Business
HOW REAL ESTATE COMPANIES BENEFITED FROM FUEL SUBSIDY BY DENNIS ISONG
HOW REAL ESTATE COMPANIES BENEFITED FROM FUEL SUBSIDY BY DENNIS ISONG
Nigeria, being one of the largest oil-producing countries in Africa, has historically implemented fuel subsidies to alleviate the financial burden on its citizens and ensure affordable energy costs. However, the effects of fuel subsidies extend beyond the energy sector, with potential repercussions on various industries, including real estate. This article explores the impact of fuel subsidy on the real estate market in Nigeria, analyzing both positive and negative implications.
1) INCREASE IN CONSTRUCTION COSTS
Fuel subsidies significantly affect the cost of construction materials, transportation, and machinery used in the real estate sector. With subsidized fuel prices, the demand for fuel surges, leading to shortages and subsequent price increases. Consequently, transportation costs for construction materials rise, resulting in higher overall construction expenses. The increased cost of construction negatively impacts real estate developers, who may either pass the additional costs to buyers or experience reduced profit margins.
2) DECREASED INVESTOR CONFIDENCE
Fuel subsidies often strain Nigeria’s economy by diverting funds that could have been used for infrastructure development, education, and healthcare. This diversion of funds can lead to economic instability, inflation, and currency devaluation. Such economic uncertainties create a climate of investor caution, affecting the real estate market. Investors may hesitate to inject capital into the market, reducing overall investment and limiting the growth potential of the sector.
3) REDUCED AFFORDABILITY FOR HOMEBUYERS
Although fuel subsidies intend to ease the financial burden on citizens, they can have unintended consequences. When subsidies are removed or reduced, fuel prices increase, resulting in higher transportation costs and inflationary pressures. These factors affect the cost of living, including housing expenses. As the cost of construction materials rises, real estate developers may pass on the additional costs to homebuyers, making properties less affordable. Consequently, demand for real estate may decrease, affecting both the residential and commercial segments of the market.
4) SHIFTING DEMAND PATTERNS
Fuel subsidy reforms may cause shifts in demand patterns within the real estate market. As transportation costs rise due to increased fuel prices, there may be a growing preference for properties located closer to urban centers, reducing demand for properties in suburban or rural areas. Developers and investors must adapt to these changing trends, potentially leading to a restructuring of the real estate market and a concentration of development in specific regions.
5) POTENTIAL FOR INFRASTRUCTURE DEVELOPMENT
One potential positive impact of fuel subsidy reforms on the real estate sector is the redirection of funds towards infrastructure development. If the government allocates the savings from subsidy removal to improving transportation networks, power supply, and other essential infrastructure, it can boost economic growth and enhance the overall appeal of the real estate market. Improved infrastructure attracts investors and stimulates demand for both residential and commercial properties.
6) IMPACT ON RENTAL COSTS
Fuel subsidy reforms can indirectly impact rental costs in Nigeria. As transportation expenses increase due to higher fuel prices, landlords and property owners may pass on these costs to tenants through higher rent charges. This can further burden individuals and businesses seeking affordable rental options, potentially affecting occupancy rates and overall demand for rental properties.
7) DEVELOPMENT OF ALTERNATIVE ENERGY SOLUTIONS
The removal or reduction of fuel subsidies can incentivize the exploration and development of alternative energy solutions in the real estate sector. With higher fuel prices, there is a greater impetus for adopting renewable energy sources such as solar power or energy-efficient technologies. This shift towards sustainable energy practices can lead to long-term cost savings, reduced dependence on fossil fuels, and a more environmentally friendly real estate industry.
8) IMPACT ON COMMERCIAL REAL ESTATE
Fuel subsidy reforms can have varying impacts on different segments of the real estate market. In the case of commercial real estate, increased fuel prices can affect operational costs for businesses. This may result in reduced profitability and potential downsizing or relocation decisions. Consequently, there could be a decline in demand for office spaces and commercial properties in certain areas, influencing rental prices and investment opportunities.
