Economy

Real Estate Fund Will Solve Nigeria’s Housing Deficit—FSDH

Published

7 years ago

26/02/2019

By Modupe Gbadeyanka

A Lagos-based investment firm, FSDH Research, has identified Real Estate Fund (REF) has the solution to the shortage of housing in Nigeria.

In its weekly report, FSDH Research said government can use REF as an investment vehicle to address the housing deficit and encourage economic activity in the real estate sector.

Housing is a basic need of all human beings. Other basic human needs include food and clothing. Irrespective of their social or financial status, everyone deserves and needs access to quality and affordable housing.

Sadly, in Nigeria, there is a significant shortage of affordable housing. The housing gap is estimated to stand between 17 and 20 million units.

This means that Nigeria needs to build between 17 and 20 million housing units to ensure that Nigerians have this basic human need.

In monetary terms, Nigeria may require between N170 trillon to N200 trillion to bridge the housing gap if each unit costs N10 million.

Given the rising population in the country, the housing shortage keeps increasing.

Meanwhile, developments in the real estate sector of the Nigerian economy, which is where activities that will close the housing shortage will take place, have not been impressive.

Economic activity in the real estate sector has been consistently contracting since the first quarter of 2016.

FSDH Research is of the opinion that with the REF, investors (both retail and high net worth) can create wealth in real estate through regular investment in the fund without investing directly in the brick and mortar.

It said REF is an investment vehicle that pools resource together to invest in real estate, therefore allowing individual investors to partake in the benefits of the underlying properties.

In Nigeria, REFs are traded on the Nigerian Stock Exchange (NSE), just like stocks/shares. They can therefore be purchased through stockbrokers, just like other stocks/shares. Every REF must have a fund manager that manages the fund to ensure the best return to shareholders.

REFs are real estate working for the investors. The holder of a REF will earn a share of the income from the real estate investment through dividends without actually having to buy, manage or finance any housing projects.

REFs are required to distribute at least 90 percent of their taxable income as dividend. As a result, it provides constant income for shareholders. There is no minimum amount to invest in a REF so it is suitable for all investors.

FSDH Research noted that REFs have not gained much popularity in Nigeria in terms of the numbers available and their size relative to the size of the Nigerian economy.

There are currently only three REFs listed on the NSE; Skye Shelter Fund, Union Homes Real Estate Investment Trust (REIT) and UPDC Real Estate Investment Trust.

According to the Securities and Exchange Commission (SEC), the total value of the assets of all three funds stood at N43.74 billion as at January 18, 2019, representing about 0.03 percent of Nigeria’s total Gross Domestic Product (GDP).

FSDH Research notes that these assets have recorded weak growth over the last five years, perhaps due to the slow activity in the real estate sector in general. The inadequate information on how REFs work and how investors can take advantage of the investment opportunities in them may also explain why REFs are not growing as they should.

FSDH Research believes REFs can be used as one of the measures to boost activity in the Real Estate sector. As patronage for REFs in Nigeria increases, more funds would be available to buy and develop more real estate properties.

Consequently, the real estate sector would begin to experience increased activity. The REFs can also concentrate on affordable housing units which will help to bridge the housing deficits in the country. Therefore, it is a win-win situation for all the stakeholders. FSDH Research notes that the real estate sector can also stimulate economic activity in other sectors of the economy such as cement manufacturing, plastic and iron fabrication. This would help to create job opportunities for skilled and unskilled labour, within and outside the sector.

FSDH Research also notes that the real estate sector is labour-intensive, therefore with adequate investment and incentives in the sector, the high unemployment narratives in Nigeria can change.

Economy

CSCS, Geo-Fluids, FrieslandCampina Lift NASD OTC Bourse by 0.62%

Published

10 hours ago

13/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Three bellwether stocks lifted the NASD Over-the-Counter (OTC) Securities Exchange by 0.62 per cent on Friday, December 12 with the NASD Unlisted Security Index (NSI) jumping by 22.20 points to 3,600.43 points from 3,578.23 points.

In the same vein, the market capitalisation of the trading platform increased by N13.28 billion to close at N2.154 trillion from the previous day’s N2.140 trillion.

During the session, Central Securities Clearing System (CSCS) Plc went up by N2.53 to close at N39.71 per share compared with the previous day’s N37.18 per share, Geo-Fluids Plc added 35 Kobo to its price to finish at N5.00 per unit versus Thursday’s closing price of N4.65 per unit, and FrieslandCampina Wamco Nigeria Plc appreciated by 23 Kobo appreciation to sell at N60.23 per share versus N60.00 per share.

It was observed that yesterday, the price of Golden Capital Plc went down by N1.05 to N9.45 per unit from N10.50 per unit, and UBN Propertiy Plc declined by 21 Kobo to N2.01 per share from the N2.22 per share it was traded a day earlier.

There was a significant improvement in the level of activity for the day, as the volume of transactions increased by 6.2 per cent to 37.4 million units from the previous day’s 35.2 million units, the value of trades went up by 265.1 per cent to N4.9 billion from N1.4 billion, and the number of deals soared by 13.80 per cent to 33 deals from 29 deals.

Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the last trading day of this week as the most active stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, the second spot was taken by Okitipupa Plc with 178.9 million units traded for N9.5 billion, and third space was occupied by a new comer in MRS Oil Plc with 36.1 million units worth N4.9 billion.

InfraCredit Plc also finished the session as the most active stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units valued at N420.3 million, and Impresit Bakolori Plc with 537.0 million units sold for N524.9 million.

Economy

Guinness Nigeria, Others Buoy NGX Index 1.00% Growth

Published

10 hours ago

13/12/2025

Dipo Olowookere

By Dipo Olowookere

The bullish run on the Nigerian Exchange (NGX) Limited continued on Friday with a further 1.00 per cent growth buoyed by gains recorded by Guinness Nigeria, Champion Breweries, and others.

Data showed that the consumer goods space expanded by 1.53 per cent during the last trading session of the week, as the insurance counter grew by 0.51 per cent, and the industrial goods sector marginally gained 0.01 per cent.

However, the banking index depreciated by 0.54 per cent due to a pocket of profit-taking, and the energy industry shrank by 0.09 per cent, while the commodity sector closed flat.

Guinness Nigeria gained 10.00 per cent to trade at N217.80, Morison Industries rose by 9.84 per cent to N4.69, Champion Breweries jumped by 9.69 per cent to N14.15, Austin Laz grew by 9.66 per cent to N2.27, and C&I Leasing appreciated by 9.62 per cent to N5.70.

Conversely, eTranzact lost 10.00 per cent to finish at N12.60, Chellarams slumped by 9.00 per cent to N13.20, Eunisell depleted by 9.89 per cent to N75.15, Africa Prudential moderated by 9.77 per cent to N12.00, and DAAR Communications decreased by 9.18 per cent to 89 Kobo.

The busiest stock on Friday was Access Holdings with 107.6 million units sold for N2.2 billion, Consolidated Hallmark traded 59.9 million units worth N245.8 million, Zenith Bank transacted 48.2 million units valued at N3.1 billion, Transcorp Power transacted 42.8 million units for N13.1 billion, and Champion Breweries exchanged 36.4 million units valued at N510.2 million.

At the close of business, a total of 602.8 million units worth N30.7 billion exchanged hands in 20,550 deals yesterday, in contrast to the 529.7 million units valued at N12.3 billion traded in 18,159 deals on Thursday, representing a surge in the trading volume, value, and number of deals by 13.80 per cent, 149.59 per cent, and 13.17 per cent apiece.

Business Post reports that the All-Share Index (ASI) soared during the session by 1,485.89 points to 149,436.48 points from 147,950.59 points and the market capitalisation moved up by N945 billion to N95.264 trillion from N94.319 trillion.

Economy

Naira Chalks up 0.11% on USD at NAFEM as CBN Defends Market

Published

10 hours ago

13/12/2025

Adedapo Adesanya

By Adedapo Adesanya

An intervention of the Central Bank of Nigeria (CBN) in the foreign exchange (FX) market eased the pressure on the Naira on Friday.

The apex bank sold forex to banks and other authorised dealers in the official window to defend the domestic currency, helping to calm the FX demand pressure, with the Nigerian currency appreciating against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) by 0.11 per cent or N1.57 to sell at N1,454.50/$1 compared with Thursday’s closing price of N1,456.07/$1.

Also, the domestic currency improved its value against the Pound Sterling in the official market yesterday by N3.95 to close at N1,946.15/£1 versus the previous day’s N1,950.11/£1 but lost 10 Kobo on the Euro to quote at N1,706.46/€1 compared with the N1,706.36/€1 it was exchanged a day earlier.

At the black market segment, the Nigerian Naira maintained stability against the Dollar during the session at N1,470/$1 and also traded flat at N1,463/$1 at the GTBank forex counter.

Despite the sigh of relief, demand pressures outweighed the robust supply from the CBN and inflow from offshore players looking to participate at the OMO bills auction.

Gross FX reserves increased for the twenty fifth consecutive week, growing by a strong $396.84 million week-on-week to $45.44 billion.

As for the cryptocurrency market, it was down on Friday as pressure remained after Federal Reserve chair Jerome Powell’s speech on Wednesday, which hinted at a possible rate cut pause in January. As a result, markets now expect only two rate cuts in 2026 instead of three.

However, Chicago Federal Reserve President Austan Goolsbee, who was against a December rate cut, said he expects more in 2026 than the current median projection.

Ethereum (ETH) slumped by 5.1 per cent to $3,090.61, Solana (SOL) declined by 4.5 per cent to $132.79, Cardano (ADA) depreciated by 3.8 per cent to $0.4103, and Dogecoin (DOGE) dropped 2.5 per cent to trade at $0.1373.

In addition, Bitcoin (BTC) lost 2.4 per cent to sell at $90,342.74, Litecoin (LTC) tumbled by 1.9 per cent to $81.86, Binance Coin (BNB) fell by 0.6 per cent to $886.93, and Ripple (XRP) slipped by 0.5 per cent to $2.02, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.