Real Estate Investment Trusts (REITs) are explicitly recognised by the Securities and Exchange Commission (SEC) Nigeria as a Collective Investment Scheme (CIS) that pools investor funds to acquire, hold, manage, and invest in income-generating real estate and related assets. That is straight from the SEC’s own CIS portal, which also confirms REITs sit firmly under the SEC rulebook and application process.

What Is a REIT?

Per SEC Nigeria, a REIT is a CIS that directly invests in income-generating real estate (and real-estate-related assets) using pooled subscriptions from unit holders. In other words, rather than buying properties yourself, investors take units in a trust that owns (and sometimes finances) multiple properties, and the trust’s manager, trustee, and custodian operate under SEC’s regulatory oversight.

Why Register a REIT with SEC Nigeria?

1. Legality & Investor Confidence – Your scheme is lawful, supervised, and appears in SEC’s official ecosystem of approved schemes.

2. Fundraising at Scale – REITs pool capital efficiently to acquire and manage income-producing real assets.

3. Regulated Governance – With trustee oversight, custodian segregation, audited financials, and mandated disclosures, REITs offer structured investor protection.

4. Clarity on Ongoing Duties – SEC provides rules, checklists, and SLA timelines so applicants know expectations and timeframes.

Step-by-Step: How to Register a REIT in Nigeria (SEC Process)

Below is a practitioner-grade, ordered flow, mapped to SEC’s forms, checklists, rules, and operator pages.

Step 1: Structure Your REIT as a SEC-Regulated Collective Investment Scheme

• Choose scheme format: a Real Estate Investment Trust Scheme under SEC CIS rules (not a company raising equity as a developer). The REIT’s Trust Deed governs rights/obligations and appoints a registered Trustee to hold assets for unitholders.

• Ensure you have the core parties (all registered with SEC where applicable): Fund/Portfolio Manager, Trustee, Custodian, Registrar, Receiving Banker, Reporting Accountant/Auditor, Legal Counsel, Valuers (Estate Surveyors), etc. SEC publishes registrable functions and requirements/fees for these operators.

Step 2: Assemble the SEC-Required Documents (Use the Official REIT Checklist)

SEC provides a “Checklist for the Registration of Real Estate Investment Trust Scheme” detailing documents typically required, including:

• Completed Application Form (use SEC Form 6A1 for REITs).

• Draft Prospectus/Offer Document (if you intend to offer units to the public).

• Executed Draft Trust Deed and supplemental agreements (as needed).

• Letters of consent from all professionals (trustee, custodian, fund manager, solicitors, auditors, etc.).

• Certified corporate incorporation documents (for the manager and relevant parties) and details of directors/sponsored individuals where applicable.

• Sworn statements and applicable board/shareholder resolutions (as applicable).

• Valuation/feasibility and professional reports related to assets the REIT will hold.
  (These item types are spelled out on SEC’s REIT checklist and form.)

Step 3: Align Your Scheme Design with SEC REIT/CIS Rules

• Asset Concentration: Under SEC’s REIT amendments, no single asset should constitute more than 25% of the REIT’s gross asset value—a crucial portfolio design rule.

• CIS Unit Pricing & NAV: SEC rules establish that unit bid/offer prices in a CIS are based on NAV calculation methodologies set out in the rules/schedules. This affects valuation frequency, disclosures and offer pricing.

• Expense/Supervision Fees & Reporting: SEC updates CIS rules periodically (e.g., 2020 new rules and later 2024 amendments) impacting total expense ratios, supervision fees, reporting forms, etc. Ensure your literature, financial model, and disclosures reflect the latest CIS/REIT rule updates.

Step 4: Prepare and File Your Application via SEC’s Operator Area & E-Portal

• Application Path: In SEC’s Operators Area, navigate to Applications → Registration of IPOs (CIS, REIT, ETF, PE/VC, Infrastructure & Specialised Funds) for the latest package, and to Application Requirements, Fees & SLA for timelines. Payments go via the Remita page linked by SEC.

