Economy
Real Estate Fund Will Solve Nigeria’s Housing Deficit—FSDH
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.
By Aduragbemi Omiyale
The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.
The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.
On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.
The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.
For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.
He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.
Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.
On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.
He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.
According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.
He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.
Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.
On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.
According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.
“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.
Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.
He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.
“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its recent positive run by 1.17 per cent on Tuesday, July 21, triggered by appreciation seen in four bellwethers.
Leading the pack was FrieslandCampina Wamco Nigeria Plc, which added N12.00 to its value to close at N153.15 per share compared with the previous day’s N141.15 per share. NASD Plc appreciated by N1.90 to N36.00 per unit from N34.10 per unit, Food Concepts Plc improved by 23 Kobo to N2.48 per share from N2.25 per share, and Afriland Properties Plc grew by a marginal 1 Kobo to N15.01 per unit from N15.00 per unit.
As a result, the market capitalisation of the bourse increased by N30.40 billion to N2.637 trillion from Monday’s N2.606 trillion, and the NASD Security Index (NSI) gained 50.70 points to finish at 4,393.97 points, in contrast to the 4,343.27 points it ended a day earlier.
The unlisted securities exchange recorded a price loser yesterday, and it was Geo-Fluids Plc, which shed 1 Kobo to settle at N2.30 per share versus N2.31 per share.
During the trading day, the volume of securities traded by market participants on Tuesday dropped 99.4 per cent to 322,147 units from the previous day’s 52.6 million units, the value of securities dipped by 89.8 per cent to N19.4 million from the preceding session’s N191.2 million, and the number of deals contracted by 3.6 per cent to 27 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.4 million units exchanged for N5.3 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
