PURPOSE – The Nigeria REIT market has been rated low in term of dividend return amidst the industry variables of Size, NAV, FFO, Leverage, Advisor Puzzle among others. Other Scholars have examined the influence of macroeconomic variables (GDP, Inflation, etc.). This study examines the effects of these macroeconomic variables and other specific factors on Nigeria REIT’s dividend return.

DESIGN/METHODOLOGY – The study is a quantitative econometric study. The data were collected from various government institutions CBN, NBS, NSE and annual Reports of the Skye Shelter REIT. The data covers the period of existence of REIT in Nigeria (2008-2016). The study utilized multiple regression and correlation analyses to establish the influence and relationship of the macroeconomics variables on REIT return.

FINDINGS – The correlation study shows a significant relationship between REIT dividend to oil price (-ve) and exchange rate (+ve). The regression analysis confirmed the significant effect of oil prices of P=0.015 (P<0.5). The entire six variables accounted for 95.8% effect on dividend return having R-Square value of 0.958. The F-Value is 31.37 with a significant value of P = 0.031 (P<0.5)

PRACTICAL IMPLICATIONS – The study contributes to the REIT literature with its consideration of some country specific economic variables (government spending, crude oil price and exchange rate). The study identified the Nigeria economy to be a single commodity (crude oil) as well as import dependent (of consumable commodities), which significantly impacts on the country’s currency exchange rate. It thus implies that the economic diversification effort of the current government from mono product situation to multi product economy be successful and sustainable to rejuvenate the Nigeria economy.

ORIGINALITY/VALUE OF WORK – The paper in addition to being the first to examine macroeconomic variables and the Nigeria REIT market, has also added country specific variables of government spending, crude oil price and exchange rate to reflect the peculiar volatility of the Nigeria market.