Veritasi Homes & Properties Plc has completed a ₦50 billion non-interest commercial paper programme, giving the real estate developer another avenue to raise short-term funding from Nigeria’s capital market.

The programme was formally executed in Lagos on August 6, 2026, following the completion of the required regulatory and programme processes. It provides Veritasi with a structured platform for raising funds through eligible commercial-paper issuances.

Expanding access to capital

Commercial paper allows companies to raise short-term funds from investors without issuing equity. For real estate developers, the instrument can provide an alternative to conventional bank borrowing for working capital and other approved corporate needs.

The new ₦50 billion programme represents a significant expansion from Veritasi’s previous ₦20 billion Commercial Paper Programme.

Under the earlier programme, the company raised up to ₦15 billion and subsequently redeemed its matured obligations. Veritasi also registered another ₦20 billion programme in 2025, under which it issued Series 1 and Series 2 commercial papers.

Previous obligations redeemed

Veritasi has also demonstrated recent activity in the commercial-paper market.

According to the report, the company redeemed approximately ₦6.13 billion owed to investors on April 17, 2026, under an earlier issuance.

Funds raised through previous programmes supported developments including Camberwall Advantage Series and Tinuola Towers.

Funding pressure remains a challenge for developers

The new financing programme comes at a time when Nigerian property developers are dealing with high construction costs and expensive conventional financing.

The rising cost of building materials, labour, land and infrastructure has increased the amount of capital required to deliver housing projects.

For developers, access to alternative sources of funding can therefore help reduce dependence on bank lending and provide additional flexibility for managing project-related expenses.

However, commercial paper is a short-term financing instrument, meaning companies must carefully manage their cash flows and repayment obligations when individual issuances mature.

₦50bn programme does not mean ₦50bn raised

An important distinction should be made between the ₦50 billion programme size and the amount of money actually raised.

The programme establishes a maximum framework of ₦50 billion under which eligible commercial-paper issuances can be made. It does not mean Veritasi has received ₦50 billion in one transaction.

The actual amount raised will depend on the individual issuances conducted under the programme.

This distinction matters when assessing the potential impact on housing supply. The programme could provide significant additional funding capacity, but its eventual contribution to construction will depend on how much the company raises and how the proceeds are deployed.

Potential impact on housing supply

Greater access to capital could help Veritasi finance construction activities, acquire development inputs and maintain delivery across its housing projects.

The wider significance for Nigeria’s housing market is whether capital-market financing can help private developers overcome some of the funding constraints that limit housing supply.

But financing alone will not solve Nigeria’s affordability problem.

High land and construction costs, infrastructure requirements and limited access to affordable mortgages continue to influence the final price of homes.

A growing role for capital-market financing

Veritasi’s latest programme also highlights the growing role of Nigeria’s capital market in financing real estate development.

Diversifying funding sources can give developers alternatives to traditional bank loans, particularly when interest rates make conventional borrowing expensive.

For the housing sector, the bigger question is whether these financing mechanisms can translate into more homes being delivered at prices that ordinary Nigerians can afford.

Veritasi’s ₦50 billion programme therefore represents an expansion of its potential financing capacity. Its real impact will ultimately be measured by the capital raised under the programme and the housing and other developments that follow.

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FirstCap Limited, a leading investment banking and capital markets advisory firm, has successfully structured and executed a ₦25 billion commercial paper (CP) programme for Lekki Gardens Estate Limited marking a major funding breakthrough for one of Nigeria’s biggest residential real-estate developers.

The programme, executed under First HoldCo Plc, positions FirstCap as Joint Issuing House and Placing Agent, enabling Lekki Gardens to access a consistent stream of short-term financing to support construction timelines, strengthen operations, and fast-track project completion.

According to a statement from FirstCap, the transaction reflects the company’s expanding influence in Nigeria’s debt-capital-markets ecosystem, where it continues to diversify issuer options, deepen liquidity, and expand fixed-income investment choices for institutional investors.

