate experts and developers have not stopped to react as the Federal Ministry of Finance unveiled the Ministry of Finance Incorporated Real Estate Investment Fund as part of the one million homes under the Presidential Initiative.

The new initiative was disclosed by the Minister of Finance, Wale Edun, during a high-level meeting at the Ministry of Finance headquarters in Abuja

Edun highlighted the potential of the new fund to provide “cost-effective mortgage options for a large segment of pension account holders.”

He emphasised that the new fund was designed to enhance affordable homeownership by offering low-cost mortgage options, with a particular focus on pension account holders.

He said the initiative aims to broaden access to housing for more Nigerians, supporting the government’s goal of expanding homeownership across the country.

However, no sooner than the minister made this disclosure than the professionals in the housing sector expressed mixed feelings.

They want to know the difference the new initiative would make that will be different from what the existing initiatives/ institutions such as Family Homes Fund (FHFL), Federal Mortgage Bank of Nigeria (FMBN), Nigeria Mortgage Refinance Company (NMRC) and others have been doing.

Lead promoter of African International Housing Show, Festus Adebayo, said: ”So many agencies doing almost same things is not the solution we need.”

Another expert, who claimed anonymous, said: “How do we make this new fund work with National Housing Fund, Family Homes Funds, Fed Ministry of Housing on one side, Fed Ministry of Finance, housing programme on the other side.’

However, Edun underscored the significance of the meeting as a crucial opportunity for stakeholders to engage in open discussions.

He emphasised that such dialogues are essential for ensuring the success of the initiative and achieving its objectives.

The CEO of the Ministry of Finance Incorporated, Dr. Armstrong Takang, explained that the fund would operate as a market-driven initiative while adhering to regulatory standards.

This approach, he said intends to ensure the fund’s sustainability and positively impact the housing and real estate sector.

The meeting convened key players from the pension and financial sectors, including ARM Pensions, FCMB Pensions, Trustfund, and NUPEMCO.

The discussions centered on shaping the future of the fund and exploring ways to stimulate economic growth through a more robust real estate market.

Notable attendees included the Accountant General of the Federation, Dr. Oluwatoyin Maiden; Wale Odutola of ARM Pensions; CEO of STC Trustees, FunmiEkundayo; MREIF Co-Coordinator, Sani Yakubu; and representatives from PAL Pensions, Vetiva Advisory, and Access Pensions.