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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.

▪︎Dennis Isong is a TOP REALTOR IN LAGOS.He Helps Nigerians in Diaspora to Own Property In Lagos Nigeria STRESS-FREE. For Questions WhatsApp/Call 2348164741041

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BREAKING: Pope Francis dies at 88

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Pope Francis has died at the age of 88.

The Vatican confirmed that the pontiff passed away on Easter Monday at his residence in the Casa Santa Marta within Vatican City.

Camerlengo of the Apostolic Chamber, Cardinal Kevin Farrell, announced the death of Pope Francis from the Casa Santa Marta on Monday morning.

Farrel said the Pope died at exactly 7.35am.

His death comes hours after he greeted Catholic faithful who were at the Vatican on Sunday for the Easter mass.

The announcement by Cardinal Farrel read, “Dearest brothers and sisters, with deep sorrow, I must announce the death of our Holy Father Francis.

“At 7:35 this morning, the Bishop of Rome, Francis, returned to the house of the Father.

“His entire life was dedicated to the service of the Lord and of His Church. He taught us to live the values of the Gospel with fidelity, courage, and universal love, especially in favour of the poorest and most marginalised.

“With immense gratitude for his example as a true disciple of the Lord Jesus, we commend the soul of Pope Francis to the infinite merciful love of the One and Triune God.

”It would be recalled that Pope has been undergoing recovery after he was discharged from the Agostino Gemelli Polyclinic Hospital.

After 38 days in hospital, the late Pope returned to his Vatican residence at the Casa Santa Marta to continue his recovery.

The Pope was admitted on Friday, February 14, 2025, after suffering from a bout of bronchitis for several days.

Pope Francis’ clinical situation gradually worsened, and his doctors diagnosed bilateral pneumonia on Tuesday, February 18.

In 1957, in his early 20s, Jorge Mario Bergoglio underwent surgery in his native Argentina to remove a portion of his lung that had been affected by a severe respiratory infection.

As he aged, Pope Francis frequently suffered bouts of respiratory illnesses, even cancelling a planned visit to the United Arab Emirates in November 2023 due to influenza and lung inflammation.

In April 2024, the late Pope Francis approved an updated edition of the liturgical book for papal funeral rites, which will guide the funeral Mass, which has yet to be announced.

The second edition of the Ordo Exsequiarum Romani Pontificis introduces several new elements, including how the Pope’s mortal remains are to be handled after death.

The ascertainment of death takes place in the chapel, rather than in the room where he died, and his body is immediately placed inside the coffin.

According to Archbishop Diego Ravelli, Master of Apostolic Ceremonies, the late Pope Francis had requested that the funeral rites be simplified and focused on expressing the faith of the Church in the Risen Body of Christ.

“The renewed rite,” said Archbishop Ravelli, “seeks to emphasise even more that the funeral of the Roman Pontiff is that of a pastor and disciple of Christ and not of a powerful person of this world.”

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JUST IN: Senate shifts resumption to May 6

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The leadership of the 10th Senate has announced a shift in the date of its resumption.

The earlier date for resumption was fixed for April 29, 2025.

However, the new date has been adjusted to May 6.

The announcement was contained in an internal memo dated April 20, 2025, addressed to all senators and signed by the Senate Clerk, Andrew Ogbonna Nwoba.

The postponement was hinged on the International Workers’ Day public holiday, which is celebrated on May 1 and for the lawmakers to take their time to attend to key constituency engagements.

The circular reads, “Distinguished Senators, I am directed to inform you that the resumption of plenary sittings of the Senate, earlier scheduled for Monday, 29th April 2025, has been rescheduled to Tuesday, 6th May 2025.

“This postponement is made to allow Distinguished Senators to stay with their constituents during the International Workers’ Day public holiday in the first week of May and to further enhance constituency engagements.

“Distinguished Senators are kindly requested to take note of this postponement while regretting any inconvenience the change might have caused.”

Recall that the Senate had on March 27 adjourned the plenary to allow lawmakers to observe the Easter and Eid-El-Fitr holidays.

