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Fuel Price Hike: How Fuel Price Hike Drives Nigerian Real Estate
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By Dennis Isong
In recent times, Nigeria has witnessed fluctuations in fuel prices, sparking debates and concerns across various sectors of the economy.
While the impact of rising fuel costs is generally seen as negative, there is a unique silver lining for the real estate industry. Surprisingly, the fuel price hike can favor real estate investment in Nigeria in several ways.
This article explores the connections between fuel price increases and real estate investment opportunities, shedding light on the potential benefits for savvy investors.
● Diversification of Investment Portfolio
Real estate has always been considered a stable and relatively low-risk investment option. As fuel prices rise, other forms of investments, such as transportation and manufacturing, might experience slowdowns.
This prompts investors to diversify their portfolios and turn their attention to real estate.
The perceived stability and potential for long-term gains in the property market become particularly attractive during times of economic uncertainty.
With the cost of commuting becoming a concern, people are drawn to live in areas where they can work, shop, and unwind without extensive travel
● Shift in Investment Focus
Higher fuel prices often lead to a shift in preferences among consumers and businesses. As transportation costs rise, there is a growing demand for properties located closer to city centers and commercial hubs. This demand shift can drive up property values in such areas, making real estate investment in these prime locations more lucrative.
● Urbanization and Rental Demand
Urbanization is a growing trend in Nigeria, with more people moving to cities in search of better job opportunities and improved lifestyles.
The fuel price hike can accelerate this trend as commuting becomes costlier. Consequently, the demand for rental properties in urban centers is likely to rise, offering real estate investors a steady stream of rental income.
● Infrastructure Development
Governments often respond to fuel price increases by redirecting funds towards infrastructure development projects, such as road expansions and public transportation enhancements.
These improvements can increase the overall desirability of certain neighborhoods, leading to increased property values. Savvy investors who identify these emerging trends can capitalize on the potential appreciation of property prices in areas targeted for infrastructure upgrades.
● Long-Term Investment Potential
Real estate investment is inherently a long-term endeavor. While fuel prices may experience fluctuations over the short term, the property market tends to appreciate over time.
Investors who can weather short-term economic challenges brought about by fuel price hikes are likely to benefit from the long-term value appreciation of their real estate assets.
● Inflation Hedge
Rising fuel prices often coincide with inflationary pressures. Real estate has historically served as a hedge against inflation, as property values and rental incomes tend to rise with the cost of living. This makes real estate an attractive option for investors seeking to preserve and grow their wealth during periods of economic uncertainty.
● Demand for Mixed-Use Developments
Rising fuel prices can lead to a growing desire for convenience and efficiency. This paves the way for the emergence of mixed-use developments that combine residential, commercial, and recreational spaces within the same vicinity.
With the cost of commuting becoming a concern, people are drawn to live in areas where they can work, shop, and unwind without extensive travel.
Real estate developers who recognize this trend can capitalize on the demand for mixed-use properties, creating vibrant and self-contained communities that cater to various needs.
● Foreign Investment and Economic Diversification
Higher fuel prices can stimulate foreign investment in Nigeria’s real estate sector. As global investors seek alternative avenues for capital allocation, a well-regulated and promising real estate market can catch their attention.
Increased foreign investment not only injects capital into the local economy but also contributes to economic diversification.
This, in turn, can create jobs, stimulate economic growth, and lead to positive ripple effects across various industries.
● Value-Add Opportunities
Real estate investors can take advantage of fuel price hikes to identify value-add opportunities within the market.
Properties that were previously overlooked due to their location or condition might become more attractive when transportation costs rise.
By strategically renovating, repositioning, or repurposing such properties, investors can unlock their true potential and capitalize on the changing market dynamics.
● Government Policy and Support
Governments often respond to fuel price hikes by introducing policies that promote economic stability. In some cases, these policies can include incentives for real estate development and investment.
Such incentives could include tax breaks, subsidies, or streamlined permitting processes. Real estate investors who stay informed about government initiatives and take advantage of available support mechanisms can position themselves for success in a changing economic landscape.
● Alternative Investment Vehicles
As fuel prices increase, individuals and institutions may seek alternatives to traditional investments that are directly affected by these fluctuations.
Real estate investment trusts (REITs), crowdfunding platforms, and real estate-focused mutual funds provide avenues for investors to participate in the property market without owning physical properties. These alternative investment vehicles can offer diversification and liquidity while tapping into the potential benefits of real estate during periods of fuel price volatility.
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Here’s When To Watch Lunar Crescent Across Nigeria on Friday, February 28, according to NASRDA
The last cities to experience the lunar crescent, he said, would be Lagos and Abeokuta between the hours of 6:59 pm to 7:30 pm.
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The National Space Research and Development Agency (NASRDA) said that Nigeria would likely witness its first astronomical lunar crescent on Friday evenings, February 28.
The Director of Media and Corporate Communications of NASRDA, Dr. Felix Ale, disclosed this in a statement, saying that the lunar crescent had been calculated to occur at 1:45 A.M. West African Time (WAT).
He said that the predicted time of 1:45 A.M time, also known as the Crescent Zero hour, would be when the crescent could be seen under perfect atmospheric conditions with the aid of optical instruments like binoculars or telescopes.
