What do you believe is the single most important factor driving up the cost of living in Nigeria?

In an exclusive interview with The PUNCH, the Chief Executive Officer of Fame Oyster & Co., Olufemi Oyedele, said interest rate hikes would make borrowing more expensive, and slow down construction.

He said, “The high inflation rate in Nigeria signals an oversupply of money in circulation, largely driven by fiscal mismanagement and widespread corruption from previous administrations. The housing sector, which relies heavily on imported building materials, is already under severe pressure due to the soaring foreign exchange rates.

“With rising interest rates, both lending and borrowing, especially for mortgage loans, will be discouraged. Instead, we are likely to see an increase in capital market deposits as part of efforts to absorb the excess liquidity.

“For the average Nigerian, this translates into a challenging period for homeownership. Mortgage costs will rise, and the prices of building materials will continue to soar, putting home construction out of reach for many,” he noted.

He added that more people would likely resort to squatting or overcrowding the already insufficient housing units, as new housing developments (housing starts) were expected to plummet.

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