Nigeria Construction & Real Estate Sector 2026

A sector intelligence report on Nigeria's listed Construction & Real Estate universe — ₦877.5 billion in aggregate total income and ₦129.5 billion in combined post-tax profit across 12 NGX-listed entities in FY2025.

Executive summary

The Nigerian NGX Construction & Real Estate sector — as defined by this coverage universe — generated aggregate total income of ₦877.5 billion and combined post-tax profit of ₦129.5 billion across 12 listed entities in FY2025. The cohort spans four distinct sub-sectors: Infrastructure Debt and Real Estate Funds (AVAIF, NIDF, CNIF, MOFIREIF), Real Estate Investment Trusts (NREIT, SFSREIT, UHREIT, UPDCREIT), Construction & Engineering companies (Julius Berger, Ronchess, Haldane McCall), and one listed Property Developer (UPDC Plc).

The sector's headline performance is structurally bifurcated. Julius Berger Nigeria Plc alone contributes ₦759.9 billion — 86.6% of aggregate sector revenue — on the back of record government infrastructure contract execution. The remaining ₦117.6 billion of income is generated across eleven smaller entities, many of which are investment vehicles (funds and REITs) whose income includes significant non-cash fair value revaluation gains on investment properties. The macroeconomic backdrop in FY2025 was shaped by: the CBN maintaining its Monetary Policy Rate (MPR) at 27.50%, Naira stabilisation in the ₦1,580–1,650/USD range, elevated construction input costs driven by residual CPI of 34–38% YoY, and the government's launch of MOFIREIF as a direct intervention in Nigeria's 17–28 million unit housing deficit.

At the balance sheet level, the 12 entities collectively held ₦1772.7 billion in total assets — with Julius Berger alone accounting for ₦1023.0 billion (57.7% of sector assets) driven by its massive contract asset and working capital base. MOFIREIF, the largest fund by AUM, held ₦270.3 billion, almost entirely deployed into government securities, money market instruments, and nascent mortgage loans. Return on equity diverged sharply: UHREIT led at 65.2% — heavily inflated by a one-off ₦16.45 billion fair value revaluation gain — while NIDF delivered a more repeatable 18.0% and CNIF 20.1%. Haldane McCall's 3.7% ROE reflected its newly-listed, high-asset/low-revenue profile. Aggregate PAT-to-revenue margin for the sector was approximately 14.8%, though this metric carries limited comparability across investment vehicles and operating companies.

A Note on Scope: this report covers the sector companies listed on the Nigerian Exchange Limited (NGX) as at the reporting date — and should not be read as a comprehensive assessment of the sector as a whole. The NGX-listed universe represents a narrow slice of the sector, not accounting for private companies or informal sector dynamics. The findings, trends, and observations herein are therefore specific to the behaviour and performance of Nigeria's publicly listed companies and their immediate macro context, and should be contextualised accordingly when drawing broader conclusions about the Nigerian economy.

Key findings

1. FX Normalisation Effects Reduced Windfall Gains for Julius Berger

   Following the June 2023 float, the Naira traded in a narrower ₦1,580–1,650/USD band in 2025. Julius Berger realised ₦45.4bn in 'other net gains' (FX translation + claims settlements), materially boosting PAT, but these gains are non-recurring, indicating diminishing sector-wide FX tailwinds.

2. REITs Experienced a Fair Value Revaluation Wave Significantly Inflating PAT

   NREIT (₦17.3bn), UHREIT (₦16.45bn) and UPDCREIT (₦2.1bn net) recognised combined non-cash FV gains of ₦35.9bn on investment properties, significantly inflating reported PAT; for recurring income analysis, distributable earnings per unit are the correct metric.

3. MOFIREIF Launched as a Major Government Housing Fund Intervention

   March 2025 saw the launch of Nigeria's largest housing finance vehicle MOFIREIF, channelling ₦250bn of government-backed equity into affordable mortgage origination. In its maiden 10-month period, it grew total assets to ₦270.3bn and originated ₦68.2bn in mortgages via 18 EFI partners.