• Forms: Complete SEC-6A1 (REIT) and any other forms applicable to your mode of offering (e.g., initial offer, shelf program, supplemental deeds).

• Submission: Upload documents per the REIT Checklist, pay the relevant application/processing/registration fees, and track timelines according to SEC’s SLA publication.

Step 5: SEC Review, Queries, & Remedy

• SEC reviews your filing against ISA, SEC Rules, REIT/CIS rules, the checklist, and SLA benchmarks.

• Expect clarifications on Trust Deed provisions, asset mix, valuation bases, disclosure wording, fee computations, and sign-offs from professionals.

• Respond to queries within indicated timelines to keep within SEC’s SLA.

Step 6: SEC Approval of the REIT’s Securities (Units)

• On satisfaction, SEC registers the REIT’s securities (units) and issues the approval letter.

• The scheme now falls under SEC’s periodic reporting/return obligations for approved CIS, including financials and NAV reporting (see SEC’s returns templates and NAV sections).

Step 7 (Optional): Listing on a Securities Exchange

• Listing is optional and separate from SEC registration of the scheme’s securities. If you plan to list units on an exchange, this is a post-SEC step subject to the chosen exchange’s listing rules and fees. SEC’s competence is registration and regulation of the REIT as a CIS; exchanges regulate listing mechanics. (This guide keeps to SEC content only, per your requirement.)

SEC-Based Requirements.

Below, we consolidate what SEC explicitly asks for and what its rules impose on REIT design/operations. Always cross-check with the REIT Checklist, SEC-6A1, and current SEC Rules portal.

1) Parties & Governance (from SEC’s CIS/Operator ecosystem)

• Fund/Portfolio Manager – must be registered with SEC for the function.

• Trustee – holds scheme assets in trust for unitholders; must meet SEC’s code/registration standards.

• Custodian – safekeeping of assets (where applicable), also subject to SEC regulation.

• Registrar – maintains unitholder register.

• Receiving Banker – for offer proceeds.

• Estate Surveyors/Valuers, Solicitors, Auditors/Reporting Accountants – professional parties providing compulsory reports and attestations.
  SEC publishes registrable functions and their requirements/fees; your appointed firms must appear on SEC rolls.

2) Documents & Forms (from SEC’s REIT Checklist / SEC-6A1)

• Completed SEC-6A1 (Application for Registration of REIT Securities).

• REIT Trust Deed (and supplemental deeds, if any).

• Draft Prospectus/Offer Document (if undertaking an offer).

• Letters of consent (Trustee, Custodian, Registrar, Manager, etc.).

• Corporate documents (certified) for relevant parties and director/sponsored individual details.

• Professional reports (valuation, audits/IFRS financials, legal due diligence, etc.).

• Resolutions/Sworn statements as detailed by the checklist.
  Follow SEC’s official REIT checklist line-by-line.

3) Investment & Portfolio Rules (examples from SEC’s REIT/CIS rules)

• Asset concentration: no single property > 25% of GAV (per 2016 amendments).

• NAV-based pricing: CIS unit prices must reflect net asset value under SEC’s basis of computation.

• CIS governance/reporting: ongoing returns, NAV disclosures, and supervision fees apply as updated in SEC rules/amendments (e.g., 2020+ updates, 2024 supervision fee amendment references on the rules page).

Costs & Fees

SEC prescribes fees in Schedule I of the Rules (with updates posted to the Rules & Codes page). Additionally, the “Application requirements, fees & SLA” page provides a consolidated view of fees & timelines for applications (including REIT/CIS), and the Operators Area directs applicants to Remita for payments. Because SEC updates fees via new rules/amendments, always quote and attach the current SEC PDF from the Rules page in your filings and investor literature.

• Where to verify fees today

  • Rules & Codes hub (look for amendments to Schedule I – Registration Fees/Minimum Capital, Securities & Others and Annual Supervision Fees for CIS).

  • Application requirements, fees & SLA page (SEC’s central fee/timeline document).

  • Payments: SEC’s Remita link under the Operators Area for settling fees/fines.

