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The short answer
A real estate investment trust (REIT) is a collective investment scheme that pools investors' money to own income-producing property, such as offices, shops or homes, and passes most of the rental income to unit holders as distributions. In Nigeria, listed REIT units trade on the Nigerian Exchange like shares: you buy them through a stockbroker into your CSCS account, pay the normal trading charges, and settle on T+2. Many trade thinly, so selling can take time.
What a REIT is
Buying a building is out of reach for most savers, and even if you could, you would carry the work of finding tenants, collecting rent and maintaining it. A REIT spreads that across many investors. Investors buy units in a trust; the trust, run by a fund manager and overseen by a trustee, owns property or property-related assets; and the income, after costs, is distributed to unit holders.
- Unit holder
- You. You own units in the trust, not a share of any particular building.
- Fund manager
- Chooses and manages the properties, collects rent and handles costs.
- Trustee
- Holds the assets on behalf of unit holders and checks the manager follows the trust deed.
- Net asset value (NAV)
- The value of the trust's properties and other assets minus its debts, divided by the number of units.
REITs are collective investment schemes, so they sit under the Securities and Exchange Commission. The SEC's website links to Monthly NAV figures for collective investment schemes, a useful place to compare a REIT's reported asset value with its market price.
Where the return comes from
- Distributions: the share of rental and other income the trust pays out. Check the trust deed or latest annual report for how much and how often.
- Change in unit price: the price on the exchange, which can sit above or below NAV depending on demand.
- Change in property values: revaluations change NAV, but they only reach you if the market price follows or the trust sells property.
Nigerian property returns are shaped by rents, occupancy, the cost of maintenance and by inflation. Headline inflation was 14.63% in September 2026, according to NBS figures reported by Voice of Nigeria. Rents on existing leases may lag behind that, so compare a REIT's distribution with inflation and with safer alternatives such as treasury bills before deciding it is attractive.
How to buy listed REIT units
- Open a stockbroking account and CSCS account if you do not have one; see how to open a CSCS account and get your CHN.
- Find the REITs on the NGX daily price list (their names include "REIT") and note the last price, deals and volume; our guide on reading the price list explains the columns.
- Read the trust's latest annual report: properties held, occupancy, debt, NAV per unit and distribution history.
- Place a limit order through your broker, so you do not pay far above the last trade in a thinly traded unit.
- The trade settles on T+2, two business days after it is executed, under the cycle CSCS introduced on 28 November 2025.
- Make sure your bank details are on the registrar's e-dividend mandate so distributions reach you.
Costs and a worked example
NGX's published market structure lists, on a purchase, brokerage of 0.75% to 1.35%, a 0.3% SEC fee, 0.08% stamp duty and a ₦4 alert; on a sale, brokerage, a 0.3% NGX fee, a 0.3% CSCS fee (plus 7.5% VAT, per CSCS) and 0.08% stamp duty.
Example only. You buy 10,000 units at ₦50 (₦500,000). Purchase charges at 1.35% commission, the 0.3% SEC fee, 0.08% stamp duty and the alert come to ₦6,750 + ₦1,500 + ₦400 + ₦4 = ₦8,654, before any VAT on commission. Suppose the trust distributes ₦3 per unit over the year, ₦30,000 before any tax deducted. That is 6% of the ₦500,000 price, but only about 5.9% of the ₦508,654 you actually paid, and you have not yet paid the selling charges.
REITs compared with other property routes
| Route | What you own | Can you sell easily? |
|---|---|---|
| Listed REIT | Units in a regulated trust holding several properties | On the exchange, if there are buyers |
| Property or real estate fund (unlisted) | Units in a fund, redeemed through the manager | Depends on the fund's redemption terms |
| Property crowdfunding or fractional apps | A claim on a specific project, often through a company or note | Often only at the end of the project |
| Direct ownership | A plot or building in your own name | Slow; needs a buyer and title transfer |
Whatever the route, ask the same questions: who holds the property, what document proves your claim, who regulates the operator, and how you get your money out. Our guide on investment crowdfunding rules covers app-based property offers.
The risks
- Liquidity. Some REIT units trade rarely, and when you want to sell there may be few buyers at a fair price.
- Discount to NAV. The market price can sit well below the reported asset value for long periods.
- Concentration. A trust with a few properties, or one location, depends heavily on a few tenants.
- Valuation lag. Property values are estimates made periodically, not daily prices.
- Debt and costs. Borrowing and management fees reduce what reaches unit holders.
Where Pryme fits
Pryme does not sell REIT units. If you want property exposure but also need cash you can reach, a Flexible Savings Box can hold an emergency reserve beside a longer-term investment. For more on how listed securities trade, read how the Nigerian stock exchange works.
Questions people ask
How do I buy REITs in Nigeria?
Through a stockbroker, like shares. You need a CSCS account; you place an order for the REIT's units on the NGX, and the trade settles two business days later.
Do Nigerian REITs pay dividends?
They pay distributions from rental and other income. How much and how often is set out in each trust's documents and annual report.
Is a REIT better than buying land?
They are different. A REIT gives you a small share of several properties with no management work and can be sold on the exchange, but you have no control and selling may be slow. Land needs more money and effort and carries title risk.
Why is a REIT's price lower than its NAV?
Market price reflects what buyers will pay today. Thin trading, doubts about valuations or weak distributions can keep the price below the reported asset value.
Sources
- SEC Nigeria: home page (investor links, Monthly NAV for CIS) · accessed Oct 2026
- NGX: Market structure (exchange-traded funds page, last modified Apr 2021) · accessed Oct 2026
- CSCS: Nigeria's Transition to T+2 Settlement Cycle · accessed Oct 2026
- CSCS: Charges and Fees (pricing effective 1 Jan 2026) · accessed Oct 2026
- Voice of Nigeria: Nigeria's headline inflation drops to 14.63 per cent (16 Oct 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.