4. New NGX Listings Deepened Sector Coverage and Net Assets

   Two new entities listed on the NGX in 2025: NREIT (31 December 2025; ₦182.9bn Group net assets) and Haldane McCall Plc (20 November 2025; ₦3.84/share IPO). Combined, they add ₦218.8bn in net assets to the public market.

5. PAT Margins Showed Extreme Divergence Across Entities

   PAT margins ranged from 93.7% (CNIF — investment fund, near-all income flows to profit) to -197.4% (RCHESS — gross loss; costs exceeded revenue). Julius Berger's 4.0% margin reflects the thin-margin, high-volume nature of government infrastructure contracting.

6. UPDCREIT Underwent Manager Transition and Trades at a Significant Discount to NAV

   Stanbic IBTC Asset Management stepped down as UPDCREIT's fund manager; SFS Capital was appointed as successor, which now manages three listed REITs (SFS REIT, UH REIT, UPDCREIT), concentrating REIT governance risk. The unit trades at ₦6.90 vs NAV ₦13.30 — a 48% discount.

SECTOR PERFORMANCE OVERVIEW: FY2025

The 12 covered entities are segmented into three revenue/income tiers. Given that Julius Berger is the sole operating construction contractor of significant scale, Tier 1 is a single-entity grouping; the remaining entities are funds, REITs, and smaller companies.

Tier 1: Julius Berger Nigeria Plc (Revenue > ₦50 billion)

Julius Berger Nigeria Plc (JBERGER) is the unambiguous anchor of the NGX Construction & Real Estate sector, generating ₦759.9 billion in FY2025 group revenue — a record high representing 86.6% of the 12-entity cohort's aggregate income. Julius Berger's revenue is driven almost entirely by government infrastructure contracting: highways, bridges, airports, and large public buildings. FY2025 saw gross margin improve to 15.8% from 12.6% in the prior year, with PAT surging 94.5% to ₦30.2 billion — the latter aided by ₦45.4 billion in other net gains (FX translation and claims settlements). The company's group balance sheet crossed ₦1 trillion in total assets (₦1,023.0 billion), with total equity of ₦288.2 billion.

Tier 2: Mid-Cap Entities (Income ₦5bn – ₦50bn)

Five entities occupy the mid-cap tier: MOFIREIF (₦36.5bn), NREIT (₦27.6bn), NIDF (₦25.8bn), UPDC Plc (₦12.9bn), and UPDCREIT (₦5.1bn). MOFIREIF's ₦36.5 billion income covers only 10 months of operations (its first reporting period); NREIT's ₦27.6 billion includes a ₦17.3 billion non-cash fair value gain on investment properties. NIDF's ₦25.8 billion represents interest and fee income on a ₦97.25 billion infrastructure loan portfolio — the most operationally predictable income stream in the mid-cap tier. UPDC's ₦12.9 billion reflects property delivery sales (Brompton City) and surging money market income. UPDCREIT's ₦5.1 billion consists of rental income, interest income, and a net FV gain of ₦2.1 billion.

Tier 3: Small-Cap Entities (Income < ₦5 billion)

Seven entities fall in the small-cap tier: RCHESS (₦3.0bn), HMCALL (₦2.3bn), CNIF (₦2.1bn), UHREIT (₦1.4bn investment income, excluding ₦16.45bn FV gain), SFSREIT (₦0.72bn), and AVAIF (₦0.17bn). RCHESS is the most distressed — revenue fell 54.9% YoY and direct costs exceeded revenue, producing a gross loss. HMCALL is newly listed (November 2025) with an unusually high gross margin (79.3%) reflecting a management-contract-heavy business model. CNIF covers only an 8-month reporting period. UHREIT's investment income is modest (₦1.4bn) but reported PAT is ₦18.2bn due to the one-off FV revaluation.

