Rent Shock: Inflation Fuels 80% Hikes, Deepens Nigeria’s Housing Crisis

Nigeria’s rental market is entering one of its most confrontational phases in decades as surging inflation, stagnant wages and a deepening housing shortage push tenants into rent defaults and embolden landlords to impose sharp increases across major cities.
The steady rise in house rents is intensifying friction nationwide, with the cost-of-living crisis colliding with weak purchasing power, rising construction costs and poor enforcement of tenancy laws. In Lagos, the country’s commercial hub, rental prices have climbed steeply over the past 18 months, with estate agents reporting increases of between 40 per cent and 80 per cent in neighbourhoods such as Lekki, Ajah, Yaba and Surulere. Two-bedroom apartments that rented for about ₦800,000 two years ago now command between ₦1.4 million and ₦1.8 million, forcing many tenants to renegotiate payment terms or vacate their homes.
Housing analysts estimate Lagos’ housing deficit at more than three million units, a shortfall that has created a landlord-dominated market in which tenants have limited bargaining power.
That imbalance has been amplified by inflation and rising construction and maintenance costs. Prices of key building materials, including cement, have multiplied in recent years, while labour costs have surged, prompting landlords to say rent increases are necessary to preserve asset value.
Property owners also cite rising property taxes and operational expenses. In many areas, landlords provide private security, borehole water and alternative power supply because of failing public infrastructure, costs that are routinely transferred to tenants through higher rents and service charges.
For tenants, the impact has been severe. Sudden rent hikes, sometimes doubling within a single renewal cycle—have become increasingly common, often with little notice. Many households say the increases have destabilised their finances, forcing difficult trade-offs between housing, food and healthcare.
Tunde Lawal, a Lagos-based housing analyst, said accommodation has effectively become unaffordable for many households. “Housing has become a luxury. Families are struggling to feed and stay healthy. Rent now competes with survival,” he said.
The pressure has triggered forced relocations, with tenants moving from central and semi-central districts to distant suburbs where rents are marginally lower. The shift, however, comes with longer commuting times, higher transport costs and reduced access to jobs and social services.
An industry report by a private housing consultancy estimates that about 80 per cent of Nigerians live in rented accommodation, with many spending more than half of their income on rent. The report describes Nigeria as one of the most active rental markets globally, but one characterised by frequent landlord-tenant disputes.
Speaking to NATIONAL ECONOMY, estate consultant Musa Adeyemi, said conflicts often begin with rent defaults or increases and escalate quickly. “In many cases, both parties end up in court, which only worsens relationships and leads to evictions,” he said.
Tenants across Lagos recount growing hostility. In Olodi-Apapa, a commercial bus driver who identified himself simply as Kunle said his landlord raised rent despite widespread economic hardship. “People are barely eating, yet rent keeps going up,” he said. “When I said I couldn’t pay, he threatened court action. That’s how tense things have become.”
In Ejigbo, Samuel Ojo said his rent was increased shortly after the property changed ownership. “The new landlord didn’t care about our history or the economy,” he said. “When I complained, I was told Lagos is not for everyone.”
Beyond rent hikes, tenants complained of what they described as exploitative practices, including excessive service charges and opaque billing, particularly for electricity. In shared apartments, some residents alleged that landlords inflated power bills or demanded payment without providing utility statements.
A primary school teacher in Ifako-Ijaye, Bukola Olufeko, said his three-year tenancy ended after a 30 per cent rent increase he could not afford. “My salary didn’t change, but the rent did,” he said. “I had no option but to leave.”
Landlords, however, argue they are equally squeezed by the economic downturn. Industry practitioners say many landlords depend entirely on rental income, with a significant number being retirees or individuals without stable employment. “Landlords buy from the same market as tenants,” Adeyemi said. “They face the same inflation, rising food prices and energy costs. Maintenance is now extremely expensive.”
The pressure extends beyond low-income areas. In serviced estates across middle- and high-income neighbourhoods, rising diesel prices and energy costs have forced estate managers to increase power tariffs and cut supply hours, adding to residents’ financial burden. Some estates have recorded electricity tariff increases of more than 25 per cent in recent months, estate managers said.
Despite the Lagos State Tenancy Law of 2011—which limits advance rent payments and outlines notice periods for rent reviews—enforcement remains weak. Many tenants are unaware of their rights, while others fear retaliation in an oversubscribed market. The Lagos State government said it is reviewing tenancy regulations to strengthen protections and has urged tenants facing unreasonable increases to seek redress through the courts or alternative dispute resolution centres, noting that landlords cannot evict tenants while disputes are under adjudication. Tenants have also been advised to report violations to the Lagos State Real Estate Regulatory Authority.
Mediation experts litigation often worsens tensions. “With the economy this bad, both sides need restraint,” a Lagos-based property lawyer said. “Landlords and tenants depend on each other. Escalation helps no one.”
Further findings by NATIONAL ECONOMY showed that friction is intensifying as the cost-of-living crisis deepens. Landlords are increasingly jittery over tenants’ inability to pay rents, while tenants are angered by what they describe as arbitrary increases.
Reacting to the trend, Chudi Ubosi, chairman of the Association of Capital Markets Valuers (ACMV), said virtually every location and commercial development type is affected by rent defaults. “The adverse effects are hitting every business, so all businesses are reviewing strategy on their operations as income is negatively impacted,” he said.
Ubosi said the industry does not discriminate against tenants but applies what he described as “diligent standards” set by property owners. “That’s not discrimination. It’s setting the bar for the quality of tenant a landlord requires,” he said. “While landlords are naturally finicky about who they let their properties to, this has not changed due to inflation.”
The pattern is not confined to Lagos. In Abuja, rents in Maitama, Wuse II, Gwarimpa, Apo, Gudu, Guzape, Garki and Lokogoma have risen by between 30 per cent and 50 per cent. The same goes for Port Harcourt. Across these cities, wages have failed to keep pace.
Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), described the crisis as structural. “This is not about irresponsible tenants or greedy landlords. Prolonged inflation and weak purchasing power have broken the affordability equation,” he said.
Data from estate surveyors showed many households now spend between 40 per cent and 50 per cent of monthly income on rent, well above the internationally recognised affordability threshold of 30 per cent. Landlords counter that rising prices of cement, steel, labour, energy and security services have pushed maintenance costs higher, eroding real rental income.
The strain has shortened rent review cycles, with many landlords now reviewing annually rather than every two or three years. David Ibikunle, a Lagos-based estate surveyor, said the compression has changed tenant behaviour. “Tenants barely recover from one increase before another comes. That fuels anger and resistance,” he said.
Lawyers told NATIONAL ECONOMY that tenancy disputes—ranging from arrears to illegal eviction attempts—are rising. David Olemba, an Abuja-based property lawyer, said economic pressure is pushing some landlords outside legal procedures. “Tenancy laws are clear on notice periods and eviction processes, but enforcement is weak,” he said.
In Abuja and Port Harcourt, similar protections exist, yet tenants often lack the resources to challenge unlawful actions. Chinedu Okafor, an Abuja-based legal practitioner, said vulnerability is increasing. “When tenants default, landlords see it as justification for self-help. That’s where conflict escalates,” he said.
With inflation elevated, interest rates high and housing supply constrained by financing costs, analysts expect rent pressures to persist into 2026 unless macroeconomic stability improves and housing delivery accelerates. Yusuf warned of policy risks. “Without inflation control, cheaper construction finance and rental housing incentives, this conflict will deepen. Housing is becoming the sharpest edge of Nigeria’s cost-of-living crisis,” he said.