₦airaland Forum

maishai:
Oga

For whatever u say mind u, there are a million and one meaning that u imply which u may not be voicing out......

First and foremost thank u for implying that millionaires and maybe billionaires grace this thread

2.) u seem not to understand the weight of ur request, many of us here are averse to even our wives seeing our account balance not to talk of a handing a total stranger ur bank statement........ Seriously, I want to believe Oyedepo laid hands on u cos ur request bold gan

3.) Do unto others what u do to urself. As a true Nigerian can u release ur bank statement to someone u have no personal relationship with other than brief meetings on social platforms........

4.) my dear calm down, use this energy well off line, the fact that u have paid part of ur tuition means u or ur family is probably well to do....... Getting a statement of that magnitude is not beyond ur circle, do whatever it would take offline to achieve ur dreams even if it means kissing ass.

I asked. Its been more than a month I have been running around for this, reasons why I had to try here as the school gave me a deadline being thursday 25th march.

I even said I will pay 100k to show gratitude how grateful I am getting such help from a stranger. It's not easy.

I don't mind sharing my contact details, if there are anything to be scared of.

I know how and when I started this journey from nairaland to offline reasons why it pains me alot seeing this happening this way after 5 years I have been on nairaland crying for help all of a sudden God remembered me this 2021 now documents to package my travel now the issue.

helpyom:
I asked. Its been more than a month I have been running around for this, reasons why I had to try here as the school gave me a deadline being thursday 25th march.

I even said I will pay 100k to show gratitude how grateful I am getting such help from a stranger. It's not easy.

I don't mind sharing my contact details, if there are anything to be scared of.

I know how and when I started this journey reasons why it pains me alot seeing this happening this way after 5 years I have been on nairaland crying for help all of a sudden God remembered me this 2021 now documents to package my travel now the issue.

What do you need?

yazga:
What do you need?

Good evening sir,

I have an offer letter for 2 year Graduate entry Nursing Australia with 2 years partial scholarship.

My offer letter is on conditional letter the school is an AL1 University.

They requested to see a statement of account with AUS$60,000 (18Mils naira) before they can verify me.
The tuition and the partial scholarship are sorted.

Been running around for this documents for months I have been able to see 10mils but the needed amount in the statement of account is 18mils-20mils in the account atleast for 4-6weeks of the verification.

PS : I don't mind paying 100k for the documents just to appreciate the help.

afroxyz:
if dem give me those kain conditions i for close account

You will not know by mere seeing them, some come with expensive "borrowed" cars to create a first impression, well starched dressed and super expensive perfume, the ONLY way is to be 89% sure of their source of income, place of work (make sure you visit their place of work to find out if they actually work there), previous abode super important and if you can get in contact with the landlord/lady ask questions-
1. why did he leave?
2. Does he owe?
3. Make sure there is a space provided in the form, where he will fill the name of his previous landlord and the address, if he refused to fill it, it's a red flag Th

These will guide you on what the next action you will take.

All these are my research on the internet.

NL1960:
If you remove all these categories of people, who is left to rent to?. With the high unemployment in the country, how many people are actually gainfully employed?.

Then Invest in REITS

Lazyyouth4u:
Who is this one? Clout chaser like you. What do you know about finance? You think say this na main market? Come on get away from here and go follow your kind talk. If not for Nairaland, I swear person like you no fit stand near me. Talk less of talking where I dey. Fear no go let you. On God!

Very funny.Why I go stand you when I no dey follow ashi. You no go find mistake for the English...ewu.Next na for igbo I go reply.Do you have anything meaningful attached to your name.Is your type the only thing you do is to stand by people gate to take pictures.Then after weekend f ...king na to buy clothes,shoes and make hair..I stay in abj precisely locogoma so I see your type every day,lol

SeaTrade:
That was the most stupid thing I've heard today.
Manipulating a stock just by posting stuff on investment thread.
The girl must think too highly of this place,more example of someone living in an ideal(unrealistic) world.
For the girl to stay one place make e mama dey feed am,she no gree. ....
Na to come here dey form oversabi she knows best.
How Aba today my man?You sell market at all today?