Key Performance Drivers: What Separated Best from Worst?

The macro environment in FY2025 broadly favoured entities with yield-generating financial assets (infrastructure debt funds, REITs with interest income, UPDC's money market position) and large-scale government contractors (Julius Berger). Construction SMEs (RCHESS, HMCALL) faced the most adverse operating conditions — elevated input costs, high debt servicing, and limited access to new government contracts at meaningful scale.

SECTOR STRUCTURE & COVERAGE UNIVERSE

The NGX classifies twelve entities under its Construction & Real Estate sector definition for the purposes of this report. The cohort is heterogeneous — it spans infrastructure debt funds, open- and close-ended real estate investment trusts, an integrated construction and engineering conglomerate, smaller construction companies, and one listed property developer. What unifies them is exposure to Nigeria's built environment: the financing, development, construction, or management of physical infrastructure and real estate assets. All twelve entities are domiciled in Nigeria and file financial statements with the Nigerian Exchange Group (NGX).

Competitive Structure and Market Dynamics

The sector is not a single competitive market — it is better understood as four distinct verticals that share an exposure to Nigeria's built environment. In the Infrastructure Funds vertical, MOFIREIF (government-backed, ₦252.5bn NAV) and NIDF (market-led, ₦130.6bn NAV) are structurally non-competing: one targets affordable mortgage lending via financial institutions; the other targets corporate infrastructure project finance. Competition within verticals is limited: each fund or REIT occupies a differentiated niche by mandate, geography, or compliance framework (e.g. NREIT's Shariah certification is a structural moat). In the construction segment, Julius Berger's dominance is near-absolute at the large-scale government contract level — RCHESS and HMCALL compete at fundamentally different project sizes and types, and face entirely different risk profiles.

MACRO ENVIRONMENT: WHAT SHAPED SECTOR PERFORMANCE IN FY2025

Five overarching macro factors defined the operating environment for Nigeria's NGX Construction & Real Estate sector in FY2025: (1) CBN MPR maintenance at 27.50%, sustaining elevated borrowing costs but boosting money market yields for fund managers; (2) Naira exchange rate stabilisation in the ₦1,580–1,650/USD band following the 2023 float, reducing FX windfall gains while containing import cost escalation; (3) Consumer price inflation averaging 34–38% YoY, sustaining cost pressures on construction materials, labour, and services; (4) the federal government's continued prioritisation of infrastructure capital expenditure, providing contract flow for Julius Berger; and (5) the launch of MOFIREIF as a policy-driven housing finance intervention, channelling ₦250 billion of sovereign-backed equity into the affordable housing segment.

AVA Infrastructure Fund (AVAIF)

Revenue of ₦170.8 million reflects investment income from two senior project finance loans (46.4% of portfolio) and money market instruments (53.6%), accumulated over Q4 2025. AVAIF files only quarterly unaudited investor reports — no audited annual AFS is available. The fund was established 27 March 2024 and is in its early portfolio-building phase.

Nigeria Infrastructure Debt Fund (NIDF)

Total income of ₦25.8 billion reflects interest and fee income on a ₦97.25 billion infrastructure loan portfolio spanning 20 borrowers across telecom towers, gas distribution, renewable energy, digital infrastructure, and state IPP projects. NIDF is Nigeria's largest infrastructure debt fund by AUM. All 20 borrowers met their obligations on schedule during FY2025.

Coronation Infrastructure Fund (CNIF)

Total income of ₦2.1 billion covers only an 8-month period (May–December 2025) — CNIF commenced operations on 29 May 2024 (Series 1: 8.7 million units allocated; 194 investors). The fund generated ₦1.95 billion PAT in this period vs ₦705.7 million in the comparable prior 8-month period, representing significant growth as the loan book deployed.

