Economy
Recession: Mall Developers, Tenants Consider Rent Renegotiation
By Maureen Ihua-Maduenyi
With the current economic crisis creating challenges for all sectors of the economy, the country’s rapidly growing retail sector is struggling.
Apart from a few malls, most retail facilities in the country were funded by private equity firms that got their funding mainly from foreign sources; and by virtue of this, they are currently facing a lot of challenges as many of their tenants who sell mostly foreign products, are finding it difficult to stock up or fit out in new malls due to forex scarcity.
Findings by our correspondent indicate that many tenants are no longer paying rents in some of the big and expensive malls, because the rents are high due to the naira to dollar exchange rate, and most of the retailers don’t have enough liquidity to stock up due to the forex restrictions, high costs and problems associated with importation.
According to a source, who did not want to be quoted, some tenants owe as much as 15 months’ rent and developers cannot ask them to vacate the malls as empty shops in a mall is an indication of a failed project.
Our correspondent gathered that the landlords were becoming more creative to keep their tenants in business and the malls functioning.
It was gathered that one of such creative ways was to ask tenants who owed rents to pay the service charges.
“If the rent is paid and the service charge is not paid, it becomes the landlord’s headache to settle the service charge. So, he will rather the tenants pay their service charges to keep the malls running,” a source told our correspondent.
An estate surveyor and valuer, Mr Rogba Orimolade, said majority of the functioning retail facilities were struggling to survive.
“A lot of these retailers are those who rely on not just forex, but goods that they bring in from overseas, and they are struggling. The market itself is in recession, so a lot of the malls are caught in the middle. Some of the tenants are leaving; some are trying to adjust and see what kind of local products they can stock,” he said.
According to Mr Orimolade, investors are also trying to make tough decisions such as pegging rents in such a way that tenants will not be discouraged, with some landlords already giving discounts, while some are reducing their rates against the Central Bank of Nigeria’s naira to dollar rate.
He explained, “There are so many ways that a lot of promoters of these malls are becoming creative with the way they ask tenants to pay their rents and it is only realistic they do that. From the way things are going, most of the malls that are going to be coming into the market now will source their funding locally and ensure that the rate they are charging is strictly in naira.
“Foreign investors also have to adapt, that is the reality. Sourcing for offshore funds is no longer realistic.”
He said that apart from facilities such as the Ikeja Mall and The Palms, both in Lagos, that were doing well in spite of the economic realities, because of their locations where retailers were eager to get shops, many others were groaning as a result of the economic crisis.
Mr Orimolade said, “Apart from some whose promoters who were able to read the market on time and focus more on Nigerian companies to take up spaces, many malls in Lagos and other parts of the country, especially those built with offshore funds, are struggling and have 30 to 40 per cent of their shops vacant.
“Their projections were that a lot of those foreign companies would take up space but those companies backed out, some even relocated from Nigeria.”
Rents in malls across the country go for as high as between $100 and $120 per square metre monthly; and are mostly paid quarterly, with many of the retailers taking spaces from 60 square metres upwards.
The Consultant, Retail Leasing, Broll Nigeria, Mrs Lola Toye, said business had slowed down in the retail market because of the economy and the cost of products.
She, however, said that even before the recession, some retailers had been struggling due to the kind of products they were selling.
Mrs Toye said, “Malls are not really empty, they may not be full either, but tenants not keeping up happened even when the economy was booming. There is low spending power, so people are cautious of what they spend money on. They now focus on essential things rather than non-essentials.
“Those of us that are letting offices are also experiencing this. There is an impact, but developers are still building despite this. Things are not shutting down, people believe that the economy will turn around shortly and when it does, they will be ready to take in new tenants.
“Landlords are making concessions; those who borrowed in dollars and need to pay back their loans need to do that in dollars. Landlords need to recoup their investments, while tenants also need to make money. So, both tenants and landlords are getting more creative.”
According to Mrs Toye, there is still a huge demand for shops but it is taking longer to fill the malls than it was in the past and landlords are looking at charging rents annually instead of quarterly.