Important: Your REIT budget must also include professional party fees (trustee, custodian, registrar, auditors, solicitors, valuers), printing/offer expenses, and exchange listing fees (if listing)—but those are outside SEC’s own fee schedule and will be governed by the respective providers/exchanges. SEC’s site also periodically issues circulars about market fees (e.g., bond transaction regulatory fees), which can affect downstream operating costs for REITs with fixed-income exposures.

Timelines (SEC SLA)

SEC publishes Application Approval Decision Timelines (SLA). For any REIT/CIS application, anchor your internal plan to this official SLA and then build contingency for clarifications and document remediation. Always attach the current SLA PDF as an appendix to internal project plans.

Process & Procedure (From SEC’s Own Pages)

The Operators Area flow is your master map:

1. Gather forms & checklists (REIT: SEC-6A1 + REIT checklist).

2. Assemble parties (registered operators for relevant functions) & execute the Trust Deed draft.

3. Compile prospectus/offer documents (if offering units publicly).

4. Pay fees via SEC’s payment channel (Remita) and lodge your application package in line with SEC’s “Registration of IPOs/CIS/REIT” instructions.

5. Engage during SEC review, respond to queries promptly within the SLA.

6. On approval, SEC registers the REIT securities. Maintain ongoing CIS returns/NAV reporting as directed by SEC (see returns templates and NAV portals).

Practical Tables You Can Reuse

Table 1 — REIT Registration: Core Documents (from SEC REIT Checklist/Forms)

Table 2 — Parties & Their SEC Status

Table 3 — Cost Map (Anchor to SEC’s Fee Schedules)

Tip: In your prospectus and board decks, cite the exact SEC PDF & date (from the Rules page) for any fee figure you use. This defends your numbers and shows compliance discipline.

Common Pitfalls (and SEC-Based Fixes)

1. Over-Concentrated Portfolio

   • SEC Rule: no single asset should exceed 25% of GAV (per 2016 amendments).

   • Fix: Acquire/commit assets to meet this diversification rule before filing.

2. Insufficient Professional Sign-offs

   • SEC Checklist expects consent letters and professional reports from approved parties (trustee, custodian, auditors, valuers, solicitors).

   • Fix: Lock in your full transaction team early; attach evidence per checklist.

3. NAV/Valuation Process Not Rule-Compliant

   • SEC CIS rules dictate NAV-based pricing and basis of computation.

   • Fix: Document valuation frequency, methods, and disclosures exactly as the rules specify.

4. Using Unregistered Operators

   • SEC requires registered operators for core functions.

   • Fix: Cross-check your parties on SEC’s registered operators lists and registrable functions page.

5. Timeline Slippage

   • SEC publishes SLA timelines; delays often come from incomplete filings or slow responses to SEC queries.

   • Fix: Build a document room that mirrors the REIT checklist and assign query owners with rapid turnaround SLAs.

End-to-End Workflow You Can Model Internally

1. Initiation: Decide on REIT perimeter and target asset mix conforming to SEC’s concentration limits; appoint SEC-registered trustee, custodian, registrar, and fund manager.

2. Document Production: Draft Trust Deed; compile SEC-6A1, prospectus, professional reports, and consent letters exactly per REIT checklist.

3. Internal Approvals: Obtain board/shareholder approvals (as relevant), and ensure corporate certificates/resolutions meet the checklist specs.

4. SEC Filing & Fees: Lodge via Operators Area path; pay fees via Remita; reference the current Schedule I/SLA.

5. Review & Clarifications: Coordinate prompt responses to SEC queries, updating drafts as required.

6. Registration & Ongoing Compliance: After registration, maintain CIS returns (financials/NAV), and pay annual supervision fees as updated.

Frequently Asked Questions (FAQs)

These are curated from the kinds of questions that surface in “People also ask” panels and asked by issuers/investors—answered here strictly with SEC Nigeria sources.

1) Who regulates REITs in Nigeria?

Answer: The Securities and Exchange Commission (SEC) Nigeria regulates REITs as part of its mandate over Collective Investment Schemes.

