By Providence Ayanfeoluwa

The escalating tensions between the United States, Israel, and Iran are placing global oil markets on edge, with significant implications for Nigeria’s economic outlook in 2026, said Managing Director of Legendary Foreshore Mr Victor Ameh.

He pointed out that while the conflict remains geographically distant, the effects are felt in energy prices, exchange dynamics, and fiscal planning in oil-dependent economies like Nigeria.

Ameh said these in a recent research on the “2026 Real Estate Outlook For Investors” warning that the evolving geopolitical situation could deepen existing economic pressures even as it presents short-term revenue opportunities.

Meanwhile, the real estate outlook for 2026 reflect pressures, showing foreign exchange volatility as one of the challenges closely tied to oil market performance.

He said: “When global oil prices fluctuate due to geopolitical tensions, Nigeria’s currency often reacts, affecting import costs across multiple sectors, including construction.

“Building materials, many of which are imported, become more expensive when the naira weakens. This drives up construction costs and can stall projects already operating on tight margins. “Developers are therefore increasingly exposed to global geopolitical risks, even when operating purely within domestic markets.

“Additionally, higher energy costs, linked to global oil price movements, are raising operational expenses for households and businesses. Power generation, transportation, and logistics all become more expensive, further squeezing disposable income.

“This has a direct impact on housing demand. As households allocate more of their income to basic expenses like fuel and electricity, their ability to afford rent or home purchases declines. The result is a tightening of the real estate market, particularly in higher-priced segments.

“The geopolitical situation also influences investor sentiment. International investors tend to adopt a more cautious stance during periods of global uncertainty, especially in emerging markets. This could limit capital inflows into Nigeria’s real estate and infrastructure sectors at a time when funding is already constrained.

“At the same time, there are potential upsides. Sustained high oil prices could improve Nigeria’s external reserves and strengthen government revenue, creating room for increased spending on infrastructure. Such investments, if effectively executed, could support long-term growth in sectors like housing and logistics.”