A new report by Fortren & Company highlights that Nigeria’s five Real Estate Investment Trusts (REITs) hold a combined market capitalisation of $230 million, a small fraction of Africa’s $30 billion REIT market, which is 92% dominated by South Africa. Despite the sector’s growth—bolstered by the 2025 launches of the Chapel Hill Denham NREIT and the MOFI Real Estate Investment Fund—the Nigerian market faces stiff competition from high-yield government securities. While pension fund investment in local REITs grew to $50.9 million by March 2025, analysts suggest that regulatory barriers like stamp duties and taxes, combined with the preference for fixed-income yields, continue to hinder deeper institutional participation. As of late 2025, the sector showed a concentration of assets, with the MOFI and Nigeria REIT funds accounting for the majority of the industry’s net asset value.

Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has stated that the regulator will maintain heightened supervision of the banking sector despite the successful conclusion of the recent recapitalisation exercise.

Speaking at the BusinessDay 14th Annual CEO Forum, Cardoso noted that while the industry raised between N4 trillion and N5 trillion in fresh capital to build resilience against economic shocks, continuous oversight remains essential. He emphasized that the stronger capital base is intended to support eventual increased lending to the private sector once inflation and interest rates moderate. Cardoso also warned banks against indiscriminate lending, urging them to prioritize sophisticated risk management and proper analysis, especially when navigating complex sectors like oil and gas. The CBN plans to collaborate with financial institutions to enhance their internal risk assessment capabilities.