“With this, they don’t have to worry about any kind of fluctuation in the currency; within 12 months, things can turn around. Some malls that are not based on dollar investment can charge in naira. We are looking at what suits the tenant and what suits the landlord. We are optimistic and very cautious too,” she added.
Malls developer and the Chief Executive Officer of Top Services Limited, Mr Tokunbo Omisore, said concession had always been considered between landlords and tenants.
“I cannot, for instance, charge rent at the rate of the parallel market and it has been on for a long time,” he said.
The Founding Partner, Bode Adediji Partnership, an estate surveying and valuation firm, Mr Bode Adediji, said the biggest problem in the retail sector remained the payment of rents in dollars.
He added, “Charging tenants on dollar basis is okay in the interim, but it is not sustainable; there will always be an impact of the rent on the income to be generated by tenants. All over the world, rental charges are based on an understanding between landlords and tenants; but in Nigeria, it is totally absent. Landlords think they matter more, the mind-set is either you can afford it or not.
“The business model for a shopping complex should never be based on the short or medium-term; it should be on a long-term basis always.”
According to Mr Adediji, the way out of the current problem is for rental and lease agreements between shopping mall tenants and landlords to be based on realistic and sustainable parameters.
By Adedapo Adesanya
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, has linked the surge in the nation’s stock market to ongoing fiscal reforms aimed at strengthening investor confidence and stabilising the economy.
Speaking at the 3rd PUU Capital Market Colloquium on Monday in Abuja, Mr Oyedele described the ongoing reforms as one of the most consequential fiscal resets in Nigeria’s modern history, noting that they are designed to build trust in the economy, stimulate inclusive growth, and foster a more investment-friendly environment.
According to him, the impact of these reforms is already visible on the trading floor of the Nigerian Exchange (NGX) Limited. As of mid-February 2026, the All-Share Index recorded a 25.3 per cent return within the first seven weeks of the year, while market capitalisation crossed the psychological N100 trillion mark in January before reaching an all-time high of over N125 trillion by February 20.
On January 13, 2026, the index reached an all-time high of 165,837.33 points, extending a rally that had already delivered a 51.2 per cent return in 2025, the strongest performance in nearly two decades.
Mr Oyedele linked the strong performance to structural reforms that had improved transparency, enhanced foreign exchange liquidity, and provided greater predictability in tax administration.
“The results of these policies are already evident on the trading floor. As of mid-February 2026, the Nigerian Stock Exchange (NGX) showed exceptional performance with the All-Share Index (ASI) recording a robust 25.3 per cent return in just the first seven weeks of the year, with market capitalisation crossing the psychological N100 trillion mark in January, and reaching an all-time high of over N125 trillion by 20 February 2026.
“Confidence continues to grow from both foreign and domestic investors, driven by the structural reforms and strong performance in key sectors like energy, industrial and financial services,” he said.
He explained that historically, Nigeria’s tax system had been fragmented and costly to comply with, discouraging investment and limiting efficient capital allocation.
“To address this, the new tax framework provides a unified, transparent and predictable environment where businesses can plan effectively, and investors can price risk appropriately,” he said.
He outlined several provisions in the new tax laws aimed at deepening the capital market. These include a full Capital Gains Tax exemption on proceeds reinvested in Nigerian shares within the same year, higher tax-exempt thresholds for small and retail investors, and a legal framework to reduce corporate income tax from 30 per cent to 25 per cent.
Other measures include the removal and reduction of certain transaction taxes, such as stamp duties on share transfers and withholding tax on bonus shares, as well as provisions that protect foreign investors from being taxed on naira gains without accounting for foreign exchange losses.
He emphasised that the ultimate goal is not merely to celebrate rising market indices but to translate financial market growth into tangible economic development, including financing for infrastructure, factories, innovation and job creation.
By Adedapo Adesanya
It was a bad day for the NASD Over-the-Counter (OTC) Securities Exchange on Monday, February 23, after it slumped 0.21 per cent at the close of business.
This pullback was influenced by profit-taking by investors in four securities, which overpowered the gains recorded by six others.
