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

NASD Exchange Rises 1.22% on Sustained Bargain-Hunting

Published

18 hours ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Strong appetite for unlisted stocks further raised the NASD Over-the-Counter (OTC) Securities Exchange by 1.22 per cent on Friday, February 27.

Data revealed that the NASD Unlisted Security Index (NSI) was up by 49.41 points to 4,083.87 points from 4,034.46 points, and lifted the market capitalisation by N19.56 billion to N2.433 trillion from N2.413 trillion.

The volume of securities bought and sold by investors increased by 243.0 per cent to 4.5 million units from 1.3 million units, and the number of deals grew by 15.8 per cent to 44 deals from 38 deals, while the value of securities went down by 19.7 per cent to N82.5 million from N102.8 million.

Central Securities Clearing System (CSCS) Plc ended the session as the most active stock by value on a year-to-date basis with 35.0 million units valued at N2.1 billion, followed by Okitipupa Plc with 6.3 million units worth N1.1 billion, and Geo-Fluids Plc with 122.8 million units transacted for N480.4 million.

Resourcery Plc ended the day as the most traded stock by volume on a year-to-date basis with 1.05 billion units sold for N408.7 million, followed by Geo-Fluids Plc with 122.8 million units valued at N480.4 million, and CSCS Plc with 35.0 million units traded for N2.1 billion.

There were six price gainers yesterday led by FrieslandCampina Wamco Nigeria Plc, which added N9.02 to close at N111.46 per unui compared with the previous day’s N102.44 per unit, Nipco Plc appreciated by N6.00 to N284.00 per share from N278.00 per share, CSCS Plc recouped N1.87 to sell at N70.12 per unit versus Thursday’s value of N68.25 per unit, Geo-Fluids Plc improved by 17 Kobo to close at N3.18 per share versus N3.01 per share, Industrial and General Insurance (IGI) Plc advanced by 5 Kobo to sell at N50 Kobo per unit versus the preceding day’s 45 Kobo per unit, and Acorn Petroleum Plc chalked up 2 Kobo to settle at N1.34 per share, in contrast to the previous day’s N1.32 per share.

Economy

FX Liquidity Crunch Sinks Naira to N1,363/$1 at NAFEX, N1,370/$1 at Black Market

Published

18 hours ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

The Naira performed poorly against the United States Dollar in the different segments of the foreign exchange (FX) market on February 27, closing the week without a gain.

In the black market, the domestic currency weakened against the Dollar yesterday by N5 to close at N1,370/$1 compared with Thursday’s closing price of N1,365/$1, and at the GT Bank forex desk, it lost N2 to sell N1,369/$1 versus the N1,367/$1 it was sold a day earlier.

Yesterday, the Nigerian Naira lost N3.75 or 0.26 per cent against the greenback at the Nigerian Autonomous Foreign Exchange Market (NAFEX) to trade at N1,363.39/$1 compared with the previous day’s N1,359.82/$1.

Also, the Naira depreciated against the Euro at the official market during the session by N2.33 to quote at N1,609.22/€1 versus N1,606.89/€1, and appreciated against the Pound Sterling by N6.74 to settle at N1,836.49/£1 compared with the preceding session’s N1,843.23/£1.

The Naira’s latest depreciation occurred as FX demand continued to outpace available supply, intensifying pressure in the market.

In response to the negative momentum, the Central Bank of Nigeria (CBN) intervened by selling Dollars to banks and other authorised dealers in an effort to stabilise the local currency. The move came barely a week after the apex bank had purchased about $190 million from the foreign exchange market to temper the Naira’s rally.

Specifically, the CBN injected $200 million into the official market between Tuesday and Wednesday through an intervention call. However, the liquidity support proved insufficient to reverse the currency’s downward trend.

Meanwhile, the cryptocurrency market declined on Friday, with Solana (SOL) down by 10.4 per cent to $78.60, as Dogecoin (DOGE) decreased by 9.5 per cent to $0.0982.

Further, Cardano (ADA) slumped 8.9 per cent to $0.2647, Ethereum (ETH) slipped by 8.6 per cent to $1,859.10, Ripple (XRP) shrank by 8.2 per cent to $1.30, Litecoin (LTC) lost 1.4 per cent to close at $52.39, Bitcoin (BTC) slid 5.9 per cent to $63,686.39, and Binance Coin (BNB) went down by 4.9 per cent to $596.64, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

Economy

Oil Prices Climb on Geopolitical Anxiety

Published

19 hours ago

28/02/2026

Adedapo Adesanya

By Adedapo Adesanya

Oil prices rose about 2 per cent on Friday, with traders bracing for supply disruptions as nuclear talks between the United States and Iran were without an agreement.

Brent crude futures settled at $72.48 a barrel after chalking up $1.73 or 2.45 per cent, while US West Texas Intermediate crude futures finished at $67.02 a barrel, up $1.81 or 2.78 per cent.

The two sides agreed to extend indirect negotiations into next week, but traders grew sceptical that an agreement between US President Donald Trump’s administration and Iran was possible.

The US and Iran held indirect talks in Geneva on Thursday after Mr Trump ordered a military buildup in the region.

Oil prices gained during the talks, on media reports indicating that discussions had stalled over U.S. insistence on zero enrichment of uranium by Iran. However, prices eased after the mediator from Oman said the two sides had made progress.

They plan to resume negotiations with technical-level discussions scheduled next week in Vienna, Omani Foreign Minister Sayyid Badr Albusaidi said on X.

Market analysts noted that geopolitical risk premiums of $8 to $10 a barrel have been built into oil prices on fears that a conflict will disrupt Middle East supply through the Strait of Hormuz, where about 20 per cent of global oil supply passes.

To cushion the impact from a possible strike, one of the world’s largest oil producers, the United Arab Emirates (UAE), is set to export more of its flagship Murban crude in April, while Saudi Arabia said it would also increase oil production.

Additionally, Saudi Arabia may raise its April crude price to Asia for the first time in five months due to higher demand from India to replace Russian supplies, potentially raising it by about $1 a barrel.

Meanwhile, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) is likely to consider raising oil output by 137,000 barrels per day for April at its March 1 meeting, after suspending production increases in the first quarter.

The resumption of output increases after a three-month pause would allow Saudi Arabia and the UAE to regain market share at a time when other OPEC+ members, such as Russia and Iran, contend with Western sanctions while Kazakhstan recovers from a series of oil production setbacks.

Eight OPEC+ producers – Saudi Arabia, Russia, the United Arab Emirates, Kazakhstan, Kuwait, Iraq, Algeria and Oman will meet at the meeting on Sunday.