MOFI Real Estate Investment Fund (MOFIREIF)

Total income of ₦36.5 billion covers a maiden 10-month period (March–December 2025). MOFIREIF was launched by ARM Investment Managers on behalf of the Ministry of Finance Incorporated (MOFI) — representing the largest government-backed housing finance intervention in Nigeria's recent history. ₦250 billion was raised in equity contributions from unit holders.

Nigeria Real Estate Investment Trust (NREIT)

Group total income of ₦27.6 billion includes: rental income (~₦5.9 billion), fair value gain on investment properties ₦17.3 billion (non-cash, IAS 40), and other income ₦4.4 billion. NREIT is Nigeria's only Shariah-compliant listed REIT, managed by Chapel Hill Denham. It listed on the NGX on 31 December 2025, marking its first public market debut. NREIT operates via a Group structure that consolidates a property-owning subsidiary.

SFS Real Estate Investment Trust (SFSREIT)

Total income of ₦716.2 million consists of rental income and interest income from 8 residential properties in Lagos (Victory Park, Sapphire Gardens, Bourdillon Court, Milverton, Cromwell, Maben, Victoria Crest, Northern Foreshore). Critically, SFS REIT uses the cost model under IAS 40 — investment properties are carried at cost, not fair value — making reported assets and NAV significantly lower than economic reality.

UH Real Estate Investment Trust (UHREIT)

UH REIT conducted its first full fair-value revaluation of all investment properties in FY2025, engaging UBOSI ELEH & Co. The revaluation generated a ₦16.45 billion FV gain — the largest single non-cash item in the entire 12-entity cohort. Total investment income (rental + interest) was ₦1.39 billion. Total comprehensive income was ₦18.22 billion (EPS ₦96.84/unit). CRITICAL: 90.3% of reported PAT is this one-off non-cash revaluation.

UPDC Real Estate Investment Trust (UPDCREIT)

Total revenue of ₦5.12 billion: rental income ₦1.74 billion (+21.0% YoY, 97% occupancy across 6 properties); interest income ₦1.27 billion (bank deposits + bonds at elevated Naira rates); net FV gain ₦2.10 billion (VMP I +₦1.84bn, VMP II +₦0.89bn, Kingsway Marina -₦0.64bn). UPDCREIT is Nigeria's oldest listed REIT (established 6 June 2013).

Julius Berger Nigeria Plc (JBERGER)

Group revenue of ₦759.9 billion (+34.1% YoY from ₦566.7 billion) — a record high, driven by large-scale government infrastructure contracting: highways, bridges, airports, and public buildings. Company-only revenue grew even faster: ₦687.5 billion (+39.5% YoY). Julius Berger has no peer at this revenue scale in the Nigerian construction sector.

Ronchess Global Resources Plc (RCHESS)

Revenue of ₦3.0 billion fell 54.9% from ₦6.7 billion in FY2024 — a severe contraction signalling loss of contract pipeline. Direct costs of ₦4.6 billion exceeded revenue, generating a gross loss of ₦1.6 billion. This is the most acute sign of operational distress: for every naira of work done, RCHESS spent more than ₦1.53 on direct costs. Net loss for the year: ₦5.98 billion.

Haldane McCall Plc (HMCALL)

Revenue of ₦2.28 billion fell 37.5% from ₦3.64 billion in FY2024. Haldane McCall listed on NGX on 20 November 2025 at ₦3.84/share — 3,122,000,000 shares at ₦0.50 par. A 'Deposit for Shares' of ₦5.0 billion sits in equity, representing pre-IPO capital raised before listing. Despite the revenue decline, gross profit was ₦1.81 billion at a remarkable 79.3% gross margin.

UPDC Plc (UPDC)

Group revenue of ₦12.9 billion (+10.4% YoY from ₦11.8 billion) was driven by property delivery revenues at Grupo Atlanta Nigeria Limited (51%-owned subsidiary) — the developer of Brompton City, a flagship mixed-use residential and commercial project in Lagos. UPDC Plc (standalone) recorded a ₦308 million loss at company level; all Group profitability originates from Grupo Atlanta. UPDC is 51% owned by Custodian Investment Plc.

