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Effects of Hyperinflation on Nigeria’s Real Estate

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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ASUU: Prof Piwuna is new national president
Prof. Piwuna was the immediate past National Vice President of the union.

A Professor of Medicine and Consultant Psychiatrist, Chris Piwuna, has been elected as the national president of the Academic Staff Union of Universities (ASUU).
He takes over from Emmanuel Osodeke, a Professor of Agriculture at the University of Agriculture, Umudike, Abia State, who was elected in May 2021.
Prof. Piwuna was the immediate past National Vice President of the union.
Piwuna, a former Dean of Students Affairs at the University of Jos, Plateau State, emerged victorious at an election during the union’s 23rd National Delegates Congress at the University of Benin in Benin City, Edo State.
News
Former military administrator Olubolade dies at 70
… he left the house to play lawn tennis at a nearby facility where he slumped.

Former Military Administrator of Bayelsa State, Navy Captain Omoniyi Caleb Olubolade (rtd), is dead.
Olubolade was also Minister of Special Duties, Minister of State, FCT, and Minister of Police Affairs.
He celebrated his 70th birthday on November 30, 2024.Olubolade, the Ipoti-Ekiti-born retired officer, died on Sunday, May 11, in Apapa, Lagos.
A statement by his first daughter, Mrs. Oluwayemisi Akinadewo, and first son, Mr. Dayo Olubolade, said that he left the house to play lawn tennis at a nearby facility where he slumped.
He drove himself to the facility to play lawn tennis in the evening and slumped while playing.
Efforts were made by medical officers around to revive him to no avail.
He was immediately rushed to Obisesan Naval Medical Hospital, Apapa, where he was pronounced dead.
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JUST IN: Court to hear Akpabio’s contempt claims against Natasha May 13

The Federal High Court in Abuja on Monday adjourned till Tuesday, May 13, for the definite hearing of the contempt claims made against the suspended Senator representing Kogi Central Senatorial District, Natasha Akpoti-Uduaghan, by Senate President Godswill Akpabio.
Justice Binta Nyako fixed the date following a submission by the second and third defendants, who informed the court that they had filed an application drawing attention to the plaintiff’s alleged contempt.
The legal dispute between Akpabio and Akpoti-Uduaghan originated from a disagreement over seating arrangements during plenary on February 20.
Subsequently, Akpoti-Uduaghan, during a television programme where she appeared as a guest, made allegations of sexual harassment against Akpabio.
Following the fallout, Akpoti-Uduaghan approached the Federal High Court seeking an order to restrain the Senate Committee on Ethics, Privileges, and Public Petitions from investigating her.
In an ex parte motion marked FHC/ABJ/CS/384/2025, she sued the Clerk of the National Assembly, the Senate President, and the Chairman of the Senate Committee on Ethics, Privileges, and Public Petitions, Senator Nedamwen Imasuen.
On March 4, the court issued an order restraining the Senate from commencing disciplinary proceedings against Akpoti-Uduaghan following her ex parte application.
However, on March 6, the Senate proceeded to suspend her, citing a report by the committee alleging gross misconduct, despite the matter being sub judice.
On Friday, April 4, 2025, Justice Nyako ordered Akpoti-Uduaghan, Akpabio, the Clerk of the National Assembly, the Senate, and Imasuen to refrain from granting media interviews or making social media posts related to the case while it remained pending before the court.
This order followed claims by Akpabio’s counsel that Akpoti-Uduaghan had been granting press interviews despite the court’s directive.
At the resumed sitting on Monday, Akpoti-Uduaghan’s legal team, led by Jibrin Okutekpa, informed the court that the matter was fixed for hearing and that all required documents had been filed.
Charles Yoila appeared for the first defendant; Paul Daudu represented the second defendant; Ekoh Ejembi (SAN) for the third defendant; and Valentine Offia for the fourth defendant.
All defence lawyers confirmed compliance with the court’s previous orders and readiness for the hearing.
However, Daudu informed the court that despite the order against social media posts, the plaintiff had published a satirical post on her Facebook page.
“This matter is coming up for definite hearing. The second defendant has filed its schedule of hearing. Ordinarily, we are ready to proceed, but a further affidavit was served on me just on Friday, which I am entitled to respond to.
“This court ordered that there should be no social media posts, but there was one. The plaintiff herself posted a satirical apology on her Facebook page,” Daudu said.
He argued that the post mocked the court and violated its order, urging the court to hold her in contempt.
Akpabio’s counsel, Ejembi, supported Daudu’s submission, stating that the plaintiff’s Facebook post undermined the court’s authority.
“We are alleging that the Facebook post made by the plaintiff is a mockery of the court’s proceedings. We tender a Punch newspaper report showing she made the post despite the court’s order,” Ejembi said.
In response, the plaintiff’s counsel maintained that the Facebook post was related to the sexual harassment allegation and not the issue before the court.
Okutekpa urged the court to disregard the defendants’ submissions and proceed with hearing the substantive matter.
“Our counter-affidavit concerns only the matter before the court. The satirical post has no connection to it,” he argued.
He also urged the court to fast-track the hearing, noting that Akpoti-Uduaghan had spent 68 cumulative days out of the National Assembly.
Justice Nyako, however, insisted that the contempt issue must be addressed first.
“I cannot proceed with this matter until I conclude on the issue of contempt. If there is contempt, I have to hear and determine it first,” she said.
In turn, Akpoti-Uduaghan’s counsel raised a contempt allegation against all the defendants.
“My Lord, you have paused this trial over a contempt allegation. We also have an issue of contempt against all the defendants,” he said.Justice Nyako cautioned the lawyers, warning that continued disobedience of court orders by their clients could lead to consequences.
“I have the power to summon all your clients to appear in court. If counsel or litigants disobey the court, then the court has no business hearing them—that is my position,” she said.
Addressing Akpoti-Uduaghan’s legal team, she added, “If you have an application for contempt, bring it forward so the court can hear it.
”She added, “You cannot allow your client to disrespect this court. If they are found in contempt, they will face punishment. If not, the court will proceed.”
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