Nigeria’s inflation rate dropped to 18.02% in September 2025, marking the lowest level in three years, according to data from the National Bureau of Statistics (NBS). The decline represents the sixth consecutive month of slowdown and a dramatic fall from the 34.19% peak recorded in June 2024, signaling growing confidence in the Central Bank of Nigeria’s (CBN) strategy to curb inflation.

At the IMF World Bank Annual Meetings in Washington, CBN Governor Olayemi Cardoso stated that inflation is expected to continue on a downward path in the near term. He attributed this trend to sustained tight monetary conditions, a stabilizing naira, and improvements in food supply across the country.

To tackle inflationary pressures, the CBN pursued an aggressive tightening cycle, raising the Monetary Policy Rate (MPR) from 18.75% in July 2023 to 27.50% by mid-2025, before slightly easing it to 27.00% in September. The Cash Reserve Ratio (CRR) for commercial banks was also lifted to 50%, later reduced to 45%, as part of what the Bank calls a firm anti-inflationary stance.

Core inflation eased to 19.53%, while food inflation the most volatile component fell to 16.87%, reflecting stronger agricultural output and lower logistics costs. The CBN noted that these improvements were reinforced by ongoing foreign exchange market reforms, which have stabilized the naira and narrowed the gap between the official and Bureau de Change (BDC) rates to less than 2%, compared with double-digit disparities a year earlier.

According to the CBN, the stabilization of the naira has been instrumental in reducing imported inflation. The Bank added that enhanced FX liquidity and reduced market volatility are contributing to stronger price stability. Nigeria’s foreign reserves have also risen above $43 billion, providing more than eleven months of import cover, a development driven by consistent foreign exchange inflows and growing investor confidence in government reforms.

While inflation remains above the CBN’s target range, the continued moderation has eased pressure on households and businesses. Analysts say this progress could offer room for future interest rate adjustments if the disinflation trend persists. The CBN emphasized that its priority is to consolidate these gains by maintaining exchange rate stability, boosting food production, and moderating energy costs to sustain price stability.

Governor Olayemi Cardoso reaffirmed the Bank’s commitment to restoring macroeconomic balance and anchoring inflation expectations. “Inflation affects every Nigerian,” he said. “Our job is to ensure that monetary policy supports a stable and predictable environment for growth.”

The post Nigeria’s Inflation Falls to 18.02%, Lowest in Three Years appeared first on Housing TV Africa.

The numbers don’t add up—there are plenty of empty houses, yet millions remain without adequate housing. So, what’s fueling this crisis?

Despite a recent dip in inflation, the cost of property remains stubbornly high. The National Bureau of Statistics reported a decline in Nigeria’s inflation rate to 23.18% in February 2025, down from 24.48% in January. The Central Bank of Nigeria also maintained its Monetary Policy Rate at 27.50%, expecting inflation to ease further. But none of this has translated into lower home prices or cheaper rent. The real estate market seems immune to these economic shifts, and the reasons are as complex as they are frustrating.

Supply and Demand Imbalance

Nigeria faces a massive housing deficit, yet properties especially in highbrow areas are priced far beyond what the average Nigerian can afford. In Lagos, for example, real estate in locations like Banana Island, Ikoyi, Victoria Island, and Lekki is overpriced. This is due to limited land, soaring construction costs, and speculative investment. A similar trend is visible in cities like Accra, Dubai, Nairobi, and Johannesburg.

Rising Costs of Building Materials

Another major issue is the high cost of building materials. Nigeria imports a significant portion of its construction supplies, making home prices vulnerable to currency fluctuations and global market shifts. The rising costs of cement, roofing sheets, and finishing materials have pushed property prices even higher.

Bureaucratic bottlenecks also play a role. Expensive building approvals, high taxes, and lengthy land registration processes add to the overall cost of homeownership.

The Impact of Speculative Investment

Speculative investment is making matters worse. Wealthy investors and developers hoard land and properties, waiting for prices to rise before reselling at exorbitant rates. This artificially inflates market prices, making it even harder for middle-class and low-income buyers to enter the market.

Many of these properties remain vacant for months or even years because they are priced well above what buyers are willing to pay.

Experts Sound the Alarm

Industry experts warn that the current trajectory is unsustainable. A significant number of properties in major cities have remained unsold for over six months simply because their prices are unrealistic.

Stephen Jagun, Chairman of the Professional Practice Committee at ESVARBON, attributes the crisis to land scarcity, foreign investor interest, and lack of infrastructure. He believes a shift in focus is needed. Investors should explore emerging areas where land is still relatively affordable instead of concentrating on already overpriced locations.

The Role of Government and Developers

Jagun urges developers to embrace cost-effective building materials and sustainable construction techniques. Meanwhile, the government must implement land reforms, streamline housing policies, and invest in infrastructure to open up new areas for development.

Olufemi Oyedele, a real estate expert, highlights that overpriced real estate reflects deeper economic issues. He notes that:

• Over 100 million Nigerians live in inadequate housing.

• Millions of properties sit vacant because they are too expensive.