COMPARATIVE FINANCIAL ANALYSIS

The most striking cross-company finding in this cohort is the extreme heterogeneity of PAT margins — ranging from 93.7% (CNIF — a debt fund where near-all income converts to profit) to -197.4% (RCHESS — gross loss position). This is not a reflection of operational efficiency within a single business model; it reflects the fundamental structural difference between investment vehicles (funds, REITs) and operating companies (construction contractors, property developers). Aggregate sector statistics carry limited analytical weight given this heterogeneity.

CAPITAL MARKETS ACTIVITY IN FY2025

FY2025 was an active year for the NGX Construction & Real Estate sector in capital markets terms: two new listings brought fresh investment vehicles to market, one fund completed a material secondary fundraise, a major fund was launched by government mandate, a fund manager transition was announced post-period, and a post-period legal action placed a significant share block under court restriction. No delistings occurred.

Analytical Observations on Capital Markets Activity

The dominant strategic logic across FY2025 capital markets activity is access to long-term institutional capital for infrastructure and real estate investment. Both new listings (NREIT and HMCALL) and the major fundraises (NIDF Series 11, NREIT ₦107.6bn, MOFIREIF ₦250bn) were demand-driven rather than distress-driven — signalling confidence in the sector among institutional investors even in a high-rate environment. The sector did not rely on equity capital raising at the company level (construction companies); Julius Berger and UPDC generated cash internally and from contract receivables. The HMCALL IPO is the exception, but it was an access-to-market listing rather than a capital-distress raise.

Corporate Governance Observations

The infrastructure funds and REITs in this cohort are regulated by the Securities & Exchange Commission (SEC) of Nigeria and operate under Trust Deeds, with independent Trustees overseeing the interests of unit holders. At the top of the governance structure, SEC oversight, NGX listing obligations, and the fiduciary duties of trustees provide a baseline of protection. All entities are compliant with NGX Corporate Governance Code listing requirements as far as can be determined from public filings; no material governance violations were disclosed in the period.

FORWARD OUTLOOK & KEY INDICATORS FOR 2026

The following key events, catalysts, and macro indicators will be central to monitoring NGX Construction & Real Estate sector performance in FY2026. Sources: SysIN Macro Monitor framework, individual company filings, CBN communications, and SEC regulatory updates.

Frequently asked questions

What was the total income and profit for the Nigerian NGX Construction & Real Estate sector in FY2025?

The Nigerian NGX Construction & Real Estate sector generated an aggregate total income of ₦877.5 billion and combined post-tax profit of ₦129.5 billion across 12 listed entities in FY2025.

Which company dominated the sector's revenue in FY2025?

Julius Berger Nigeria Plc alone contributed ₦759.9 billion, accounting for 86.6% of the aggregate sector revenue in FY2025, primarily driven by government infrastructure contracts.

What were the key macroeconomic factors that influenced the sector's performance in FY2025?

The macroeconomic backdrop in FY2025 was shaped by: the CBN maintaining its Monetary Policy Rate (MPR) at 27.50%, Naira stabilisation in the ₦1,580–1,650/USD range, elevated construction input costs driven by residual CPI of 34–38% YoY, and the government's launch of MOFIREIF as a direct intervention in Nigeria's housing deficit.

What significant capital markets activities occurred in the sector in FY2025?

FY2025 saw two new listings (NREIT and Haldane McCall Plc), a material secondary fundraise by NIDF, the launch of MOFIREIF by government mandate, and a fund manager transition for UPDCREIT, with a post-period legal action placing a significant share block of Julius Berger under court restriction.

What is the primary concern regarding corporate governance in the REIT sub-sector?

The most significant governance concentration risk in the REIT sub-sector is SFS Capital managing three listed REITs (SFS REIT, UH REIT, UPDCREIT as of 2026), which creates potential conflicts of interest regarding property acquisition, valuation mandates, and deal allocation.