SEC DG proposes investment funds to finance university hostels

The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, has proposed the establishment of investment funds to finance student hostel construction in Nigerian universities, as institutions struggle with inadequate accommodation facilities.

Agama made the proposal on Friday, October 9, 2026, while 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 shortage of student accommodation, a challenge affecting several tertiary institutions across Nigeria, could be converted into an income-generating investment opportunity rather than treated solely as an infrastructure crisis.

Agama proposes REITs for university hostels

Agama noted that approximately 30,000 University of Ibadan students currently live outside the campus due to inadequate hostel facilities, creating a substantial rental market for private 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 said.

To address the shortage, the SEC DG proposed establishing dedicated student accommodation investment vehicles through real estate investment trusts (REITs), closed-ended funds or long-term lease arrangements involving university land.

He explained that such arrangements could attract institutional investors, including pension funds, while generating returns through rental income. Under Nigerian regulations, REITs must distribute at least 90% of their taxable income annually.

Agama further explained that these investment structures could finance hostel development without requiring universities to borrow against their general revenue or expose their balance sheets to additional financial risks.

• “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 shortage and deteriorating condition of student hostels have remained persistent challenges across Nigerian tertiary institutions, forcing many students to seek accommodation outside their campuses.

• In July 2026, the National Association of Nigerian Students (NANS) declared a national emergency over worsening hostel conditions in universities, polytechnics and colleges of education.
• The association’s newly inaugurated President, Babatunde Akinteye, raised the concern during the inauguration of its 2026 National Executive Council in Abuja.
• Akinteye warned that inadequate and poorly maintained hostels threatened students’ safety, welfare and dignity.

The shortage of accommodation within campuses has also created a market for private landlords in surrounding communities.

Students seeking accommodation outside their campuses often face high rental costs due to demand for limited housing.

The persistent shortage has also reinforced the need for alternative financing arrangements to expand accommodation facilities, as proposed by the SEC DG.

TETFund backs private hostel development partnerships

Despite successive government interventions in student accommodation, many tertiary institutions continue to face significant hostel shortages, prompting growing interest in alternative financing arrangements.

• In May 2024, Nairametrics reported that the Tertiary Education Trust Fund (TETFund) had earmarked N1 billion each for hostel development in 12 tertiary institutions under its 2024 intervention cycle.
• The intervention covered six universities, three polytechnics and three colleges of education, with the funding intended to support partnerships with private developers to expand student accommodation.
• Private developers are also exploring investment opportunities in the student housing market, particularly around universities with significant demand for accommodation.
• In April 2026, a report published by Nairametrics highlighted Dantata Hostels, a private student accommodation development on a 3.39-hectare site in Abuja’s Jabi district.
• The project is located beside Nile University and within walking distance of Baze University.

The development reflects growing private-sector interest in providing purpose-built accommodation around major tertiary institutions, as universities continue to face challenges in meeting student housing demand.