Nigeria's REIT market at $230m lags Africa's $30b as pension funds prefer bonds
Nigeria's five Real Estate Investment Trusts (REITs) hold a combined market capitalisation of $230 million, a fraction of Africa's estimated $30 billion REIT market dominated by South Africa's 92% share. This is according to Fortren & Company's Africa REIT Report covering nine African markets. The Nigerian REIT landscape has evolved since 2008, with UPDC, SFS and UHREIT historically leading until 2025 saw the launch of Chapel Hill Denham NREIT and the federal government's MOFI Real Estate Investment Fund. As of December 2025, MOFI REIT held N269.85 billion in assets (55.86% of sector NAV) while Nigeria REIT held N163.63 billion (33.87%), showing concentration in two large funds. Pension fund participation remains low despite 168% growth to $50.9 million by March 2025, as Nigerian REIT yields below 8% cannot compete with government securities offering 15-20% annual returns. Regulatory hurdles like stamp duties and withholding taxes further deter institutional investment. Prof. Kola Akinsomi of Wits University suggests REIT operators diversify into healthcare, student accommodation and logistics for stable cash flows to attract long-term capital. With REITs representing just 6.30% of Nigeria's N7.67 trillion mutual fund industry, the sector faces structural challenges in competing for institutional funds despite recent product launches.