Future issuances under the CP programme are expected to fund Lekki Gardens’ working-capital requirements and general corporate needs, boosting the company’s capacity to scale ongoing real-estate developments across Lagos and other major cities.

Speaking on the achievement, FirstCap’s Managing Director, Ukandu Ukandu, said the deal showcases the firm’s commitment to delivering capital solutions that support long-term economic growth.

“Our work with Lekki Gardens demonstrates our ability to mobilise institutional capital, navigate regulatory frameworks, and structure financing that accelerates Nigeria’s development goals.

As demand for infrastructure continues to rise, we are focused on bridging the funding gap through innovative, investor-friendly instruments,” Ukandu stated.

With more than 20 years of transactional expertise across multiple sectors, FirstCap remains a major player in capital raising, mergers and acquisitions, and financial advisory, supporting businesses seeking scalable and efficient financing models.

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Nigeria’s new Tax Act will take effect come January 2026, ushering in one of the most significant overhauls of the nation’s fiscal framework in decades. Designed to align with global standards, the law is expected to reshape the real estate and housing finance landscape but experts warn its success hinges on effective implementation, transparency, and consistent engagement.

A New Era for Real Estate and Property Investment

The Nigeria Tax Act 2025 introduces tougher anti-evasion measures, including a “top-up tax” on multinational corporations, stricter Controlled Foreign Company (CFC) rules, and more comprehensive definitions of taxable capital gains. Though primarily targeting foreign entities, these provisions will reverberate through Nigeria’s property sector, where many large projects rely on offshore financing through Special Purpose Vehicles (SPVs).

Developers could face higher taxes and tighter reporting requirements under the Federal Inland Revenue Service (FIRS), while property disposals will now attract Capital Gains Tax (CGT) on actual profits closing long-standing loopholes that allowed tax avoidance through share transfers instead of asset sales.

Stamp Duties and Luxury Property Tax

One major flashpoint is the adjustment of stamp duties on property leases above ₦10 million, which experts say could further inflate housing costs in cities like Lagos and Abuja. Similarly, a proposed 1.5% annual luxury property tax on high-end homes in areas such as Ikoyi and Maitama aims to increase revenue from wealthy homeowners but may distort the upper property market.

Impact on Developers and Mortgage Institutions

Developers and lenders are bracing for higher compliance costs and thinner margins. While the reforms may initially raise borrowing costs, experts believe long-term gains are possible if revenues are reinvested into housing infrastructure and mortgage credit.

The Real Estate Investment Trust (REIT) segment could also see changes. Though currently enjoying tax exemptions under FIRS rules, inconsistent interpretation of the new provisions could unsettle investors, highlighting the need for regulatory clarity.

Opportunities Amid Uncertainty

According to Ayo Ibaru, CEO of Northcourt, exempting residential properties from VAT and expanding recoverable input VAT to cover construction services could ease cost pressures. He urged the government to complement reforms with tax incentives for green and affordable housing.

Dr. Roland Igbinoba, President of Proptech Nigeria, described the law as transformative but warned of short-term pain. “CGT has moved from 10% to 30%. Developers must plan carefully, but over time, the law will bring greater transparency and predictability,” he said.

Estate valuer Olufemi Oyedele called for targeted reliefs to protect affordability. “Authorities should tax empty houses and channel proceeds into mortgage support for low- and middle-income buyers,” he advised.

Balancing Reform and Reality

Experts agree that implementation will make or break the reform. Without transparent processes, data-driven valuation systems, and active engagement between government and stakeholders, the benefits could be lost to confusion and overregulation.

The new tax regime marks a critical juncture for Nigeria’s real estate industry, one that could either unlock sustainable financing for affordable housing or deepen existing market imbalances, depending on how policymakers strike the balance.

By: CHINEDUM UWAEGBULAM

Source: Guardian

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