.Not really into trading,is wify thing since she left cooperate work.Though I financed it.Is my bro that is into wine in osha.I am a person who find it difficult to sit at a place.So my personalexperience in trading is when I visit wify,bro and friends.

Biafran4life:
.Not really into trading,is wify thing since she left cooperate work.Though I financed it.Is my bro that is into wine in osha.I am a person who find it difficult to sit at a place.So my personalexperience in trading is when I visit wify,bro and friends.

Oh I see.
If you mention your bro name in Onitsha,I might know him.
Yeah trading can be boring,monotonous and unnecessarily competitive.
But it's where we find ourselves, unless something better comes up.

Biafran4life:
Very funny.Why I go stand you when I no dey follow ashi. You no go find mistake for the English...ewu.Next na for igbo I go reply.Do you have anything meaningful attached to your name.Is your type the only thing you do is to stand by people gate to take pictures.Then after weekend f ...king na to buy clothes,shoes and make hair..I stay in abj precisely locogoma so I see your type every day,lol

All you have described is your wife, mother and sister. Vile human being. Sorry to disappoint you but I am a man and let me repeat, you can never ever smell the circles that I operate in. Walahi on God! Na your type I dey see for road come dey pity but na una dey get bad mind pass. Just look at how you describe a woman just because you dey find likes. I’m not even surprised. Anyone with that moniker you use is a frustrated lost cause. Take this as my last response to a persona non grata like you. Make your bad luck no go rub off on me o. Clout chaser oshi. After you go come dey wonder why poverty dey hook your family for neck like bow tie.

EarlyCareer:
Thank you for sharing, yagza.

Lazyyouth has a loose nut in her/his head. I honestly do not want to encounter her at all, however the article above vindicates her.

Always do due diligence, people. Not everything we advice here is correct, we are humans after all. We err sometimes.

I have a lose nut because I speak the truth or because I respond to vile riff raffs that insult me? Which one? You hide behind your cheap phone and yearn dust because you want to be accepted by the herd who will dash you likes for bashing lazyyouth? Kwantinue. You go get the likes.

SeaTrade:
To stay and rant online is easy,I no longer do that as I got bigger.
If you want to talk,you can always schedule a meeting and I will honour it if the location is port harcourt.
If you can still keep this energy when we meet then great.

Schedule meeting with a dirty riff raff like you? Over my dead body. Carry your dirty energy and go and schedule meeting with your fellow fake drinks sellers, mechanics and agberos for street. Look at the dirty thing that wants me to schedule meeting with him?? Tufia!

helpyom:
I asked. Its been more than a month I have been running around for this, reasons why I had to try here as the school gave me a deadline being thursday 25th march.

I even said I will pay 100k to show gratitude how grateful I am getting such help from a stranger. It's not easy.

Go to your pastor and ask him to give you his statement of account. Pastors have lots of money from all the tithes dey steal from gullible idiots. After the pastor has given you his statement, use that 100k to sow a seed in his ministry. Just an advice.

I don tell you true but you won’t listen. We are audio millionaires here and we sef dey feel the same poverty you are feeling but we use NL audio wealth and billions to console ourselves. Stop wasting your time here my friend. If your family and pastor won’t help, then just go like that and hope for a miracle. Miracles still happen.

