Connect with us

News

Effects of Hyperinflation on Nigeria’s Real Estate

Published

on

197 Views

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.

▪︎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.

News

Atiku Backs Suspension of new tax framework , following unconstitutional forgery

This constitutional violation exposes a troubling reality: a government obsessed with imposing ever-increasing tax burdens on impoverished Nigerians rather than creating conditions for prosperity.

Published

on

By

31 Views

Atiku Abubakar, ex- Vice President of Nigeria (1999-2007) has strengthened the public calls for the suspension of the Federal Government’s new tax laws following the discovery of illegal and unauthorized alterations made to document after passage by the National Assembly.

Atiku, in a statement he signed personally on Tuesday, asserted “What the National Assembly did not pass cannot become law.”

Atiku described the forgery of the tax law as “a brazen act of treason against the Nigerian people and a direct assault on our constitutional democracy.”

The statement reads: “This draconian overreach by the executive branch undermines the foundational principle of legislative supremacy in the making of laws.

It reveals a government more interested in extracting wealth from struggling citizens than empowering them to prosper.

The Unconstitutional Alterations

The following substantive changes were allegedly illegally inserted into the tax bills after parliamentary approval, in clear violation of Sections 4 and 58 of the 1999 Constitution:

1. New Coercive Powers Without Legislative Consent

*Arrest powers granted to tax authorities

*Property seizure and garnishment without court orders

*Enforcement sales conducted without judicial oversightThese provisions transform tax collectors into quasi-law enforcement agencies, stripping Nigerians of due process protections that the National Assembly deliberately included.

2. Increased Financial Burdens on Citizens*Mandatory 20% security deposit before appealing tax assessments*Compound interest on tax debts*Quart

erly reporting requirements with lowered thresholds

*Forced USD computation for petroleum operations

These changes erect barriers that prevent ordinary Nigerians from challenging unjust assessments while increasing compliance costs for businesses already struggling in a difficult economy.

3. Removal of Accountability Mechanisms

*Deletion of quarterly and annual reporting obligations to the National Assembly

*Elimination of strategic planning submission requirements

*Removal of ministerial supervisory provisions

By stripping away oversight mechanisms, the government has insulated itself from accountability while expanding its powers—a hallmark of authoritarian governance.

A Government Against Its People

This constitutional violation exposes a troubling reality: a government obsessed with imposing ever-increasing tax burdens on impoverished Nigerians rather than creating conditions for prosperity.

Instead of investing in infrastructure, education, healthcare, and economic empowerment that would expand the tax base organically, this administration chooses the path of aggressive extraction from an already struggling populace.

Nigeria’s poverty rate remains alarmingly high, unemployment continues to devastate families, and inflation erodes purchasing power daily.

Yet rather than supporting citizens to become more productive, thereby generating sustainable tax revenues, the government employs draconian measures to squeeze resources from people who have little left to survive.

True economic growth comes from empowering citizens, not impoverishing them further through punitive taxation and erosion of legal protections.

A thriving economy with prosperous citizens naturally generates robust tax revenues. But this requires vision, investment, and patience, qualities evidently lacking in an administration that resorts to constitutional manipulation to achieve short-term fiscal goals.

I hereby call upon:1. The Executive to immediately suspend the implementation of the tax law effective January 1, 2026 to give room for a proper investigation.

2. The National Assembly to immediately rectify these illegal alterations through proper legislative processes and hold accountable those responsible for this constitutional breach.

3. The Judiciary to strike down these unconstitutional provisions and reaffirm the sanctity of the legislative process.

4. Civil Society and all Nigerians to reject this assault on democratic principles and demand governance that serves the people rather than exploiting them.

5. The Government to abandon this path of extraction and oppression, and instead focus on policies that enable Nigerian citizens and businesses to thrive.

6. The EFCC to immediately investigate and prosecute those found culpable in the illegal alteration of our laws to extort and defraud the Nigerian people.

What the National Assembly did not pass cannot become law.

This fundamental principle must be defended, or we risk descending into arbitrary rule where constitutional safeguards mean nothing.

The Nigerian people deserve better than a government that circumvents democracy to impose hardship.

We demand accountability, constitutional compliance, and economic policies that build prosperity rather than deepen poverty.”

Continue Reading

News

FIRS says NIN to serve as Tax ID for individuals

The new tax law is scheduled to come into force in January 2026 and mandates the use of a Tax ID for certain financial and economic transactions, including banking-related activities.

Published

on

By

23 Views

The Federal Inland Revenue Service (FIRS) has announced that the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) will now automatically serve as the Tax Identification Number (Tax ID) for individual Nigerians under the country’s new tax regime.

FIRS also said that registered businesses will also no longer need a separate Tax Identification Number, as their Corporate Affairs Commission (CAC) registration (RC) number will now function as their Tax ID.

The Service made the disclosure on its official X handle on Monday, ahead of the passage of the Nigeria Tax Administration Act (NTAA), one of the new tax laws introduced as part of the Federal Government’s broader fiscal and tax reform agenda .

The new tax law is scheduled to come into force in January 2026 and mandates the use of a Tax ID for certain financial and economic transactions, including banking-related activities.

Continue Reading

News

Tanker crushes Akpabio’s dispatch rider to death

We went to Oyo State for the installation of our colleague, but the vehicles that came to pick me up at the Ibadan airport, unfortunately, my dispatch rider was run over by a tanker driver, and his head was shattered.

Published

on

By

25 Views

Ibrahim Hussaini, a dispatch rider attached to the convoy of Godswill Akpabio, the Senate President, has been killed after a petrol tanker rammed into the motorcade.

Although the Senate President did not state the precise location of the crash, he said that it happened in Ibadan, Oyo State, shortly after members of his convoy picked him up from the Ibadan Airport.

Akpabio announced the death during the plenary on Tuesday; he extended condolences to the family of the deceased.

Dispatch riders, who are police officers, form part of the security detail of top government officials and typically escort convoys on motorcycles.

Dispatch riders, who are police officers, form part of the security detail of top government officials and typically escort convoys on motorcycles.

“We went to Oyo State for the installation of our colleague, but the vehicles that came to pick me up at the Ibadan airport, unfortunately, my dispatch rider was run over by a tanker driver, and his head was shattered.

“We just buried him 15 minutes ago in Kogi State. He left two wives and four children,” the Senate President told lawmakers

Continue Reading

Trending