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Effects of Hyperinflation on Nigeria’s Real Estate

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By Dennis Isong

Definition of Hyperinflation: Hyperinflation is an extremely rapid and out-of-control increase in prices, often exceeding 50% per month. Unlike regular inflation, which is a normal rise in prices over time, hyperinflation involves a collapse in the value of currency, causing prices of goods and services to skyrocket.

This economic phenomenon severely erodes the purchasing power of money, leading to a loss of confidence in the currency and creating chaos in the economy.

Causes of Hyperinflation Several factors can trigger hyperinflation, including:

1. Excessive Money Supply:

When a country prints an excessive amount of money without corresponding economic growth, it can lead to hyperinflation.

This often happens when governments finance large budget deficits by creating new money.

2. Loss of Confidence in the country’s legal tender: If people lose confidence in a currency’s value, they may rush to spend it quickly, leading to rapid price increases.

3. Demand-Pull Inflation: When aggregate demand in an economy persistently exceeds aggregate supply, it can cause prices to rise uncontrollably.

4. Cost-Push Inflation:  Increases in the costs of production (such as wages and raw materials) can lead to higher prices. If this happens on a large scale, it can contribute to hyperinflation.

5. Exchange Rate Depreciation: A sharp decline in the value of a country’s currency compared to others can make imports more expensive, fueling inflation.

Effects of Hyperinflation on Nigeria Real Estate

Hyperinflation has profound effects on Nigeria’s real estate sector: 1. Value Erosion: Hyperinflation erodes the value of money, making it difficult to preserve the value of real estate investments. Property owners may find that the real value of their assets decreases over time, even if nominal prices increase.

2. Investment Deterrence:

The uncertainty and instability caused by hyperinflation deter both domestic and foreign investment in real estate. Investors seek stable environments, and hyperinflation creates too much risk.

Nigerians in the diaspora can influence the real estate market by buying properties, driving demand, and potentially stabilizing prices in certain segments of the market.

3. Construction Costs:

The costs of building materials and labor can skyrocket during hyperinflation, making new construction projects prohibitively expensive. This leads to a slowdown in real estate development.

4. Rental Market Impact:

Rent prices can become highly volatile. Landlords may struggle to set rents that keep up with inflation, while tenants may find it increasingly difficult to afford housing.

5. Financing Difficulties:

Hyperinflation disrupts the lending market. Banks may be unwilling to issue long-term loans, and interest rates can become extraordinarily high, making mortgage financing unaffordable for many potential homeowners.

How it Affects Nigerians in the Diaspora Positively While hyperinflation brings significant challenges, it can have some positive effects for Nigerians in the diaspora:

1. Investment Opportunities:

Nigerians living abroad with access to stable foreign currencies can find investment opportunities in the domestic real estate market.

As local property values plummet in real terms, diaspora Nigerians can purchase properties at relatively lower prices, potentially yielding significant returns if and when the economy stabilizes.

2. Remittance Value:

Remittances sent back to Nigeria by diaspora Nigerians can gain substantial value. As the local currency depreciates, the foreign currency received through remittances can go much further, enabling recipients to buy more real estate or other assets.

3. Support for Family and Community:

Diaspora Nigerians can provide crucial financial support to their families, helping them cope with the economic turmoil. This support can include funding for housing, which becomes more pressing during hyperinflation.

4. Market Influence:

With increased purchasing power, Nigerians in the diaspora can influence the real estate market by buying properties, driving demand, and potentially stabilizing prices in certain segments of the market.

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Governor Soludo Mourns Pope Francis, consoles Catholic Faithful

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Anambra State Governor, Professor Chukwuma Charles Soludo, CFR, has expressed deep sadness at the passing of His Holiness, Pope Francis, who departed peacefully on Easter Monday, April 21, 2025, at the age of 88.

In his condolence message, Governor Soludo extends his solemn condolences to the Catholic Church in Anambra State, Nigeria, the Vatican, and the global Christian community.

He said the loss of Pope Francis, a globally respected icon of faith, humility, and compassion, has indeed grieved the hearts of Catholics and all humanity as his lifelong dedication to championing the cause of the poor, fostering interfaith unity, and advocating for peace and justice has left the world a better place.

Governor Soludo further remarked that “Pope Francis was a shepherd whose legacy transcended borders” .

“His teachings on love, mercy, and solidarity touched base with the people of Anambra, inspiring the government to build a society rooted in dignity and hope” .

“Indeed, the Holy Father’s passing on Easter Monday, a day symbolising Christ’s triumph over death, is deeply instructive and a reflection on the enduring power of resurrection and hope” .

Governor Soludo however stands in solidarity with the global Catholic community during this period of mourning, celebrating a life extraordinarily lived in service to God and humanity, and praying for the soul of Pope Francis to find repose in the comforting grace of the Almighty God.

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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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