2) What exactly is a REIT under SEC Nigeria?

Answer: A REIT is a CIS that directly invests in income-generating real estate and related assets using pooled unit subscriptions from investors, managed and overseen under SEC rules.

3) What form do I need to register a REIT with SEC?

Answer: Use SEC Form 6A1 – Real Estate Investment Scheme (Application for Registration of REIT Securities).

4) Is there a checklist of documents for REIT registration?

Answer: Yes—the SEC “Checklist for the Registration of Real Estate Investment Trust Scheme” lists the documents and consents required (application form, trust deed, prospectus, consent letters, corporate docs, professional reports, etc.).

5) Are there investment concentration limits?

Answer: Yes—per SEC’s REIT rule amendments, no single asset should constitute more than 25% of the REIT’s gross asset value.

6) How are REIT units priced?

Answer: REIT units (as CIS units) are priced on NAV (Net Asset Value) basis, following SEC’s computation rules/schedules.

7) Where do I find the fees for registering a REIT?

Answer: See SEC’s Rules & Codes page for the current Schedule I (registration/supervision fees) and Application Requirements, Fees & SLA page for consolidated fee/timeline information. Payments are made via SEC’s Remita link in the Operators Area.

8) How long does SEC approval take?

Answer: SEC publishes Application Approval Decision Timelines (SLA)—use the current SLA PDF on SEC’s site as your master timing reference. Actual durations depend on completeness and speed of responses to SEC queries.

9) Do I need to list the REIT on a securities exchange after SEC registration?

Answer: Listing is optional and separate. SEC handles registration of the REIT’s securities; listing follows the rules of the chosen exchange.

10) Who should I appoint as Trustee/Custodian/Manager?

Answer: Parties must be SEC-registered for their functions. Check Registrable Functions – Requirements & Fees and SEC’s operator registers.

Misconceptions—Corrected (Using SEC Sources)

• “A REIT is just any property company.”
  ✘ Not under SEC Nigeria. A REIT is a CIS, with a Trust Deed, Trustee, Custodian, NAV-based pricing, and SEC-approved disclosures—not merely a property company raising equity.

• “I can allocate 60–70% of my REIT to one trophy asset.”
  ✘ Not per SEC’s REIT amendments: no single asset > 25% of GAV.

• “Any bank can be our receiving agent and any registrar will do.”
  ✘ Parties performing regulated capital-market functions must be registered with SEC and meet SEC requirements.

• “SEC fees are fixed forever.”
  ✘ SEC updates fees via New Rules/Sundry Amendments; always cite the current Schedule I and SLA document on SEC’s site.

Compliance After Registration (What SEC Will Continue to Expect)

• Periodic Returns & NAV Reporting for CIS, as set out in SEC returns templates and CIS reporting guidance.

• Adherence to CIS Investment/Valuation Rules, Trust Deed, and professional codes (trustees, fund managers). Keep an eye on new rules & amendments.

• Fee/Supervision Payments as updated from time to time.

Sample REIT Registration Project Plan (SEC-Aligned)

Phase 1 – Planning (Weeks 0–2)

• Decide asset strategy respecting 25% single-asset cap; shortlist properties; appoint SEC-registered core parties.

Phase 2 – Documentation (Weeks 2–6)

• Draft Trust Deed; compile SEC-6A1, prospectus, valuations, legal/audit reports, party consents, and corporate evidence per REIT checklist.

Phase 3 – Filing & Fees (Weeks 6–7)

• File via SEC’s Operators Area path (Registration of IPOs/CIS/REIT); settle fees via Remita; attach current Schedule I/SLA.

Phase 4 – SEC Review & Clarifications (Weeks 7–12, per SLA)

• Respond rapidly to SEC queries; maintain a version-controlled data room mapped to the checklist.

Phase 5 – Approval & Launch (Post-Approval)

• On SEC registration of the securities, proceed to unit allotment/offer completion; begin CIS returns/NAV routines. If listing, pursue exchange listing separately.