The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, has proposed the institution of investment funds to finance scholar hostel development in Nigerian universities, as establishments wrestle with insufficient lodging services.
Agama made the proposal on Friday, October 9, 2026, whereas delivering the University of Ibadan Alumni Association’s 2026 Annual Public Service Lecture in Ibadan, Oyo State, themed “First and Best — But Whose Capital Built It? Rethinking How Nigeria Funds Its Own Future.”
He argued that the scarcity of scholar lodging, a problem affecting a number of tertiary establishments throughout Nigeria, might be transformed into an income-generating investment alternative moderately than handled solely as an infrastructure disaster.
Agama proposes REITs for university hostels
Agama famous that roughly 30,000 University of Ibadan college students presently reside outdoors the campus due to insufficient hostel services, creating a considerable rental marketplace for personal landlords in surrounding communities.
- “Thirty thousand students who cannot be housed on this campus are today paying rent to private landlords in Agbowo, Bodija and Sango. That is a real, recurring, naira-denominated, demand-backed income stream, and it is currently being harvested by everybody except this University,” he mentioned.
To handle the scarcity, the SEC DG proposed establishing devoted scholar lodging investment automobiles by actual property investment trusts (REITs), closed-ended funds or long-term lease preparations involving university land.
He defined that such preparations might entice institutional buyers, together with pension funds, whereas producing returns by rental revenue. Under Nigerian laws, REITs should distribute at the very least 90% of their taxable revenue yearly.
Agama additional defined that these investment constructions might finance hostel growth with out requiring universities to borrow in opposition to their basic income or expose their steadiness sheets to further monetary dangers.
- “It does not require the University to borrow against its general revenue. It does not put the institution’s balance sheet at risk. The vehicle is repaid from the rents the buildings themselves generate,” he added.
NANS raises alarm over hostel shortages
The scarcity and deteriorating situation of scholar hostels have remained persistent challenges throughout Nigerian tertiary establishments, forcing many college students to search lodging outdoors their campuses.
- In July 2026, the National Association of Nigerian Students (NANS) declared a nationwide emergency over worsening hostel situations in universities, polytechnics and faculties of training.
- The affiliation’s newly inaugurated President, Babatunde Akinteye, raised the priority throughout the inauguration of its 2026 National Executive Council in Abuja.
- Akinteye warned that insufficient and poorly maintained hostels threatened college students’ security, welfare and dignity.
The scarcity of lodging inside campuses has additionally created a marketplace for personal landlords in surrounding communities.
Students looking for lodging outdoors their campuses typically face excessive rental prices due to demand for restricted housing.
The persistent scarcity has additionally strengthened the necessity for different financing preparations to develop lodging services, as proposed by the SEC DG.
TETFund backs personal hostel growth partnerships
Despite successive authorities interventions in scholar lodging, many tertiary establishments proceed to face vital hostel shortages, prompting rising curiosity in different financing preparations.
- In May 2024, Nairametrics reported that the Tertiary Education Trust Fund (TETFund) had earmarked N1 billion every for hostel growth in 12 tertiary establishments beneath its 2024 intervention cycle.
- The intervention coated six universities, three polytechnics and three faculties of training, with the funding supposed to assist partnerships with personal builders to develop scholar lodging.
- Private builders are additionally exploring investment alternatives within the scholar housing market, significantly round universities with vital demand for lodging.
- In April 2026, a report printed by Nairametrics highlighted Dantata Hostels, a personal scholar lodging growth on a 3.39-hectare web site in Abuja’s Jabi district.
- The undertaking is positioned beside Nile University and inside strolling distance of Baze University.
The growth displays rising private-sector curiosity in offering purpose-built lodging round main tertiary establishments, as universities proceed to face challenges in assembly scholar housing demand.
