Housing Crisis: Consumers lament rising accommodation rents in Lagos and Ogun, seek government’s intervention

*Several residents of Lagos and Ogun States of Nigeria lament the increasing accommodation rents, as they seek urgent Legislative and Executive intervention to prevent a deepening housing crisis, described the situation as ‘suffocating’ in recent times

Isola Moses | ConsumerConnect

Amid current inflation and attendant high cost of living across Nigeria, several residents across parts of Lagos and Ogun States of Nigeria have described the increasing rate of house rents as suffocating in recent times.

Concerned consumers have solicited urgent Legislative and Executive intervention to prevent a deepening housing crisis, especially in Lagos, the country’s commercial hub.

In regard to recent steep increases in house rents, several individuals and families have been compelled to relocate from both downtown and outskirts of Lagos State to areas as far as Mowe, Lotto, Ibafo, Shimawa, Agbado and Adiyan areas of neighbouring Ogun for affordable rents.

In separate interviews around the Lagos metropolis during the week, several residents lamented that rent has deeper nearly half—or more—of their annual income, leaving little room for savings or basic needs in families.

It is noted that a 2023 report on Nigeria’s housing market indicated that households spend between 50 and 70 percent of their income on rent—far above the globally recommended threshold of 30 percent.

Nigeria’s housing deficit ‘symptomatic of structural dysfunction’, say consumers

The report described the development as “symptomatic of structural dysfunction, not a temporary spike.”

Speaking on the development in the housing sector in Lagos and parts of Ogun States lately, certain Rasaq Adebanjo, a resident of Ogba, in Lagos, told The Punch that the rising cost of accommodation has become unbearable.

Adebanjo reportedly said: “House rents in Lagos have become too expensive. Some landlords even state that rent increases automatically after three years.

“And that’s if you can find one you can conveniently pay for without it consuming your entire yearly income. It’s really hard,” he said.

A (National Youth Service) Corps member, Mercy, also a resident of Lagos State, recounted her shock while searching for accommodation shortly after arriving in Lagos for the mandatory one-year National Service.

Mercy related her experience this way: “When I came to Lagos, the first thing I needed was accommodation.

“But an agent asked for N1.5 million for a mini flat in Surulere—not even on the Island. I was shell-shocked.”

She also said: “I later realised I wasn’t alone after colleagues shared similar experiences.

“Even when three of us tried to pool money together for an apartment, we still couldn’t afford it.

“Meanwhile, we go to work daily, earning a N77,000 allowance and a N30,000 stipend from the company where I’m serving.”

Peter, a fresh graduate, who recently relocated to Lagos in search of employment, said he currently squats with a relative in Ogun State due to high rents in Lagos State.

Peter stated: “At the moment, I’m staying with a relative in Ogun State. Transport alone is extremely expensive.

“I still don’t understand how people adapt to this in Lagos.”

Likewise, Damola Hafiz, a banker working at Obalende, on Lagos Island, warned that the comparatively high costs of accommodations situation could worsen without a decisive action to protect consumers.

Hafiz was quoted to have said: “Last year, I paid N800,000 for my rent. Early this year, my landlord informed me that the new rent would be N900,000 for a single room in Ketu.

“When I said I couldn’t afford it, he asked me to move out. After seeing the reality during house-hunting, I had to return to beg him. It’s very hard these days.”

Another tenant simply identified as Moses, who is resident in Ikeja, said rising living costs have made saving nearly impossible these days.

Moses explained: “When someone earns N300,000 monthly for years and cannot boast of N50,000 savings at year-end because everything goes into food, rent, and transport, it leads to frustration and desperation.”

Dilemma of same income and higher rent, cost of transportation

In regard to the need for strong political will on the part of the leaders, Ayodele Adio, an aspirant for the Lagos State House of Assembly (LSHA) seat in Eti-Osa, on Lagos Island, described the situation as a “rent crisis.”

He noted that many working residents spend between 60 and 70 percent of their income on rent and transportation combined.

The political aspirant said: “When people are spending almost all their earnings just to keep a roof over their heads and get to work, something is broken.”

Referencing inflation data released by the National Bureau of Statistics (NBS), Adio proposed tying rent increases strictly to official inflation rates in the Nigerian economy.

According to his proposal, if inflation stood at 10 percent in the preceding year, landlords would only be allowed to increase rents within that margin, with minor adjustments based on location.

The Lagosian also pledged to sponsor a legislation to cap agency and legal fees at five percent, mandate a minimum 12-month notice before rent increases take effect, and restrict rent hikes to once every three years.

Adio further solicited stricter regulation of short-term rental platforms, such as Airbnb.

He argued that their rapid expansion has reduced the supply of long-term residential housing.

“These are short-term stabilisers. The real problem is supply,” said he.

Consumers advocate mortgage reforms

Adio advocated facilitating or constructing at least 20,000 housing units annually over the next decade to ease market pressure.

The politician further emphasised that the Nigerian Government must take a more active role in housing delivery.

He, however, acknowledged that “land costs are high, building materials are expensive, and the cost of capital is rising.

“If only the private sector builds, prices will continue to climb.

“Government must intervene massively.”

Adio as well advocated mortgage reforms to enable working-class residents to access long-term financing at affordable rates.

He stated: “Reducing rent burdens, improving transportation, and strengthening public services will free up income for households, stimulate businesses, and promote economic growth.”

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