• The Housing Affordability Index shows a one-bedroom flat costs:

  • ₦17.5 million in Ikeja

  • ₦6.5 million in Abeokuta

  • ₦13.5 million in Abuja

Developers, he argues, must align their projects with the financial realities of the population.

Stronger Regulations Needed

Oyedele also believes stronger government intervention is necessary. He suggests:

• No one should start construction without securing financing from a mortgage bank.

• Laws should regulate abandoned properties.

• The government must increase social housing supply for low-income earners.

Kunle Awolaja, President of the African Real Estate Society, agrees. He points out that housing prices in Nigeria don’t match income levels, making homeownership difficult. He urges investors to:

• Consider alternative construction methods.

• Use financing models like cooperative housing schemes.

The Path Forward

The solution lies in a mix of government action, industry reform, and smarter investment strategies. The government must:

• Regulate speculative buying.

• Provide incentives for affordable housing.

• Invest in infrastructure projects to ease the pressure on prime locations.

• Expand road networks, water supply, and electricity to make more areas livable.

If these issues remain unaddressed, the housing crisis will only worsen. The gap between supply and affordability will continue to grow, locking millions out of homeownership.

However, if pricing is regulated, policies are enforced, and affordability becomes a priority, Nigeria’s real estate market can finally become accessible to those who need it most.

The post The Real Estate Price Trap: Why Homes in Lagos and Other Cities Remain Out of Reach appeared first on Housing TV Africa.

This sharp increase, coupled with a dire shortage of available housing, has created a fierce competition where only the highest bidders secure accommodation, leaving many scrambling for alternatives.

The housing shortage has provided landlords and estate agents with an opportunity to exploit the situation. Agents are now charging exorbitant fees for services such as commission, agreements, and maintenance charges, adding further strain on those seeking shelter. The economic hardship gripping the country has only exacerbated the plight of tenants, with many forced to relocate to less desirable and more distant areas in search of affordable housing.

In Lagos, rents for newly constructed one-bedroom apartments in prime locations like Victoria Island, Lekki, and Ikeja GRA now range from ₦1.5 million to ₦3.5 million annually, a staggering increase from ₦600,000 to ₦1.2 million earlier in 2024. Two-bedroom apartments in these areas, which are in high demand but short supply, now cost between ₦5 million and ₦9 million, depending on amenities, while three-bedroom units fetch up to ₦14 million. For those unable to afford these prices, areas like Ayobo, Mowe-Ofada, and Ikorodu have become last resorts, despite the increased commuting costs they entail.

The crisis is no less severe in Abuja, where neighborhoods like Wuse 2, Asokoro, and Gwarinpa have witnessed rents for one-bedroom apartments soar to as much as ₦13 million, depending on size and location. The demand has overwhelmed supply, forcing many to compete for limited options. As a result, landlords in suburban areas have seized the opportunity to hike rents significantly.

One Lagos-based estate agent, Alhaji Sunday Agbabiaka, noted that properties in previously affordable areas like Ipaja and Ayobo have seen rental costs double or triple within a year due to overpopulation and soaring demand. “The demand for accommodation far outweighs the available supply. Landlords know this and are taking advantage of the situation. It’s not unusual to see 10 people competing for a single apartment, which inevitably leads to higher rents,” he explained.

Beyond the issue of demand and supply, rising construction costs have also contributed to the crisis. A landlord in Ikeja, who preferred to remain anonymous, blamed the situation on the escalating prices of building materials, which have made constructing new homes increasingly expensive. “Inflation is driving up costs everywhere, and landlords are using rental income as a way to survive,” he said.

Real estate experts have confirmed that Nigeria’s rental market is in the grips of an unprecedented crisis. Lagos-based surveyor and valuer, Olufemi Oyedele, emphasized that the housing deficit, estimated at nearly 20 million units, is a major driver of the problem. Combined with the high cost of building materials, rents in many parts of Lagos have risen almost threefold in the past year. Oyedele pointed out that even completed buildings often remain vacant due to poor enforcement of laws against abandoned properties. “If there were heavy taxes on abandoned properties, landlords would be incentivized to put them to use, easing the market pressure,” he argued.

Abuja-based real estate practitioner Osilama E. Osilama linked the housing crisis to broader economic challenges. He criticized the federal government for failing to mitigate the effects of fuel subsidy removal, which has triggered inflation across all sectors. “The surge in transportation costs has a domino effect, raising prices for food, building materials, and everything in between. This inflation is eroding the purchasing power of Nigerians, making it harder for them to afford housing,” Osilama explained.

He also condemned the abrupt nature of the subsidy removal, calling for a phased approach to ease the burden on citizens. Additionally, he proposed redirecting funds from ineffective poverty alleviation programs to develop robust public transportation systems, which could offset the rising cost of commuting for those forced to live in distant suburbs.

Experts agree that addressing Nigeria’s housing crisis requires comprehensive reforms. Osilama urged the government to tackle underlying economic issues by promoting job creation and sustainable growth while implementing policies to make housing more affordable. “This isn’t just about building homes; it’s about creating an environment where people can live, work, and thrive without being crushed by the weight of economic hardship,” he said.

