Rising Diesel Prices Push Up Property Rates in Nigeria

A report by Estate Intel indicates that rising diesel prices in Nigeria are significantly impacting property rates. The report highlights that the ongoing US-Iran conflict has led to increased oil prices, which in turn has inflated energy and construction costs.

Diesel prices rose from N1,300 in January to N1,700 in April 2026, contributing to higher transport costs for raw materials and ultimately reducing developers' profit margins. As a result, property sale prices are expected to increase.

John Oamen, Chief Executive Officer of Cutstruct, stated that while the tension around the Strait of Hormuz has not yet directly impacted Nigeria's construction supply chain, it poses indirect risks, including higher freight costs and insurance premiums. The report also notes that oil revenue may stimulate demand for property assets, despite rising debt service costs.

Overall, the situation is expected to extend project timelines and increase operational costs across the real estate sector.