In Nigeria today, the rising cost of living has become a relentless force, but nowhere is this felt more acutely than in the skyrocketing cost of rent. For countless tenants, the burden of housing has turned into a daily nightmare, with rent hikes far outpacing income growth and inflation. From Lagos to Abuja and Port Harcourt, the story is the same—escalating rents are pushing families to the brink, turning what should be a basic necessity into an unattainable luxury.
This crisis is not new, but its pace and intensity have reached alarming levels, especially following the removal of subsidies by President Bola Tinubu. NATIONAL ECONOMY observes that while the housing challenge predates the Tinubu administration, the economic adjustments made post-subsidy removal have exacerbated the situation. Today, the nation grapples with a staggering housing deficit of 21 million units, a reality that forces over 60 per cent of the country’s population to live in slums.
At the heart of this crisis is a combination of factors, including explosive population growth and mass rural-urban migration. As rural areas remain underdeveloped, people pour into cities in search of opportunities, but what they often find is a housing market stretched to its breaking point. Despite ambitious government interventions like the “Housing for All by the Year 2000” initiative and the 2006 National Housing Policy, the dream of affordable housing remains just that—a dream—for most Nigerians.
For workers, the reality is even harsher. With meager salaries that barely cover daily expenses, homeownership is out of reach, and even basic rental accommodations are becoming unaffordable. Mortgage rates are sky-high, and government housing schemes, despite their good intentions, have failed to deliver for the average Nigerian. The cost of constructing housing estates is so exorbitant that offering them at affordable rates often results in unsustainable losses for the government.
The challenges in Nigeria’s mortgage system compound the problem. High-interest rates, complicated application processes, and limited access to loans have made it nearly impossible for ordinary citizens to secure financing. Recognising these gaps, private sector players like Converged Dynamics Capital Services Limited are stepping in, introducing innovative solutions like real estate equity funds to inject much-needed capital into the sector. While these initiatives hold promise, they are still in their infancy and require time to make a meaningful impact.
Even with the Nigerian Mortgage Refinancing Company (NMRC) injecting N6 billion into the mortgage market, the deeper systemic issues—low wages, inadequate infrastructure, and inefficiencies—remain largely unaddressed. Experts argue that without a complete overhaul of the housing ecosystem, these piecemeal solutions will continue to fall short.
For many Nigerians, the consequences of this crisis are deeply personal. Abuja resident John Mumuni recalled moving into a two-bedroom home in 2023 at a rent of N800,000 per year. By 2024, his landlord had increased it to N1.2 million, and he has been informed of another jump to N1.6 million in 2025—a doubling of his rent in just two years. “It’s unbelievable,” he said. “How are we supposed to keep up with these increases when salaries are stagnant?”
A similar plight is echoed by Lagos-based teacher Funmi Olatunji. “I rented my flat for N800,000 in 2022. By 2024, my landlord increased it to N1.5 million. I’ve had to take on a second job just to survive,” she shared. “It’s not just the rent—everything is going up. It feels like we’re drowning, with no lifeline in sight.”
Experts attributed the relentless rent hikes to Nigeria’s soaring inflation, which reached a staggering 34.6 percent in 2024—the highest in nearly three decades. Construction costs, driven by expensive building materials and rising interest rates, are skyrocketing, forcing landlords to pass these costs onto tenants. The result? A vicious cycle of unaffordability that shows no signs of slowing down.
Dr. Grace Akande, a real estate economist at the University of Lagos, described the situation as “a perfect storm.” She explained, “Landlords are trying to cope with a high-inflation economy, while tenants’ incomes have remained stagnant. This mismatch is creating an unsustainable housing affordability crisis.”
For low- and middle-income earners, the burden is crushing. Many are being forced to downsize, move to less desirable neighbourhoods, or enter into prolonged disputes with landlords over delayed payments. Esther Okafor, a Lagos-based tailor, lamented, “I’ve had to negotiate payment plans with my landlord twice this year. Even though I eventually pay, the constant pressure is exhausting. It feels like there’s no way out.”
Landlords, too, are feeling the strain. Emeka Eze, a property owner in Enugu, defended the rent hikes, saying, “I understand tenants are struggling, but my costs have doubled—cement, labour, even diesel for electricity. If I don’t adjust the rent, I can’t maintain the property or stay afloat.”
The absence of strong regulatory frameworks has left tenants vulnerable. While some states have enacted rent control laws, enforcement remains weak. Barrister John Ofoegbu, a housing rights advocate, said, “The lack of a national policy to protect tenants is a major issue. Landlords increase rents arbitrarily, and tenants have no legal recourse.”
The government has a critical role to play in addressing this crisis. Expanding access to affordable housing, incentivising private developers to build low-cost homes, and implementing stricter rent control policies are urgent priorities. While the Federal Mortgage Bank of Nigeria announced plans in 2024 to disburse more loans for affordable housing, critics argued that these efforts must be scaled up significantly to make a tangible impact.
Dr. Muda Yusuf, CEO of the Center for the Promotion of Private Enterprise (CPPE), emphasised the need for bold action. “Housing is a fundamental right, not a privilege. Without targeted policies, urban centers will become unlivable for the average Nigerian, deepening inequality and social unrest,”he said.
Experts agreed that while the challenges are daunting, they also present an opportunity for transformation. By prioritising housing as a fundamental right, fostering public-private partnerships, and investing strategically in affordable housing, Nigeria can turn the tide. But achieving this will require visionary leadership, long-term planning, and unwavering commitment to sustainable solutions.
As the crisis deepens, millions of Nigerians are left asking: How long can we endure this relentless cycle? The answer lies in bold, coordinated action that puts the people—and their right to housing—first.