Please i beg you enough of this fight. Some of us do come here when we want something very serious.
It wasn't like this when i gets good infos from this place years back. Trying to navigate to know the new system of things just insults everywhere

Lazyyouth4u:
Schedule meeting with a dirty riff raff like you? Over my dead body. Carry your dirty energy and go and schedule meeting with your fellow fake drinks sellers, mechanics and agberos for street. Look at the dirty thing that wants me to schedule meeting with him?? Tufia!

lol,that is the engine of my toyota hilux I'm fixing,which I'm sure you can't afford going by the way you are useless here 24/7 picking one yeye fight or the other.
The mechanic you are bashing and claiming they are nothing is actually a young guy( early 30s) that is doing so well for himself,drives a 2013 car(around 4m) ,have a host of boys working under him ,takes care of his family very well and you need to see vehicles queuing up in his shop begging him with money to fix their trucks(company owned cars sef follow.
I'm sure he can't be as jobless,useless and economically worthless like you to have the time to come here and be lazying all day in the name of tbills thread.
I personally payed 300k for him to start working on that engine you are seeing and Isnt done yet.So you see,you and the mechanic no be even mates sef
Btw that's a 2tr-fe engine,the same one in 2016 prados and cost a whopping N1.7m which I know even if you sell your kidney,you can't have.
And the Nike's slippers alone can be your pocket money for 2 months,
Empty drum.
And that's just one of my cars,ode.

Oya....... E don do...... Sorry to all participants




Let's get back to worthwhile economic discurssions

Lazyyouth4u:
Go to your pastor and ask him to give you his statement of account. Pastors have lots of money from all the tithes dey steal from gullible idiots. After the pastor has given you his statement, use that 100k to sow a seed in his ministry. Just an advice.

I don tell you true but you won’t listen. We are audio millionaires here and we sef dey feel the same poverty you are feeling but we use NL audio wealth and billions to console ourselves. Stop wasting your time here my friend. If your family and pastor won’t help, then just go like that and hope for a miracle. Miracles still happen.

Uncle free me oo.

PS: Please don't involve my issue insulting pastors do it for your own self not my own issue abeg.

Aligning my issue to bringing insults to people who should be respected is NOT ACCEPTED.

Even though am soliciting for help shouldn't make us loose our morals, if you don't respect your creator please don't channel your frustration to another person since you don't want to accept it.

helpyom:
Uncle free me oo.

Na just advice I dey give you madam. Go to your pastor jor and stop wasting your time here

helpyom:
Uncle free me oo.

PS: Please don't involve my issue insulting pastors do it for your own self not my own issue abeg.

Aligning my issue to bringing insults to people who should be respected is NOT ACCEPTED.

Even though am soliciting for help shouldn't make us loose our morals, if you don't respect your creator please don't channel your frustration to another person since you don't want to accept it.

What is this one saying? That pastors are not thieves? Is a pastor my creator? Where do you think the pastors get all the money to buy private jets and mansions? Use your brain madam. Now I can understand why you are on this thread hoping for a miracle that will never happen

Lazyyouth4u:
What is this one saying? That pastors are not thieves? Is a pastor my creator? Where do you think the pastors get all the money to buy private jets and mansions? Use your brain madam. Now I can understand why you are on this thread hoping for a miracle that will never happen

Free me sir.

Lazyyouth4u:
I have a lose nut because I speak the truth or because I respond to vile riff raffs that insult me? Which one? You hide behind your cheap phone and yearn dust because you want to be accepted by the herd who will dash you likes for bashing lazyyouth? Kwantinue. You go get the likes.

I actually did support your argument when all were attacking you because you were right about the REITs issue.

You are brilliant, but your approach and the bile that comes out of your mouth when making an argument is why I said you have a loose nut somewhere...it is actually not an insult, it is just what it is. Quite concerning too, however, it is not my business.

what am I using likes for, that I am fishing for it? I don't seek to please anyone nor find clout here. I also don't frequent this thread often.

I expect that you will reply to finish me as usual or maybe dig up my own "past". It matters not to me, this is my last response to you.

Best wishes.

EarlyCareer:


I actually did support your argument when all were attacking you because you were right about the REITs issue.

You are brilliant, but our approach and the bile that comes out of your mouth when making an argument is why I said you have a loose nut somewhere...it is actually not an insult, it is just what it is. Quite concerning too, however, it is not my business.

what am I using likes for, that I am fishing for it? I don't seek to please anyone nor find clout here. I also don't frequent this thread often.

