Nigeria’s Securities and Exchange Commission has been urged to back a new approach to funding student housing, with its Director-General, Dr Emomotimi Agama, proposing investment funds to finance the construction of hostels in the country’s universities.
Nairametrics reported that Agama made the proposal on Friday, October 9, 2026, in Ibadan, Oyo State, where he delivered the University of Ibadan Alumni Association’s 2026 Annual Public Service Lecture.
The lecture was themed “First and Best — But Whose Capital Built It? Rethinking How Nigeria Funds Its Own Future.”
He said the shortage of student accommodation, which affects several tertiary institutions nationwide, should not be viewed only as an infrastructure crisis but also as an opportunity to generate income through investment.
According to him, about 30,000 University of Ibadan students live outside the campus because hostel facilities are inadequate, a situation that has created a large rental market for private landlords in nearby 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 close the gap, the SEC chief proposed dedicated student accommodation investment vehicles, structured as real estate investment trusts (REITs), closed-ended funds or long-term lease arrangements involving university land.
He explained that such arrangements could draw institutional investors, including pension funds, with returns generated from rental income.
He added that, under Nigerian regulations, REITs are required to distribute at least 90 per cent of their taxable income every year.
Agama further said the structures could finance hostel development without forcing universities to borrow against their general revenue or expose their balance sheets to additional financial risk.
“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.
Shortages and the poor condition of student hostels have persisted across Nigerian tertiary institutions, pushing many students to look for housing 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 alarm during the inauguration of its 2026 National Executive Council in Abuja.
Akinteye warned that inadequate and poorly maintained hostels threaten the safety, welfare and dignity of students.
The lack of on-campus accommodation has also created a market for private landlords in communities around the institutions.
Students who seek housing off campus often face high rents because of the demand for limited housing.
The persistent shortage has strengthened the case for alternative financing arrangements to expand accommodation, such as the one proposed by the SEC Director-General.
Successive government interventions in student accommodation have not removed the problem, and many tertiary institutions still face significant hostel shortages. This has fuelled growing interest in alternative financing models.
In May 2024, the Tertiary Education Trust Fund (TETFund) earmarked ₦1 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, and the funds were meant to support partnerships with private developers to expand student accommodation.
Private developers are also exploring opportunities in the student housing market, especially around universities where demand for accommodation is high.
One example is the Dantata Hostels, a private student accommodation development on a 3.39-hectare site in Abuja’s Jabi district.
The project sits beside Nile University and within walking distance of Baze University.
The development reflects growing private-sector interest in purpose-built accommodation around major tertiary institutions, as universities continue to struggle to meet student housing demand.