According to data, Central Securities Clearing System (CSCS) Plc dipped N3.79 to sell at N67.21 per unit compared with the previous N71.00 per unit, UBN Property Plc lost 13 Kobo to close at N1.98 per share versus N2.11 per share, Resourcery Plc fell 3 Kobo to 36 Kobo per unit from 39 Kobo per unit, and Geo-Fluids Plc depreciated 1 Kobo to close at N3.31 per share versus N3.32 per share.
As a result, the bourse’s market capitalisation went down by N5.04 billion to N2.384 trillion from N2.389 trillion, and the NASD Unlisted Security Index (NSI) decreased by 8.42 points to 3,985.90 points from 3,994.32 points.
Business Post reports that NIPCO Plc rose N23.00 to N253.00 per unit from N230.00 per unit, MRS Oil Plc added N14.50 to close at N214.50 per share versus N200.00 per share, FrieslandCampina Wamco Nigeria Plc grew by N1.85 to N93.40 per unit from N91.55 per unit, NASD Plc soared 40 Kobo to N51.28 per share from N50.88 per share, First Trust Mortgage Bank Plc advanced by 12 Kobo to N1.32 per unit from N1.20 per unit, and Food Concepts Plc improved by 6 Kobo to N3.76 per share from N3.70 per share.
As for the trading data, the volume of securities jumped 99.7 per cent to 7.3 million units from 3.7 million units, but the value depleted by 26.8 per cent to N61.8 million from N84.5 million, and the number of deals slipped 7.1 per cent to 39 deals from 42 deals.
At the close of trades, CSCS Plc was the most active stock by value (year-to-date) with 32.9 million units sold for N1.9 billion, followed by Geo-Fluids Plc with 120.6 million units valued at N473.4 million, and Resourcery Plc with 1.05 billion units exchanged for N408.7 million.
Resourcery Plc closed the session as the most active stock by volume (year-to-date) with 1.05 billion units worth N408.7 million, followed by Geo-Fluids Plc with 120.6 million units valued at N473.4 million, and CSCS Plc with 32.9 million units traded for N1.9 billion.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited ended the first trading session of the week on a positive note after it chalked up 0.66 per cent on Monday.
The gains recorded yesterday were boosted by the 3.42 per cent rise by the insurance sector, the 1.44 per cent surge by the banking index, and the 1.30 per cent leap by the industrial goods counter. They offset the 0.20 per cent loss posted by the energy sector and a 0.11 per cent decline suffered by the consumer goods industry.
Consequently, the All-Share Index (ASI) closed higher by 1,273.78 points to 196,263.55 points from 194,989.77 points, and the market capitalisation appreciated by N805 billion to N125.969 trillion from N125.164 trillion.
Business Post observed that investor sentiment turned bearish during the session after Customs Street ended with 34 price losers and 33 price gainers, representing a negative market breadth index.
Fortis Global Insurance gained 10.00 per cent to trade at 66 Kobo, Okomu Oil expanded by 10.00 per cent to N1,605.60, Fidson rose by 9.90 per cent to N95.50, NPF Microfinance Bank rose by 9.89 per cent to N6.89, and Infinity Trust Mortgage Bank jumped 9.84 per cent to N17.30.
On the flip side, The Initiates weakened by 10.00 per cent to N17.55, Deap Capital deflated by 9.97 per cent to N6.86, LivingTrust Mortgage Bank went down by 9.92 per cent to N5.90, Multiverse lost 9.92 per cent to close at N22.70 per cent, and Ellah Lakes shrank by 9.77 per cent to N11.55.
Yesterday, market participants traded 1.3 billion shares worth N31.5 billion in 95,091 compared with the 820.5 million shares valued at N28.3 billion in 63,507 deals last Friday, indicating an increase in the trading volume, value, and number of deals by 58.44 per cent, 11.31 per cent, and 49.73 per cent apiece.
Japaul ended the session as the busiest stock after selling 474.0 million units worth N2.0 billion, Chams traded 51.5 million units for N221.3 million, Jaiz Bank exchanged 48.3 million units for N566.9 million, Secure Electronic Technology transacted 46.3 million units worth N68.8 million, and Mutual Benefits sold 42.5 million units valued at N242.5 million.
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