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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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LASG reopens Abbatoir at Oko-Oba

The announcement was made by the State Commissioner for the Environment and Water Resources, Mr Tokunbo Wahab in a statement he personally signed.

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image credit : arisetv

Lagos State Government on Friday night directed the immediate re-opening of the Abbatoir at Oko-Oba following the fulflment of sanitation and hygienic prescriptions by the operators.

The announcement was made by the State Commissioner for the Environment and Water Resources, Mr Tokunbo Wahab in a statement he personally signed.

Mr Wahab said that the operators have substantially complied with the minimum benchmark for the operations of abbatoirs in the state which was flagrantly flouted necessitating the closure.

He informed that part of the conditions for the reopening is that on a monthly basis, the ministry of the Environment and Water Resources officials will conduct a periodic inspection of the facilities at the Abbatoir.

He urged the operators to avoid unsanitary activities, waste mismanagement and unhygienic handling of animal products as they conduct their businesses.

It will be recalled that the Oko-Oba Abbatoir was shut by the State Government on June 20 following an inspection by top State officials which discovered a flagrant disregard of the laws guiding safe operations of abbatoirs in the state.

SignedKunle AdeshinaDirector (Public Affairs)June 27, 2025

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Again, Vanguard’s Editor, Eze Anaba Emerges NGE President

The Managing Director of The Sun newspaper, Onuoha Ukoh, clinched the position of General -Secretary .

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Anaba, who was the incumbent, was returned unopposed, a development attributed to his widely acknowledged record of administrative excellence.

THE Nigerian Guild of Editors (NGE) on Friday reelected Mr Eze Anaba – the Editor of the Vanguard newspaper, as the President, during their ongoing Biennial National Convention in Enugu.

Anaba, who was the incumbent, was returned unopposed, a development attributed to his widely acknowledged record of administrative excellence.

The Managing Director of The Sun newspaper, Onuoha Ukoh, clinched the position of General -Secretary .

Other elected officers include:

Deputy President: Sabastine Abu

Vice President, West: Karbi Alabi

Vice Presidents: Hamza Idris and Sheddy Ozoene

Treasurer: Iyobosa Uwugiaren

Assistant Secretary: Gabriel Fulajimi Akinadewo

Publicity Secretary: Charles Kanu

Earlier , the Chairman of Channels Media Group, Dr. John Momoh had said that there can be no security without justice, and no unity without progress.

Momoh, who was Chairman of the Convention said that there can be no progress within inclusion.

He pointed out that insecurity has reared its head in many of Nigeria’s regions, while the country had witnessed divisions across ethnic and religious limes, while economic hardship and rising frustrations have made the citizens ask tough questions about Nigeria’s future.

Momoh enjoined the media not only to report conflict, but to also spotlight solutions. “Let’s promote understanding. Let’s be bridge-builders’, he said.

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BREAKING: Ganduje Resigns as APC National Chairman with immediate effect

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Abdullahi Umar Ganduje has resigned as the National Chairman of the All Progressives Congress (APC), with immediate effect.

Ganduje, who previously served as the Governor of Kano State from 2015 to 2023, cited health reasons for his resignation, stating the need to focus on his personal well-being.

His tenure as APC chairman, which began in August 2023, was riddled with internal party crises, legal disputes, and allegations of financial misconduct.

While his resignation letter attributed the move solely to health concerns, party insiders suggest rising political tension and internal opposition may have influenced his decision.

There have also been reports linking his exit to accusations of financial impropriety.

Some party members allegedly protested against what they described as “excessive financial demands” from his office—particularly over complaints by aspirants for FCT area council positions about the high fees required to secure party tickets.

Ganduje’s leadership faced multiple legal challenges. In April 2024, a Kano State High Court issued an ex parte order barring him from identifying as a party member, following a suit filed by some APC officials.

Although a separate suit filed by the APC North Central Forum seeking his removal was later dismissed by a Federal High Court in Abuja, his position remained contentious.

As the APC is yet to issue an official statement, speculation continues to mount over the true circumstances of Ganduje’s departure and its potential implications for the party’s future direction.

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