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👋 Happy New Week,

As the year winds down, today’s digest focuses on the economic signals shaping housing right now, from public finance to inflation expectations, and what they could mean in the weeks ahead.

Let get into it.

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Cooling Inflation Could Ease Pressure on Nigeria’s Housing Market

Nigeria’s inflation rate could fall into single digit territory for the first time in more than five years, according to economist Ayo Teriba, raising cautious optimism about easing cost pressures across the economy.

Teriba believes inflation is on a clear downward trajectory and could continue moderating into early 2026. If realised, this would mark a major turning point after several years of persistently high inflation that eroded household incomes, increased rent burdens, and drove up construction and living costs nationwide

Naira Holds at N1,950 to the Pound as British Currency Outlook Weakens

The naira remained stable against the British pound this week, holding around N1,950 to £1 as the outlook for the pound softened amid mounting economic pressures in the United Kingdom. The relative calm in the naira pound exchange rate contrasts with the volatility seen earlier in the year and reflects shifting dynamics in global currency markets.

Currency watchers note that while the naira continues to face domestic structural challenges, weakness in the pound has helped limit further depreciation on the naira pound pair.

Population Growth Deepens Nigeria’s Housing Deficit

Nigeria’s rapid population growth is increasingly colliding with the country’s fragile housing system, turning what was once a long‑term development challenge into an urgent social emergency. With the population now estimated at over 220 million and growing by more than 2.5 percent annually, demand for housing is expanding far faster than supply, deepening affordability pressures across both urban and peri‑urban areas.

FX MARKET SNAPSHOT TODAY

USD > NGN

1,482.26

Up by 0.34%

GDP > NGN

1,982.15

Up by 0.04%

EUR > NGN

1,740.75

Up by 0.01%

CAD > NGN

1,076.02

Down by 0.04%

Economy Watch

Nigeria’s Central Bank Raises ₦825bn in Year-End Debt Auctions

The Central Bank of Nigeria (CBN) has raised ₦825 billion in its final debt auctions for 2025, highlighting sustained investor appetite for government securities as the year draws to a close.

The large subscription reflects continued demand for high-yield fixed-income instruments, particularly in an environment marked by elevated inflation, tight monetary conditions, and limited alternative low-risk investment options. Treasury Bills and related instruments remain attractive to institutional investors seeking predictable returns and capital preservation.

Quote of the day:

“Progress is impossible without change, and those who cannot change their minds cannot change anything.” — George Bernard Shaw

Sector Watch Monday

1. Rental Market: Rising Demand Keeps Rents Elevated

Rental demand remains strong across major urban centres, driven by population growth, migration, and limited new supply. Landlords continue to pass higher operating and maintenance costs onto tenants, keeping rents elevated despite broader economic pressures.

2. Policy and Regulation: Calls Grow for Faster Housing Reforms

Industry stakeholders are renewing calls for clearer land administration processes, faster approvals, and expanded incentives for affordable housing development. Without coordinated policy action, experts warn that housing supply will continue to lag demand in fast-growing cities.

HAVE A GREAT DAY 😃

Produced by: Amarachi Okeke

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