I expect that you will reply to finish me as usual or maybe dig up my own "past". It matters not to me, this is my last response to you.

Best wishes.

I have nothing more to say to you

helpyom:
Uncle free me oo.

PS: Please don't involve my issue insulting pastors do it for your own self not my own issue abeg.

Aligning my issue to bringing insults to people who should be respected is NOT ACCEPTED.

Even though am soliciting for help shouldn't make us loose our morals, if you don't respect your creator please don't channel your frustration to another person since you don't want to accept it.

He actually said the bitter truth. Without the insult though.

In a situation like this, your pastor is your best option not a random man on the internet.

If your pastor won't use his own account, he can easily help you get someone to do it for you.

QuinModah:
You will not know by mere seeing them, some come with expensive "borrowed" cars to create a first impression, well starched dressed and super expensive perfume, the ONLY way is to be 89% sure of their source of income, place of work (make sure you visit their place of work to find out if they actually work there), previous abode super important and if you can get in contact with the landlord/lady ask questions-
1. why did he leave?
2. Does he owe?
3. Make sure there is a space provided in the form, where he will fill the name of his previous landlord and the address, if he refused to fill it, it's a red flag Th

These will guide you on what the next action you will take.

All these are my research on the internet.

You are absolutely right. Background check is necessary. But the part that got me cracking was that the person's wife has to be working.

On a serious note, when some think of nigerians and their attitude, they just prefer to invest than bring money inro real economy

OgogoroFreak:
He actually said the bitter truth. Without the insult though.

In a situation like this, your pastor is your best option not a random man on the internet.

If your pastor won't use his own account, he can easily help you get someone to do it for you.

Good morning sir, like i previously said nobody around me or close to me has such, I have been able to see but not the exact amount I was requesting for.


I hope that makes it understandable? Now can we stop bringing about the pastors issues as it's not the pastor paying my tuition neither was it the pastor that gave me the 2 years partial scholarship.

Just like I believe I will get the help am looking for whether online or offline so far I was open to my challenges not being depressed.

Thank you and do have a splendid day.

yazga:
Good news, do you have a binance Account

Good morning

Shey na person way get money go open binance account

What's the latest tb rate

No

Diogo2019:
Good morning

Shey na person way get money go open binance account

LauraClasikVibe:
No

Oya gist me more..... person fit make money from binance without investing??

I believe the answer is NO

The answer is YES!

Diogo2019:
Oya gist me more..... person fit make money from binance without investing??

I believe the answer is NO

EarlyCareer:


I actually did support your argument when all were attacking you because you were right about the REITs issue.

You are brilliant, but your approach and the bile that comes out of your mouth when making an argument is why I said you have a loose nut somewhere...it is actually not an insult, it is just what it is. Quite concerning too, however, it is not my business.

what am I using likes for, that I am fishing for it? I don't seek to please anyone nor find clout here. I also don't frequent this thread often.

I expect that you will reply to finish me as usual or maybe dig up my own "past". It matters not to me, this is my last response to you.

Best wishes.

sometimes we need people as such that differs a conventional position on opinion/arguments to enable us make better judgement.

But ehhn...Lazyyouth4u can just decide to become a pain I don't understand ... just pick what you need from him and move...One shouldn't stress self replying

handsomebolanle:
sometimes we need people as such that differs a conventional position on opinion/arguments to enable us make better judgement.

But ehhn...Lazyyouth4u can just decide to become a pain I don't understand ... just pick what you need from him and move...One shouldn't stress self replying

Your first paragraph is actually what I try to do. I just take an opposing view and play devil’s advocate to let people reading see the other side of an argument. Funny enough in some cases, I actually agree with that person.