9) REGIONAL DISPARITIES
The effects of fuel subsidy on real estate can vary across different regions of Nigeria. As fuel prices fluctuate, regions that rely heavily on fuel-based transportation for construction materials and commuting may experience more significant challenges in the real estate sector. Conversely, regions with well-developed infrastructure and alternative transportation options may be less affected, maintaining relatively stable real estate markets.
10) POTENTIAL FOR GOVERNMENT REVENUE GENERATION
While fuel subsidy reforms may initially introduce challenges for the real estate market, they can also provide opportunities for the government to generate additional revenue. By redirecting funds from subsidy savings, the government can invest in real estate development projects or introduce policies that encourage private sector investment. This can stimulate economic growth, create job opportunities, and contribute to the expansion of the real estate sector in Nigeria.
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
Nigeria’s Inflation Drops to 15.10% as NBS Reports Deflationary Trend
Nigeria’s headline inflation rate declined to 15.10 per cent in January 2026, marking a significant drop from 27.61 per cent recorded in January 2025, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics.
The report also showed that month-on-month inflation recorded a deflationary trend of –2.88 per cent, representing a 3.42 percentage-point decrease compared to December 2025. Analysts say the development signals easing price pressures across key sectors of the economy.
Food inflation stood at 8.89 per cent year-on-year, down from 29.63 per cent in January 2025. On a month-on-month basis, food prices declined by 6.02 per cent, reflecting lower costs in several staple commodities.
The data suggests a sustained downward trajectory in inflation over the past 12 months, pointing to improving macroeconomic stability.
The administration of President Bola Ahmed Tinubu has consistently attributed recent economic adjustments to ongoing fiscal and monetary reforms aimed at stabilising prices, boosting agricultural output, and strengthening domestic supply chains.
Economic analysts note that while the latest figures indicate progress, sustaining the downward trend will depend on continued policy discipline, exchange rate stability, and improvements in food production and distribution.
The January report provides one of the clearest indications yet that inflationary pressures, which surged in early 2025, may be moderating.
Nigeria’s headline inflation rate declined to 15.10 per cent in January 2026, marking a significant drop from 27.61 per cent recorded in January 2025, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics.
The report also showed that month-on-month inflation recorded a deflationary trend of –2.88 per cent, representing a 3.42 percentage-point decrease compared to December 2025. Analysts say the development signals easing price pressures across key sectors of the economy.
Food inflation stood at 8.89 per cent year-on-year, down from 29.63 per cent in January 2025. On a month-on-month basis, food prices declined by 6.02 per cent, reflecting lower costs in several staple commodities.
The data suggests a sustained downward trajectory in inflation over the past 12 months, pointing to improving macroeconomic stability.
The administration of President Bola Ahmed Tinubu has consistently attributed recent economic adjustments to ongoing fiscal and monetary reforms aimed at stabilising prices, boosting agricultural output, and strengthening domestic supply chains.
Economic analysts note that while the latest figures indicate progress, sustaining the downward trend will depend on continued policy discipline, exchange rate stability, and improvements in food production and distribution.
The January report provides one of the clearest indications yet that inflationary pressures, which surged in early 2025, may be moderating.
Alpha Morgan to Host 19th Economic Review Webinar
In an economy shaped by constant shifts, the edge often belongs to those with the right information.
On Wednesday, February 25, 2026, Alpha Morgan Bank will host the 19th edition of its Economic Review Webinar, a high-level thought leadership session designed to equip businesses, investors, and individuals with timely financial and economic insight.
The session, which will hold live on Zoom at 10:00am WAT and will feature economist Bismarck Rewane, who will examine the key signals influencing Nigeria’s economic direction in 2026, including policy trends, market movements, and global developments shaping the local landscape.
With a consistent track record of delivering clarity in uncertain times, the Alpha Morgan Economic Review continues to provide practical context for decision-making in a dynamic environment.