“The crescent will become visible to the naked eye in the evening of Friday, February 28, 2025, between 6:17 PM and 7:35 PM across different locations in Nigeria.
“Maiduguri will be the first city to witness the young lunar crescent from 6:17 PM to 6:48 PM, followed by Yola, Adamawa State, from 6:21 PM to 6:51 PM.
“Damaturu, Yobe, will follow from 6:22 PM to 6:53 PM, Kano, Kastina, Jos and Kaduna will experience the first lunar crescent between 6:38 pm and 7:12 pm.
“The sunset and moon set will occur between 6:35 pm and 7:12 pm, 6:38 pm and 7:15 pm, 6:35 pm and 7:11 pm, 6:40 pm and 7:17 pm respectively.
“Enugu will experience the lunar crescent between 6:42 pm and 7:32 pm with sunset and moonset at about 6:42 pm and 7:18 pm,’’ he said.
He predicted that in the FCT, the first lunar crescent would appear between 6:44 pm and 7:15 pm, with sunset and moonset at about 6:44 pm and 7:20 pm.
The last cities to experience the lunar crescent, he said, would be Lagos and Abeokuta between the hours of 6:59 pm to 7:30 pm.
Ale said that other cities across the federation will experience the lunar crescent at different times within the estimated visibility window of 6:17 pm and 7:35 pm on the same day.
He said “For a clear sighting of the first lunar crescent, observers are to use optical aids where necessary, and observe under clear atmospheric conditions.
“Observers are to position themselves in locations with an unobstructed view of the western horizon after sunset.
“He added that the scientific report provided precise predictions on the lunar crescent across locations of the country.
According to him, the report ensured accuracy for those who relied on lunar observations for religious, cultural, and scientific purposes.
The space agency encouraged researchers, scholars, and religious groups to utilise the findings, adding that anyone requiring additional data for further analyses could visit the official office website.
Director, the Centre for Basic Space Science and Astronomy (CBSSA), an activity centre of NASRDA, Dr Bonaventure Okere, said it was regarded as the first stage of the moon, hence the new crescent.
Okere said the appearance of the new crescent was highly significant in the Islamic religion because it was used to determine some rites and practices like the beginning of the Ramadan fast.
“The Islamic religion uses moon phases for their Islamic rites but astronomers study the cycle of the rising and setting of the moon to determine moon days, which is usually 28 days.
“Astronomers use the moon cycle to generate the Lunar calendar, understand the part of the moon you can see daily,’’ he said.
News
Kogi State Mourns Loss of Media Icon Prof. Tom Adaba
Prof. Adaba, who passed away at the age of 83, was celebrated for his trailblazing contributions to Nigeria’s media landscape.
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The Kogi State Government has expressed a huge sense of loss following the demise of Prof. Tom Adaba, a pioneering broadcast expert, patriot, and distinguished son of Kogi.
Prof. Adaba, who passed away at the age of 83, was celebrated for his trailblazing contributions to Nigeria’s media landscape.
Prof. Adaba’s legacy is marked by groundbreaking achievements.
He was one of the first Nigerians to earn a Doctorate in Mass Communication, setting a high standard for academic excellence in the field.
His visionary leadership was evident during his tenure as the Principal of the Nigerian Television College, Jos, and as the inaugural Director General of the National Broadcasting Commission.
His work not only transformed the media industry but also laid a strong foundation for ethical journalism and responsible broadcasting across the nation.
In an official condolence message signed by the State Information Commissioner, Mr Kingsley Fanwo, the Kogi State Government described Prof. Adaba as “a media colossus, patriot, and a distinguished Nigerian” whose wisdom and dedication left an indelible mark on the country.
The government extended heartfelt condolences to his family, friends, and the entire media community, urging that his legacy be remembered as a beacon of inspiration.
The statement reads: “We have lost a great media pioneer whose life-long contributions to Nigeria’s broadcasting industry will forever be cherished. May the Almighty God grant him eternal rest and give his loved ones the strength to bear this irreparable loss.”
Prof. Adaba’s passing is not only a significant loss to Kogi State but also to Nigeria as a whole.
His illustrious career and unwavering patriotism will continue to inspire future generations in the realms of media and beyond.
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BREAKING: Police Have Sealed Our Hqrs – Osun Electoral Commission Boss Raises Alarm
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The Chairman of the Osun State Independent Electoral Commission (OSSIEC), Hashim Abioye, has raised alarm over the sealing of the commission’s headquarters by the police.
The incident on Saturday occurred as the commission proceeded with the controversial local government elections taking place across the state.
Speaking during a live current affairs program on Rave FM, Abioye said he is surprised that such a step could be taken.
He said, “I leave the police IGP in the hands of God.
“Election has started earnestly in all the polling units across the state but no police presence is noticeable from the information available to me.”
Meanwhile, Governor Ademola Adeleke participated in the exercise, casting his vote at a polling station in Ede.
After voting, the governor called on residents to remain calm and peaceful throughout the exercise.
The sealing of the OSSIEC headquarters comes after the Nigeria Police had earlier advised the Osun State Government not to proceed with the election.
Citing security risks and potential legal implications, the police had warned that holding the poll under the current circumstances could lead to unrest.
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