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Tuesday, 12 July 2011 10:32

The Securities and Exchange Commission (SEC) of Nigeria released the first set of guidelines for Real Estate Investment Trusts in Nigeria (N-REITs) per the Investment and Securities Act (ISA) 2007. The Central Bank of Nigeria (CBN) and the Debt Management Office (DMO) declared Asset Backed Securities (ABS) as exempt from taxes for 10 years. N-REITs are Asset Backed Securities. REITs in Nigeria can be either closed-end or open-end. They must have at least 100 unit holders and at least 75% of a closed-end REIT's assets must be in real estate. At least 70% of an open-end REIT's assets must be in real estate or real estate-related, and none of their assets may be outside Nigeria. At least 75% of their income must come from rents, mortgages or sale of property. At least 90% of net income must be distributed to unit holders. Real Estate Investment Trusts in Nigeria are regulated by the SEC and the Federal Inland Revenue Service (FIRS).