Nigeria’s rental market is in turmoil as the average annual rent for a two-bedroom apartment climbs to N2.5m, deepening an affordability crisis that is squeezing households nationwide.
Findings across major cities show wild disparities — from as low as N250,000 in parts of Benin to as high as N20m in Lagos luxury districts — but the upward spiral is consistent. Housing experts warn that the surge reflects both inflationary pressures and chronic supply deficits.
Two-bedroom flats, often regarded as the “middle ground” for families and professionals, are fast slipping out of reach. In Jos, Plateau State, standard units cost between N1.5m and N2.5m, while in Abuja’s prime districts like Maitama and Asokoro, rents stretch to N10m. In Ibadan, previously known for affordable housing, prices have doubled within three years, with some landlords introducing service charges and abrupt hikes.
The trend is starkest in Lagos, Nigeria’s most expensive housing market, where rents now range from N1.5m in Ikorodu to N20m in Ikoyi and Victoria Island. Similar patterns are reported in Port Harcourt, Enugu, Uyo, Kano, and Ogun State, with proximity to city centres or Lagos pushing rates sharply higher.
Beyond base rent, hidden charges such as agency, legal, and service fees further burden tenants, often inflating total costs by up to 15 per cent. Rising demand has also triggered bidding wars in some cities, leaving prospective tenants competing for limited stock.
Experts link the crisis to surging construction costs, inflation, currency instability, and Nigeria’s estimated 28m-unit housing deficit.
“What we’re facing is not random; it’s the outcome of demand and supply struggling against each other,” said Ayodele Olamoju of the Nigerian Institution of Estate Surveyors and Valuers.
“From cement to fittings, prices have doubled or tripled, and landlords are passing these costs to tenants.”
Olorunyomi Alatise, another estate surveyor, described the situation as “unsustainable,” noting that salaries have stagnated while rent obligations soar, forcing many into overcrowded or inadequate housing.
Stakeholders are calling for mass housing schemes, policy reforms to regulate rent hikes, incentives for local building materials, and a transparent rent index to restore predictability. Without systemic intervention, they warn, Nigeria’s rental market could worsen social inequality and displacement.
