REITs for First Timers in Nigeria: A Legit Source of Income Anyone Can Start

Many Nigerians are familiar with land flipping and owning property as ways to earn from real estate. But there’s a lesser-known, legit source of real estate income that doesn’t require millions upfront or managing tenants.

It’s called a REIT (Real Estate Investment Trust).

This article will introduce you to REITs, why they’re worth your attention, and how you can start, even with small amounts.

What is a REIT?

REIT stands for Real Estate Investment Trust. It’s a company that owns, operates, or finances income-generating real estate. Think of malls, hospitals, office buildings, and warehouses.

When you invest in a REIT, you're not buying a building, you’re buying a share of a company that owns those buildings. In return, you earn a share of the income, which is usually paid out as dividends.

It’s like earning rent money without being a landlord.

This is Not a Get-Rich-Quick Scheme

Let’s be clear: REITs are not Ponzi schemes or money doublers. This is not something that gives you 200% ROI in a week.

REITs are regulated, income-generating assets tied to real property. They pay regular dividends, and your capital may grow over time, but it takes patience.

In fact, by law in many countries, REITs must pay at least 90% of their taxable income as dividends to investors [1].

So you won’t get rich overnight, but with time, reinvested dividends, and consistent investing, your money works harder. Just like any serious investment.

REITs Are for Everyone! Yes, Even You

You don’t need ₦10 million to invest in real estate anymore. Apps like RiseVest let you start with as little as ₦5,000, giving you exposure to U.S. real estate-backed assets.

There are also local REITs listed on the Nigerian Stock Exchange (NSX), such as:

You can buy these through any stockbroker in Nigeria. However, the liquidity and returns can be slower compared to foreign REITs.

Sample ROI Screenshot

This shows how investing even small amounts can generate returns. Slowly but surely.

Recommended Apps to Get Started

Here are beginner-friendly platforms:

RiseVest – Invest in U.S. real estate (and other asset classes).
Chaka, Trove, or Bamboo – Allow you to buy foreign REIT ETFs like VNQ (Vanguard Real Estate ETF).

Books to Learn More

Want to go deeper? These books offer solid foundations:

“REITs For Dummies (For Dummies (Business & Personal Finance))” by Brad Thomas – A tour of REIT property sectors and the different ways you can invest in REITs.
“The Complete Guide to Investing in REITS” by Mark Gordon – Understand How to Earn High Rates of Returns Safely.
“Investing in REITs: Real Estate Investment Trusts” by Ralph L. Block – Great for understanding comprehensive history of the REIT industry and how REITs compare with other competitive investments
“NIGERIAN STOCKS 101: Ultimate Guide To Investing in the NGX” by Iyeke Feji (Your Money Guy)

Final Thoughts

REITs are not magic, but they are real and powerful. They open the door for everyday people like you and me to start earning from real estate without ever owning a house or dealing with tenants.

It’s simple:

Start small.
Be consistent.
Think long-term.

Nigeria is full of people chasing quick returns. Be different. Invest smart, stay informed, and let your money work with time.