SEC DG proposes private capital model to expand university accommodation
Lagos, Oct. 2026 – Dr Emomotimi Agama, the Director-General of the Securities and Exchange Commission (SEC), has proposed dedicated investment funds to finance student hostel construction in Nigerian universities.
He said this would present an alternative model for addressing accommodation shortages through private capital.
Agama made the proposal while delivering the University of Ibadan Alumni Association’s 2026 Annual Public Service Lecture in Ibadan t the weekend.
He said student accommodation could become an income-generating investment opportunity rather than remain solely an infrastructure challenge.
Agama proposed using real estate investment trusts (REITs), closed-ended investment funds and long-term lease arrangements involving university land to finance purpose-built student accommodation.
He said the proposed structures could attract institutional investors, including pension funds, by allowing them to invest in hostel developments that generate rental income.
“Rather than requiring universities to borrow against their general revenue, the model would use income from the completed buildings to repay investors,” he said.
Agama said the approach could limit the financial exposure of universities while creating an investment route for institutions seeking long-term, income-generating assets.
Track Investments
Under Nigeria’s REIT framework, the trusts referenced in the proposal must distribute at least 90 per cent of their taxable income annually. However, the proposal does not yet amount to an announced funding programme, and its implementation would depend on the structure of individual projects, investor participation and applicable regulatory requirements.
30,000 University of Ibadan Students Live Off Campus
The scale of unmet demand was illustrated by Agama’s estimate that approximately 30,000 University of Ibadan students live outside the campus because of inadequate hostel accommodation.
He noted that students in nearby communities, including Agbowo, Bodija and Sango, pay rent to private landlords, creating a recurring income stream around the university.
The situation highlights the relationship between shortages in institutional accommodation and demand in surrounding residential markets. Where university hostels cannot accommodate students, nearby rental properties become an alternative, potentially increasing competition for available rooms.
Tour Colleges
For developers and investors, the demand could support purpose-built student housing. However, the commercial viability of such projects would depend on rental affordability, occupancy levels, construction costs, maintenance expenses and the capacity of students to pay.
Student Housing Shortages Create an Opportunity for Private Capital
The SEC proposal comes amid persistent concerns about the condition and availability of student accommodation across Nigeria’s universities, polytechnics and colleges of education.
In July 2026, the National Association of Nigerian Students declared a national emergency over worsening hostel conditions, citing concern concerns about student welfare, safety and dignity. (NHM)
