Market News

Residents of Lagos State and Federal Capital Territory (FCT) have decried the astronomical rise of house rent in the territory which has left many families with the ordeals to relocate to suburbs, boundary communities and hinterland for shelter.

Meanwhile, some landlords who spoke to LEADERSHIP blamed the rent ordeal situation on the current state of the economy even as they stated that the high cost of building materials and reinforcements used for the construction, as maintenance of buildings are no longer affordable in Nigeria. Because a building goes through maintenance throughout its lifespan, some landlords say it is no longer an easy task.

Checks by LEADERSHIP show that, rents in Lagos have now reached an all-time high with a self-contained Mini flat costing as high as N800,000 to N1 million while a two-bedroom apartment is now given out at N1.5 million to N2 million, depending on the location in the city centre.

The situation is not unconnected to the rising inflation in the country, as well as the rising cost of building materials, which has forced many landlords to increase their rents arbitrarily.

It has subsequently led to many families and households relocating to other suburbs and outskirt communities like Arepo, Mowe, Ifo, Sango, Ikorodu, Akute, Magboro where the rents are lower and slightly affordable.

Findings by LEADERSHIP correspondent who spoke to some tenants and landlords in Lagos, Ogun States and FCT shared their views on the current cost of rent in the territory.

A tenant, Wale Sowemimo who is a civil servant in Lagos, told LEADERSHIP how the rent for his Two-bedroom apartment was raised from N500,000 to N1.5 million within the space of six years.

“I got into this one-bedroom flat in 2019 January, and I was paying N500,000 as annual rent. Fast-forward to January 2025, I am now asked to pay N1.5 million which is an increase of over 100 per cent.

We as tenants tried to understand the rationale behind that but our landlord said anyone who can’t stay should leave. The situation is just terrible, he said.

Another civil servant who spoke on condition of anonymity told LEADERSHIP he can no longer afford to pay his rent due to his low disposable income even as he plan on moving to suburbs and developing rural communities in Ogun State to enable him access affordable accomodations for his family.

Another tenant, Emmanuel Ugbekile who lives within Ajuwon/Akute boundary of Lagos and Ogun State said the lowest-priced self-contained room in the area cost N700,000 while a Two-bedroom flat goes for as high as N1.5 million.

He said, “Immediately the administration completed the Ajuwon road and bridge linking towards Ojodu Berger the price of rent would increase again. Before now, a one-bedroom Mini flat could cost about N350,000 but now, if you don’t have from N800,000 upwards, forget about it, because even with N1 million you will struggle to get a comfortable house.

“More frustrating is the fact that aside from the rent, agents take inspection fee and agency fee from you which is about 10 per cent, caretakers take legal fees and others and at the end of the day, you find yourself paying so very much.”

Similarly, a tenant in Ogba whose name is Kelvin Nwosu, also told LEADERSHIP that this year will be his last year staying in Ogba as he plans to move to either Mowe or Magboro to find cheaper accommodation.

“I first rented a two-bedroom house in Ogba in 2018 for which I was paying N1 million as rent per year. But before I even entered the house, the agency, inspection and legal fees raised the amount to about N1.7 million. Just last December our landlord sent us a notice increasing our rent from N1 million to N2.5 million.

“As I am speaking to you now, I have asked my brother to look for a house for me either in Mowe, Arepo and Magboro axis because my family is growing and my wife just gave birth. I can no longer live in a one-bedroom flat and I can’t afford that ridiculous amount in Ogba” he said.

Another tenant in Jahi District of Abuja, Sabena Daniels, told LEADERSHIP that the landlord of the self-contained room, for which she is paying N1 million, has now sent a notice increasing the rent to N1.8 million with a threat of eviction by next year.

“The increase surprised me owing to the fact that I wasn’t even up to a year in the house. The worst part is even areas like Kubwa, Lugbe and others where one is thinking that rent will be cheaper, it is no longer cheap,” she noted.

Meanwhile, some landlords who spoke to LEADERSHIP blamed the precarious situation on the current state of the economy which has made things difficult for them.

A landlord, Uche Kalu, who owns a rented apartment in Mabushi complained that “the cost of erecting a new building in Abuja has gone up by over 200 per cent from what it was some months ago, and maintaining the old ones has also been very difficult.

Another landlord with a rented apartment at Kubwa Phase 4 said, landlords should not be blamed but the government.

“Major building materials such as, sand, cement, granite, concrete, wood, Plaster of Paris (PoP), glass, paint and plumbing materials are now beyond the reach of the ordinary man.

“A 50kg bag of cement, for instance, is now sold for between N10,500 and N11,000, which is more than three times what it was sold in the past. Tell me how we landlords will survive?,” he said.

Asked why landlords allowed agents to collect agency, inspection and legal fees, another landlord, Bright Bamidele said, most landlords interfaced with their tenants through lawyers.

“As professionals, these lawyers also charge legal fees for any tenancy agreement. As for the agents, most of them do that on their own accord not necessarily assigned by the landlord. Most of the agents feed from these agency fees, hence, that’s why the situation is like that and the landlords can’t do much about it,” he said.

Reacting to the development, the immediate-past national president of the Real Estate Developers Association of Nigeria (REDAN) Aliyu Wamakko, blamed the high cost of building materials for the skyrocketing rent.

He said: “There is nothing that has not risen in the market, including the price of food items. So, the rising cost of rent is what we are experiencing now because of the economic downturn. You need to understand that about 90 per cent, of building materials are imported. So, how do you expect affordable rent?

“What is also happening with the exchange rate, which is a major determinant in the importation of these materials: So, the challenge is just too much.

“Another issue is that REDAN passed a Bill to regulate real estate practice in Nigeria so that it can only be handled by professionals, unfortunately, it couldn’t get presidential assent, so, that is why we are where we are today,”

Also, the executive director of the Housing Development Advocacy Network, Barr. Festus Adebayo, noted that, one of the major issues regarding rent in Abuja is the fact that there is no law regulating rent in the FCT.