For your second paragraph, I have no comment .

yazga:
AN EXPOSITION ON THE CHALLENGES AND PROSPECTS OF REAL ESTATE INVESTMENT TRUSTS IN NIGERIA

Introduction

Globally, there has been a surge in property investments in the past few decades. As of the early 2000s, property investment accounted for the second largest investment sector in the US, next only to fixed-income securities, but larger than shares and the money market[1]. This surge could be explained by the unique benefits offered to property investors such as income stability, capital growth, tax reduction and hedge against inflation which most other traditional investment options such as shares, and bond do not provide.

A REIT is a form of a property/asset backed collective investment scheme which itself constitutes a part of the larger concept of securitization. Essentially, a REIT is a company that owns, and operates income producing real estate asset or properties such as office buildings, residential buildings, shopping malls, tourism related facilities, healthcare facilities, industrial facilities, infrastructures, and warehouses, whose shares are publicly traded in a way similar to any other stock.[2] Simply put, a REIT is a company or a trust that pools fund from individual investors, acquires and operates income generating real estate, and distributes the income derived from their owned properties as dividend.[3]

The origins of REITs is traceable to the United States of America where the US congress in the 1960’s created the  legal framework for REITs with a view to providing affordable access to investment in commercial property to all investors. Over the years, many countries around the world have come to adopt the REITs structure as a component of their securities market. As at 2011, there were 22 countries and territories around the world that have established REIT regimes.

In Nigeria, the enactment of the Investment and Securities Act, in the year 2007 paved the way for the introduction of REITs. That same year, the first ever REITs in Nigeria – the N2bn (US$10m) Skye Shelter Fund, was launched following the issuance of guidelines for registration and requirement for operation by the Securities and Exchange Commission (SEC). There are presently three registered REITs in Nigeria namely: Skye Shelter fund, Union Homes, and UACN Property Development Corporation (UPDC).

Within the African REIT context, Nigeria’s REIT market since 2007 rank amongst the oldest. This has however not translated into growth and acceptability of REITs in the country. In fact, other African countries that subsequently introduced REITs have record more successes than Nigeria in terms of acceptability and capitalization of REITs. It is against this backdrop that this article intends to examine and provide insights on the performance of Nigerian REITs, as well as provide recommendations on how to further improve REITs performance in the country

Legal Regime for the Registration of REITs in Nigeria

The Investment and Securities Act 2007[4] (ISA) along with the subsidiary rules made pursuant thereto,[5] constitutes the statutory framework for the registration and regulation of REITs in Nigeria. Accordingly, Section 193 of the ISA defines REIT as:

A body corporate incorporated for the sole purpose of acquiring intermediate or long term interests in real estate or property development [and] may raise funds from the capital market through the issuance of securities.

 Similarly, Section 194 of the Investment and Securities Act 2007 states that:

A real estate investment company or trust may be registered by the commission if it:

(a) is a body incorporated under the Companies and Allied Matters Act.

(b) has a capital and reserve as prescribed by the commission from time to time.

(c) carries on business as a collective investment scheme solely in properties.

(d) complies with the requirement prescribed by the Commission through its rules and regulations made from time to time.

 

However, for a REIT to be registered by Securities and Exchange Commission (SEC), at least 50% of its total shares subscription must have been subscribed.[6]

 

In the same vein, Rules 511-542 of the consolidated SEC Rules 2013 make elaborate and specific provisions on the registration of REITs by the Securities and Exchange Commission.

 

 

Under the present legal regime, the following are the major categories of REITs:

Publicly Traded REITs/ Private REITs

Public REITs are REITs that are fully registered and regulated by the Security and Exchange Commission. They are typically listed on the Nigerian Stock Exchange and their securities/units of investments are publicly traded.

On the other-hand, Private REITs are privately owned REITs that are not listed nor traded on the Nigerian Stock Exchange. They are also not permitted to offer their securities to the public and only rely on private placement directed at high net-worth individuals in raising funds.