As rents continue to climb and the housing shortage deepens, the calls for decisive government action grow louder. Without intervention, the gap between demand and supply will only widen, leaving millions of Nigerians struggling to find and afford a place to call home.

The post Rent Soars to Unprecedented Highs Amid Nigeria’s Housing Crisis appeared first on Housing TV Africa.

Countries such as Egypt, Nigeria, and Malawi are at the forefront, responding to soaring inflation rates and currency depreciation with a hawkish monetary stance.

Nigeria: The Central Bank of Nigeria (CBN) raised its monetary policy rate by 600 basis points to 24.75% in March 2024, in response to escalating inflation, which reached 31.7% in February 2024.

Egypt: The Egyptian Central Bank increased the country’s interest rate by 600 bps to 27.25% this year due to inflationary pressures.

Uganda: The Bank of Uganda raised its interest rate to 10.25% in April 2024, despite a marginal decline in inflation from 3.4% to 3.3% in March 2024.

Zambia: The Bank of Zambia hiked the country’s monetary policy rate by 150 bps to 12.5% in February 2024 to steer towards a 6-8% inflation rate target.

READ ALSO: Aviation Minister Confirms Emirates Flights Returning to Nigeria Soon

Kenya: The Central Bank of Kenya maintained its interest rate at 13.00% in April 2024, with the country’s inflation rate at 5.7% in March 2024, down from 6.31% in February 2024.

Mozambique: The Banco de Mocambique cut its interest rate from 17.25% to 16.50% in January 2024, following a decline in inflation from 9.9% in February 2023 to 4.0% in February 2024.

The Gambia: The Central Bank of the Gambia held its monetary rate at 17.00% in February 2024, with the country’s inflation rate at 16.2% in January 2024.

Angola: The Angolan Central Bank increased the benchmark interest rate to 19.00% in March 2024, from 18.00%, due to a 24% inflation rate in February 2024.

READ ALSO: Real Estate Practitioners Seek Partnership to Combat Fraud and Improve Industry Standards

Malawi: Malawi’s central bank raised its benchmark interest rate to 26.00% in February 2024, citing persistent inflationary pressures.

Ghana: The Bank of Ghana reduced its interest rate by 100 bps to 29.00% in January 2024, despite inflation easing to 23.5% in January 2024 from 52.8% in February 2023.

Despite the CBN’s efforts, Nigeria’s inflation remains high, projected to reach 32.63% in March 2024. This raises questions about the effectiveness of monetary policy measures in addressing inflation.

The post African Central Banks Respond to Inflation with Interest Rate Hikes appeared first on Housing TV Africa.

The renowned legal icon argued that the rising prices of goods and services and the devaluation of the naira were creating hardships on Nigerians as the masses laboriously struggled to make ends meet.

Speaking during the sixth induction ceremony of 161 medical doctors 2023 graduating set of ABUAD by the Medical and Dental Council of Nigeria (MDCN) at the weekend , the elder statesman said the inflationary level and volatility of naira which has reached an unassuming rate was adversely affecting manufacturing industries, with the cost of production skyrocketed and putting pressures on consumers.

Babalola said that the current economic situation was pushing many Nigerians deeper into abject poverty and as such propelled some frustrated individuals to venture in criminal activities for survival.

He admonished President Bola Tinubu to implement solution-driven interventions aimed at taming inflation and protecting the naira to alleviate inflationary pressures on Nigerians by encouraging local production of food with financial , security and seedlings support to farmers.

According to him, “Many Farmers have left their farmland now because of kidnappers, something has to be urgently done about the issue of kidnapping and farmers have to be encouraged to go back to their farms.

“It is saddening that Monarchs were killed recently, it is an unusual development; so, what is behind all these is the fact that we have no money, our money has no value, our currency is as worthless as toilet paper, something has to be done about naira and productivity.

“I have seen people especially, in the North and other places who are taking to the streets agitating because of the fact that the naira is getting worse, food prices are high, no employment, and those who get it are not paid. Something has to be done about it.”

READ ALSO: Real Estate Experts Lament Economic Downturn, Call for Government Intervention and Affordable Housing Solutions

Speaking on the continuous migration of young people abroad, Babalola advised the newly inducted 161 medical doctors against running away from the country to practice abroad.

He said that the youths representing the virile segment of the population should be encouraged to stay back and build the country, adding that certain things must be done to discourage the youths from leaving in droves.

“The Japa syndrome is a new development in the country. This syndrome has to stop and the only way to stop it is to increase the salaries and wages of workers, which in my own case I did by increasing the salary of my workers by 35 percent.”

Speaking, the registrar of MDCN , Tajudeen Sanusi who congratulated ABUAD for the feats achieved in the last few years , adding that the private institution has helped in no small way to bridge the wide gap of doctors to patient ratio.

Sanusi advised the new doctors to be professional and disciplined in the course of their career, saying that their expertise were needed to ensure universal health coverage for the nation.

The Registrar encouraged the new doctors not to travel the country but to contribute to nation building, adding that, “ if your teachers in ABUAD had travelled out of the country, you will not see anyone to teach you.

Source: Tribune

The post Hardship: Afe Babalola laments rising inflation appeared first on Housing TV Africa.