Tenants and house hunters across Nigeria are facing an uphill battle as rental prices in urban centers like Lagos and Abuja have surged by an astonishing 300% within the past year.
This sharp increase, coupled with a dire shortage of available housing, has created a fierce competition where only the highest bidders secure accommodation, leaving many scrambling for alternatives.
The housing shortage has provided landlords and estate agents with an opportunity to exploit the situation. Agents are now charging exorbitant fees for services such as commission, agreements, and maintenance charges, adding further strain on those seeking shelter. The economic hardship gripping the country has only exacerbated the plight of tenants, with many forced to relocate to less desirable and more distant areas in search of affordable housing.
In Lagos, rents for newly constructed one-bedroom apartments in prime locations like Victoria Island, Lekki, and Ikeja GRA now range from ₦1.5 million to ₦3.5 million annually, a staggering increase from ₦600,000 to ₦1.2 million earlier in 2024. Two-bedroom apartments in these areas, which are in high demand but short supply, now cost between ₦5 million and ₦9 million, depending on amenities, while three-bedroom units fetch up to ₦14 million. For those unable to afford these prices, areas like Ayobo, Mowe-Ofada, and Ikorodu have become last resorts, despite the increased commuting costs they entail.
The crisis is no less severe in Abuja, where neighborhoods like Wuse 2, Asokoro, and Gwarinpa have witnessed rents for one-bedroom apartments soar to as much as ₦13 million, depending on size and location. The demand has overwhelmed supply, forcing many to compete for limited options. As a result, landlords in suburban areas have seized the opportunity to hike rents significantly.
One Lagos-based estate agent, Alhaji Sunday Agbabiaka, noted that properties in previously affordable areas like Ipaja and Ayobo have seen rental costs double or triple within a year due to overpopulation and soaring demand. “The demand for accommodation far outweighs the available supply. Landlords know this and are taking advantage of the situation. It’s not unusual to see 10 people competing for a single apartment, which inevitably leads to higher rents,” he explained.
Beyond the issue of demand and supply, rising construction costs have also contributed to the crisis. A landlord in Ikeja, who preferred to remain anonymous, blamed the situation on the escalating prices of building materials, which have made constructing new homes increasingly expensive. “Inflation is driving up costs everywhere, and landlords are using rental income as a way to survive,” he said.
Real estate experts have confirmed that Nigeria’s rental market is in the grips of an unprecedented crisis. Lagos-based surveyor and valuer, Olufemi Oyedele, emphasized that the housing deficit, estimated at nearly 20 million units, is a major driver of the problem. Combined with the high cost of building materials, rents in many parts of Lagos have risen almost threefold in the past year. Oyedele pointed out that even completed buildings often remain vacant due to poor enforcement of laws against abandoned properties. “If there were heavy taxes on abandoned properties, landlords would be incentivized to put them to use, easing the market pressure,” he argued.
Abuja-based real estate practitioner Osilama E. Osilama linked the housing crisis to broader economic challenges. He criticized the federal government for failing to mitigate the effects of fuel subsidy removal, which has triggered inflation across all sectors. “The surge in transportation costs has a domino effect, raising prices for food, building materials, and everything in between. This inflation is eroding the purchasing power of Nigerians, making it harder for them to afford housing,” Osilama explained.
He also condemned the abrupt nature of the subsidy removal, calling for a phased approach to ease the burden on citizens. Additionally, he proposed redirecting funds from ineffective poverty alleviation programs to develop robust public transportation systems, which could offset the rising cost of commuting for those forced to live in distant suburbs.
Experts agree that addressing Nigeria’s housing crisis requires comprehensive reforms. Osilama urged the government to tackle underlying economic issues by promoting job creation and sustainable growth while implementing policies to make housing more affordable. “This isn’t just about building homes; it’s about creating an environment where people can live, work, and thrive without being crushed by the weight of economic hardship,” he said.
As rents continue to climb and the housing shortage deepens, the calls for decisive government action grow louder. Without intervention, the gap between demand and supply will only widen, leaving millions of Nigerians struggling to find and afford a place to call home.