Registration for the 19th Alpha Morgan Economic Review is free and can be completed via https://bit.ly/registeramerseries19
It is a bi-monthly platform that is open to the public and is held virtually.
Visit www.alphamorganbank to know more.
GTBank Launches Quick Airtime Loan at 2.95%
Guaranty Trust Bank Ltd (GTBank), the flagship banking franchise of GTCO Plc, Africa’s leading financial services group, today announced the launch of Quick Airtime Loan, an innovative digital solution that gives customers instant access to airtime when they run out of call credit and have limited funds in their bank accounts, ensuring customers can stay connected when it matters most.
In today’s always-on world, running out of airtime is more than a minor inconvenience. It can mean missed opportunities, disrupted plans, and lost connections, often at the very moment when funds are tight, and options are limited. Quick Airtime Loan was created to solve this problem, offering customers instant access to airtime on credit, directly from their bank. With Quick Airtime Loan, eligible GTBank customers can access from ₦100 and up to ₦10,000 by dialing *737*90#. Available across all major mobile networks in Nigeria, the service will soon expand to include data loans, further strengthening its proposition as a reliable on-demand platform.
For years, the airtime credit market has been dominated by Telcos, where charges for this service are at 15%. GTBank is now changing the narrative by offering a customer-centric, bank-led digital alternative priced at 2.95%. Built on transparency, convenience and affordability, Quick Airtime Loan has the potential to broaden access to airtime, deliver meaningful cost savings for millions of Nigerians, and redefine how financial services show up in everyday life, not just in banking moments.
Commenting on the product launch, Miriam Olusanya, Managing Director of Guaranty Trust Bank Ltd, said: “Quick Airtime Loan reflects GTBank’s continued focus on delivering digital solutions that are relevant, accessible, and built around real customer needs. The solution underscores the power of a connected financial ecosystem, combining GTBank’s digital reach and lending expertise with the capabilities of HabariPay to deliver a smooth, end-to-end experience. By leveraging unique strengths across the Group, we are able to accelerate innovation, strengthen execution, and deliver a more integrated customer experience across all our service channels.”
Importantly, Quick Airtime Loan highlights GTCO’s evolution as a fully diversified financial services group. Leveraging HabariPay’s Squad, the solution reinforces the Group’s ecosystem proposition by bringing together banking, payment technology, and digital channels to deliver intuitive, one-stop experiences for customers.
With this new product launch, Guaranty Trust Bank is extending its legacy of pioneering digital-first solutions that have redefined customer access to financial services across the industry, building on the proven strength of its widely adopted QuickCredit offering and the convenience of the Bank’s iconic *737# USSD Banking platform.
About Guaranty Trust Bank
Guaranty Trust Bank (GTBank) is the flagship banking franchise of GTCO Plc, a leading financial services group with a strong presence across Africa and the United Kingdom. The Bank is widely recognized for its leadership in digital banking, customer experience, and innovative financial solutions that deliver value to individuals, businesses, and communities.
About HabariPay
HabariPay is the payments fintech subsidiary of GTCO Plc, focused on enabling fast, secure, and accessible digital payments for individuals and businesses. By integrating payments and digital technology, HabariPay supports innovative services that make everyday financial interactions simpler and more seamless.
Enquiries:
GTCO
Group Corporate Communication
[email protected]
+234-1-2715227
www.gtcoplc.com
-
celebrity radar - gossips6 months agoWhy Babangida’s Hilltop Home Became Nigeria’s Political “Mecca”
-
society6 months agoPower is a Loan, Not a Possession: The Sacred Duty of Planting People
-
society5 months agoReligion: Africa’s Oldest Weapon of Enslavement and the Forgotten Truth
-
news6 months agoTHE APPOINTMENT OF WASIU AYINDE BY THE FEDERAL GOVERNMENT AS AN AMBASSADOR SOUNDS EMBARRASSING