The 2024 U.S. Election: What Nigerian Investors Should Know

As the 2024 U.S. election approaches, Nigerian investors in real estate and other sectors are watching closely, eager to understand the potential ripple effects on the Nigerian economy and real estate market. The U.S., as one of the largest economies in the world, plays a critical role in shaping global economic policies and trade dynamics. Here’s what Nigerian investors should consider as the results unfold and a new or returning administration sets its policies.

1. Impact on U.S.-Nigeria Trade Relations

The U.S. election outcome could influence trade policies, including tariffs and trade agreements that directly affect Nigeria. A shift toward more protectionist policies, for instance, could raise the cost of importing American-made construction materials and equipment, which could raise real estate development costs. On the other hand, a more open trade approach could increase access to high-quality, affordable building materials, benefiting Nigerian developers and reducing project costs.

2. U.S. Foreign Policy and Aid

U.S. foreign policy plays a major role in the stability and growth of Nigeria’s economy. A supportive policy stance can foster growth in Nigeria through investments and aid programs targeted at infrastructure and energy—two critical factors that directly impact real estate. Increased U.S. funding or involvement in Nigeria’s infrastructure could spur real estate growth, especially in commercial and industrial property sectors. Conversely, a reduced focus on Africa may limit growth opportunities, forcing Nigerian investors to rely more on domestic or regional resources.

3. Strength of the U.S. Dollar and Currency Exchange Rates

The strength of the U.S. dollar is often impacted by U.S. fiscal policies, which are influenced by the sitting administration. For Nigerian investors, a strong U.S. dollar can make it challenging to access dollars for international transactions, affecting real estate investments that depend on imported goods or foreign financing. Monitoring the U.S. Federal Reserve’s policies post-election can help investors anticipate currency fluctuations and plan accordingly.

4. Global Oil Prices and Energy Policies

As a major player in the global oil market, the U.S. energy policy directly impacts oil prices, and by extension, Nigeria’s economy, given its reliance on oil exports. Some policies might favor green energy, which could dampen global demand for oil. This shift could lower Nigeria's oil revenue, leading to reduced government spending and investment in public projects, potentially affecting real estate funding. Alternatively, policies that maintain high oil demand could help stabilize Nigeria’s economy, benefiting the real estate sector through increased government investment and private-sector confidence.

5. Investment Trends and Tech Sector Growth

A U.S. administration that promotes tech innovation and foreign investments could benefit Nigeria’s burgeoning tech and proptech sectors, opening doors for Nigerian real estate to adopt advanced technologies. Increased collaboration between U.S. and Nigerian tech companies could drive smart real estate projects, appealing to investors looking for high-value, tech-integrated properties.

6. Geopolitical Stability and Investor Confidence

The U.S. holds significant sway in global politics. A stable international relationship fostered by U.S. policies can increase investor confidence, leading to more foreign investments in Nigeria. On the flip side, increased tensions or isolationist policies could lead investors to adopt a wait-and-see approach, slowing down real estate growth. Nigerian investors should keep an eye on the administration's foreign relations stance to gauge the potential impact on investor sentiment and funding availability.

Key Takeaways for Nigerian Investors

• Stay Informed: Track U.S. election results and the foreign policy direction to understand potential impacts on Nigerian trade, currency, and economic stability.

• Plan for Currency Volatility: If the U.S. dollar strengthens, consider local investment sources or hedge currency risks.

• Look for Opportunities in Technology: If U.S.-Nigeria tech collaboration grows, explore proptech advancements for real estate projects.

• Monitor Oil Market Policies: U.S. energy decisions could indirectly influence Nigeria’s economy and real estate funding.

The 2024 U.S. election could present both opportunities and challenges for Nigerian investors. By staying informed and proactive, you can make better decisions in navigating the future Nigerian real estate landscape.