Equity REITs/Mortgage REITs

Equity REITs invest primarily in the acquisition and ownership of real estate such as residential apartments, malls/retail outlets, hotels, office/industrial complex, and rely on income generated from the collection of rent, and sales of these properties. Under the consolidated rules made pursuant to the ISA, 75% of the funds held by an equity REIT shall be in real estate, while the remaining 25% may be in real estate related asset.[7]

Mortgage REITs advance loans to mortgage institutions and even individuals for the financing of mortgages. Sometimes, they purchase existing mortgages and mortgage backed securities. At least 75% of the funds held by a Mortgage REIT must be in mortgage assets, while the remaining 25% may be in real estate related assets.[8]

For both Equity and Mortgage REITs, not more than 10% of their total assets shall be in liquid assets.[9]

Parties to a REIT

The following are the primary parties to a REIT transaction:

Issuer/Promoter: This could either be an individual(s) or a company who envisions and registers the REIT. With them lie the powers to appoint trustees for the REIT. The promoter may become an investor by investing his land or asset into the REIT.

Unitholder/Investor: These are private individuals or members of the public who hold equitable interests in a REIT. They are entitled to receive periodic distribution of income and participate in any capital appreciation of the properties that make up the REIT.

Trustee: The trustee is responsible under the Trust Deed for the safe custody of the Assets of the REIT and holds the assets in the name of the REIT. Furthermore, the trustee oversees the activities of the manager and ensures the manager undertakes reporting and disclosures as per the trust deed and relevant regulations.

Manager: The fund manager is appointed to manage and administer the REIT in accordance with the objectives of the REIT as stated in the trust deed. The manager also identifies and recommends investment opportunities to other stakeholders.

Custodian: They are entrusted with the Title documents of the properties that form a REIT for safe keeping.

Property Manager: The property manager is appointed by the REIT manager and is in charge of the daily management of the properties that constitute the REIT and ensuring the properties are in good repairs.

Factors that Adversely Impact REITs Performance in Nigeria

There are broadly two classifications of factors that adversely impact on the performance of REITs, these are: formal factors which are the economic and market factors; and informal factors which encompass socio-political and operating environment.[10] In Nigeria, the following are some of the peculiar factors that impinge REITs performance:

Capitalization (size)

There is a direct correlation between the size in terms of capitalization of a REIT and its viability/potentials for increased revenue. This is hinged on the principle of economies of scale that may favor large REITs in terms of low operational costs and sufficient funding. More so, large REITs are better able to absorb economic shocks and manage economic downturns due to the availability of sufficient capital at their disposal which they can deploy as a buffer. Unfortunately, all of the registered REITs in Nigeria are medium scale REITs in terms of their capitalization. For example the combined market capitalization of the three REITs in Nigeria is US$131 Million,[11] while in the United States, the combined market capitalizations of REITs stands to the tune of US$898.41billion.[12] This hampers the ability of REITs in Nigeria to respond adequately to economic upheavals.

Economic factors

Up until recently, Nigeria was enmeshed in economic recession which contracted the economy by more than 1%.[13] This fact is compounded with the high inflation and interest rates effective in the country. The resultant effect of this economic state of affairs is that there is low liquidity in the country for investments in REITs by potential investors. This may explain the reason why the Haldane McCall REIT was unable to be listed after failing to reach the minimum 50% subscription from the initial public offer. Top Services Limited has also proposed a N20 billion REIT but same is yet to be fully launched. Furthermore, not a few of the properties under REITs are fully occupied. This is because of the decreased earnings of the average Nigerian who many a times find those properties unaffordable.

Infrastructural Challenges

There is no gainsaying that the value of a property is enhanced by the availability of the necessary infrastructural amenities such as good roads, electricity supply, water supply, amongst others. In Nigeria, where such amenities are neither readily available nor accessible, the value of most properties are diminished and this impacts on income derivable either as rent or gains from those properties that constitutes a REIT.

Property Transactions Costs

The cost of perfecting interests/Title in real estate is very expensive in Nigeria. Similarly, the process involved in seeking and obtaining Governor’s consent on transactions bordering on the transfer of legal interests in real estate as provided under the Land Use Act is rigorous and frustrating.  Inevitably, these factors impact adversely on REITs performance, since the primary object of REITs centers on real estate transactions including sale and purchase of real estate assets.