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Judgment analysis: Report me to LPDC, Falana dares Wike

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Human rights lawyer and Senior Advocate of Nigeria, Femi Falana, has dared the Minister of the Federal Capital Territory, Nyesom Wike, to report him to the Legal Practitioners’ Disciplinary Committee over his (Falana’s) analysis of the Supreme Court judgment on the Rivers State politucal crisis.

Falana, in a statement on Sunday, titled “I Did Not Lie Against the Supreme Court of Nigeria,” accused Wike of trying in vain to incite the Supreme Court against him.

The SAN said contrary to Wike’s claim, he did not lie or misrepresent the Supreme Court’s decision concerning the defection of 27 members of the Rivers State House of Assembly.

Falana dismissed Wike’s claims as “spurious and tendentious in every material particular,” accusing the minister of attempting to incite the apex court against him.

Wike had publicly criticised Falana during a press conference in Abuja, asserting that the senior lawyer misrepresented the Supreme Court’s ruling on Channels TV.

Wike said, “If someone of Femi Falana’s calibre can go on national television and lie, it’s very serious. Lies can cause a lot of crises.

”In response, Falana explained, “Mr. Wike subjected me to another scurrilous attack in a press conference, where he alleged that I lied about the defection status of certain legislators during my appearance on Channels TV.”

He added that the issue of the lawmakers’ defection was still pending before the Federal High Court in Port Harcourt when the Supreme Court made its ruling.

Falana clarified, “I did not lie against the Supreme Court in respect of the judgment in question.

All I said was that the matter of the defection of the 27 legislators was raised suo motu and determined by the eminent Justices of the apex court.

”He further asserted that there were video tapes and a sworn affidavit in which the lawmakers confirmed their defection from the Peoples Democratic Party to the All Progressives Congress.

Falana emphasised that his right to criticise court judgments is protected by both the Nigerian Constitution and international human rights law.

“My fundamental right to criticise the decisions of courts is guaranteed by Section 39 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), and Article 9 of the African Charter on Human and Peoples’ Rights,” he said.

The SAN accused Wike of hypocrisy, pointing out that the minister has a history of attacking judges when rulings do not align with his political views.

Falana added, “Unlike Mr. Wike, who calls judges names whenever they disagree with his politics of opportunism, I have always criticised the judgments of domestic and regional courts with utmost decorum and in good faith.”

He referenced a famous statement by the late Justice Oputa in the Adegoke Motors Limited v. Dr. Babatunde Adesanya case: “We are final not because we are infallible; rather, we are infallible because we are final,” highlighting the judiciary’s openness to criticism.

Falana also quoted former Chief Justice of Nigeria, Ibrahim Tanko Muhammad, who once said, “You have the responsibility of drawing our attention to where things are going wrong or on the verge of going wrong.

”Falana challenged Wike to take legal action if he believed Falana had breached professional conduct.

“Since he has become the unsolicited defender of the judiciary, I challenge him to report me to the Legal Practitioners Disciplinary Committee for professional misconduct,” Falana said.

On the issue of legislative defection, Falana warned that the Supreme Court’s recent stance—requiring proof of defection through a party’s membership register—could embolden “unpatriotic politicians to justify political prostitution in Nigeria.

”He urged the court to adhere to its earlier rulings, such as in Attorney-General of the Federation v. Abubakar and Abegunde v. Ondo State House of Assembly, where it ruled that legislators who defect automatically lose their seats.

Falana concluded that Wike’s attempts to discredit him had failed.

“It is indubitably clear that the allegation leveled against me by Mr. Wike is spurious… He has failed in his desperate bid to incite the Justices of the Supreme Court against me without any basis whatsoever.

”In a recent media outburst, Wike taunted Falana for losing a case he had won at the Supreme Court, dubbing him “a television lawyer.”

Falana chose not to engage with Wike’s comments at the time, stating, “Mr. Wike is the only life bencher in Nigeria who has never handled a case in any trial court or appellate court.

”Falana further added, “It is no crime if a lawyer loses a case in any court. Only a corrupt lawyer wins all cases in all courts.”

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