If someone told you that you could co-own iconic commercial office towers, luxury residential estates, and shopping malls across Lagos and Abuja worth over ₦300 million with just ₦20,000 in your bank account, you would probably think it was a scam.
But this is not a clickbait promise. It is the core mechanism of Real Estate Investment Trusts (REITs)—one of the most underutilized wealth-building tools on the Nigerian Exchange (NGX).
If you have ever wanted to earn passive rental dividends without saving tens of millions for land or dealing with tenant hassles, here is your step-by-step guide on how to invest in REITs in Nigeria as a complete beginner.
What Is REITs in Nigeria?
A Real Estate Investment Trust (REIT) is a company or pooled fund that owns, operates, or finances income-generating real estate assets.
Think of REIT like a mutual fund or stock, but instead of buying shares in a single company, you are buying shares in a portfolio of real estate assets such as shopping malls, office towers, residential estates, and industrial warehouses.
Under regulations set by the Securities and Exchange Commission (SEC) in Nigeria, REITs are required to distribute at least 90% of their net rental income back to shareholders as annual or bi-annual dividend payouts.
Why Do Investors Choose REITs?
Low Entry Cost: You do not need millions to start. You can buy fractional units on the stock market.
Liquidity: Unlike physical land, which can take months to sell, you can buy or sell REIT shares on your phone within days.
Passive Income: You earn regular rental dividends without worrying about tenant management, estate service charges, or property maintenance.
Diversification: Your money is spread across multiple commercial assets rather than tied up in a single property.
Are There REITs in Nigeria?
Yes, there are REITs in Nigeria, and they have been operating for over a decade. The Nigerian REIT market is regulated by the Securities and Exchange Commission (SEC) and listed publicly on the Nigerian Exchange (NGX).
Some of the major SEC-registered REITs trading publicly in Nigeria include:
UPDC REIT : One of the largest listed REITs in Nigeria, holding commercial and residential assets across Lagos and Abuja.
SFS Real Estate Investment Trust : Focuses on high-yield residential and commercial property investments with regular dividend distributions.
Union Homes REIT : Primarily focused on residential real estate holdings.
Chapel Hill Denham NREIT: A prominent institutional real estate investment trust fund listed on the NGX.
How to Invest in REITs in Nigeria?
If you are asking where can I invest in REITs in Nigeria, the answer is simple: you buy them on the Nigerian Exchange (NGX) through SEC-licensed stockbroking firms and digital investment apps.
You can buy and manage your REIT shares using:
Digital Investment Apps: Modern, mobile-first investment platforms like Cowrywise, Trove, Bamboo, or Chaka let you buy NGX-listed REIT units directly from your smartphone.
Traditional Stockbroking Firms: Licensed SEC stockbrokers such as Stanbic IBTC Stockbrokers, Chapel Hill Denham, Meristem, or CardinalStone.
If you are ready to learn how to buy REIT, follow these five simple steps to execute your first trade:
Step 1: Choose a SEC-Registered Platform
Select a licensed stockbroker or digital investment app registered with the Securities and Exchange Commission (SEC).
Step 2: Open a Trading and CSCS Account
Sign up and complete your basic Know-Your-Customer (KYC) verification by uploading your National Identification Number (NIN), Bank Verification Number (BVN), and proof of address. Your broker will automatically open a CSCS (Central Securities Clearing System) account for you which is the official digital depository where your Nigerian shares and REIT units are securely held.
Step 3: Fund Your Account
Deposit your starting investment capital into your trading wallet via bank transfer or debit card.
Step 4: Search for the REIT Ticker
Search for your preferred listed REIT ticker on the app (such as UPDC, SFSREIT, UHREIT, or NREIT).
Step 5: Place Your Buy Order
Enter the number of units you want to purchase or the total amount of Naira you want to invest, review the order details, and click Buy. Once matched, the REIT units will reflect in your CSCS account.
Combining REITs with Direct Property Ownership
REITs are an ideal starting point for building liquid, income-generating real estate capital. As your investment portfolio grows, combining liquid REIT dividends with direct, physical land banking in high-growth corridors helps secure both cash flow and long-term asset appreciation. (To see how direct land ownership strategies compare, read our complete guide on the Best Type of Land to Buy for Investment in Nigeria, or learn how buying structured estate plots compares to individual land plots in Single Plot vs. Estate Development in Lagos: Which Is Better?.)
Knowing how to invest in REITs in Nigeria empowers you to take control of your financial future early, allowing your capital to work for you in the real estate market regardless of your budget.