Low Investor Awareness

Many individual investors are oblivious of REITs as an investment option with many associated benefits. Even the few institutional investors who are knowledgeable about REITs still have a poor perception about it and are generally disinclined to invest fully in the scheme. It would have been more desirable if these institutional investors were a little more receptive of REIT investments, as their investment decisions may not only help instill confidence and give credibility to REITs, but also spur other individual investors to follow suit.

Prospects of REITs in Nigeria

Notwithstanding the above highlighted challenges, investment in REITs portends a lot of benefits not just to the investor alone, but to the larger society. Some of these benefits include:

High and Reliable Returns

Returns is essentially the profit derived from an investment and is of three types: income; capital appreciation; and value gain. It has been proven through numerous studies that returns from REITs investment most times combine the three types of returns. [14] For example, an investment in income generating property such as a residential apartment let out to tenants, incorporates the three types of measurable returns. Furthermore, the average global dividend yield for REITs was about 4.3% in September 2012 far above some other traditional investment options.

Tax Benefits

Though there is some sort of ambiguity on the tax regime for REITs in Nigeria,[15] it is generally agreed that the tax treatment for REITs is very advantageous compared to that of other investment options. Income distributed as dividends are exempt from companies income tax, while a withholding tax of 5% is applicable to dividends received by investors. However, undistributed income will be taxed at the corporate tax rate.[16]

 

 

Liquidity and Diversification of Investment Portfolio

Real Estate is classified as an illiquid asset. However, investments in REITs have made it possible to hold liquid interests in real estate which can be transacted on the stock exchange rather than buying properties directly. Furthermore, REITs afford investors the opportunity to invest their funds in different property types across various geographical spread thereby reducing risks and volatility of investment.

Economic Growth

Nigeria presently has a housing deficit of 17 million.[17] Investments in REITs can help reduce this deficit by providing affordable housing to the teeming populace. More so, the real estate industry is intricately connected with other pivotal sectors of the economy such as the construction, service, and consumer industries. Accordingly, a viable and robust real estate investment industry will create jobs and distribute wealth across the country.

Hedge against Inflation

REITs provide an effective and formidable hedge for investments against inflation. This is because real estate income tends to increase in proportion to a corresponding increase in inflationary rates.

Conclusion

A dispassionate assessment of REITs in Nigeria reveals under-performance. This is evident in the number of registered REITs listed on the Nigeria Stock Exchange. Since 2007, when the first REIT was registered, Nigeria presently can only boast of 3 registered REITs. This can be compared with a country like South Africa, where despite the fact that the REIT legislation was passed as recent as 2013, currently boasts of 31 REITs with a combined value of over $31.42 billion.[18] This leaves much to be desired. Similarly, almost all of the 3 registered REITs in Nigeria have been struggling with decreased revenue, and decline in profits distributed as dividends to investors.[19] This has also contributed to the palpable apathy by investors in investing in REITs securities. In the light of the foregoing, the following recommendations are apt:

Adoption of Favourable Economic Policies by Government

The government should endeavor to implement policies that will occasion economic growth. This may include reducing the monetary rates and the cash reserve ratio of banks so as to consequently reduce interest rates and make more money available in circulation. The government should also adopt measures to reduce inflation.

Reduction of Property Transaction Costs

Property transaction costs such as consent fee, registration fee, and capital gains tax should be reduced so as not to erode the income of REITs. Also a special REIT registry may be created and dedicated to handling all REIT related property transactions.[20]

Improved Awareness on REITs

There should be concerted efforts by existing and Prospective REITs on sensitizing investors and the public at large on the immense benefits of investing in REITs securities. This will help stimulate interests in REITs and ultimately improve the capitalization of the REIT market.
Article by Olayinka Alao LLM (Lagos), BL (Abuja), LLB (Lagos)

Thanks for sharing. Do you have a link to the article