Cost of building materials, insecurity push up rent

The increase in rent is once again on the front burner across major cities in the country, Weekend Trust can report. Checks show that inflation, high cost of building materials, increasing taxes, inflation, population influx, low purchasing power and persistent insecurity in some parts of the country as major reasons behind the current hike with […]

The increase in rent is once again on the front burner across major cities in the country, Weekend Trust can report.

Checks show that inflation, high cost of building materials, increasing taxes, inflation, population influx, low purchasing power and persistent insecurity in some parts of the country as major reasons behind the current hike with many attributing the high rents in the country to increasing housing crisis, driven by high demand, scarce affordable housing, and rising inflation. This has led to significant increase in rent across the country, with some cities like Lagos and Abuja experiencing average annual rents running into millions for a studio apartment or two-bedroom flat and even higher in prestigious or highly luxurious areas. With many Nigerians struggling with scarce resources and housing affordability, a good number of them have had to make difficult choices in moving further away from work or living in inadequate conditions. For instance, in Abuja, Nigeria’s capital city, population growth is stretching the city’s housing limits as many low- and middle-income residents are now forced to move to densely unplanned settlements and suburbs due to high rents.

Data show that the Federal Capital Territory’s population is growing by over 4.6 per cent annually, making Abuja one of the fastest-growing cities in Africa. However, the territory’s housing delivery has not kept pace with this population growth rate as a good number of FCT residents have been priced out of formal accommodation, leaving them in slums, suburbs or neighbouring states.

Nigeria’s national housing deficit, according to the Federal Ministry of Housing and Urban Development, stands at about 16 million units though experts peg the figure closer to 28 million.

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To close this gap, the government says the country must build at least 550,000 housing units annually over the next decade at a cost of more than N5 trillion each year.

In parts of Abuja, rents for single rooms have risen by more than 100 per cent this year, while landlords now demand two years’ payment upfront.

For many, that has meant retreating to the city’s fringes where land is cheaper but largely unplanned and where basic amenities like water, roads and waste disposal are absent.

With similar scenarios across the country, speaking to our correspondent, one of the property owners in Maiduguri, Malam Hassan, noted two factors that contributed to the hike in the house rent.

“One, we are faced with the high cost of plots of lands, building materials and labour. Sometimes you will give your house to a careless tenant that would destroy it. Some will even pack out without giving notice and you will find the house completely destroyed.

“Secondly, agents contribute almost 80 per cent to the hike because they will tell you to buy or build a house at certain locations and they will speculate the rent even before the house is ready.

“At times it will sound impossible when they call the price, but if you give them the chance they will even surpass that target. Nobody is happy with the way things are going, but we just have to live with it for some reasons,” he said.

 

Landlords/agents speak

A landlord at Jabi, Abuja, Emmanuel Chidi, linked the high rent to expensive building materials in the country.

He said, “Building materials are expensive. In April, a bag of cement was N4,500, now it is N9,500. You have not included transportation to your site. Roofing sheets are also expensive. How much do you then expect me to fix the rent? 

“To sink a borehole costs between N2 million and N3 million. To get an electricity metre is about N170,000 for one. When you put all these together, you will realise that what tenants pay is small. They should understand that the cost of building materials is high,” he said.

Another landlord, Dele Sodiq, however, noted that the hike in rent was due to the population influx into the FCT.

“People are relocating from states to Abuja. Of course, it is expected that the cost of house rent would increase.

“No house owner is ready to accommodate tenants who cannot pay rent.”

He also noted security as another reason for the hike, saying, “Security is another factor. House owners pay for security monthly. Where do you expect us to get money to pay our monthly bill? It is from the rent.” 

Julius Odion, another landlord, attributed the increase in rent to the economic state of the country.

“The rise in the cost of building materials and construction has been a major factor for the increase in the value of the property and rent,” Odion told one of our reporters who disguised as a prospective tenant.

A Wuse District landlord, Paschal Chukwu, said tenants were not being fair to landlords. “My tenants have been complaining that I increased rent, but the truth is that they are not considering the fact that landlords also go to the same market as themselves.

“Yes, we didn’t build the houses now, but with the price of everything rising, we too have to increase ours because it is our business and we have to survive,” he said.

Adeyemi Folorunsho, a Garki District landlord, is however, of a different view as he notes that not all landlords could be considerate, which he considers inhumane.

“As landlords, this is the right time to protect our tenants. During the COVID-19 crisis in 2020, I knew how difficult it was to pay rent; so, I gave my tenants a subsidy for their rent. I intend to do so again. However, not many landlords cannot do that,” he said.

A landlord in the Kpansia axis of Yenagoa, Mr Davis Apangala, told Weekend Trust that the current cost of building materials is the reason house rent is soaring, adding that the government  should prevail on building material dealers to reduce prices.

He said: “As we speak, how much is cement? How much was it two years ago? If you are a landlord you will buy a bag of cement at N10,500, a bundle of Cameroon sink at N450,000, a trip of granite at N300,000 and sand at N50,000 etc and still rent a house as it was three to five years ago?

“Don’t forget that real estate is business and anybody that is into it wants to provide. Do you know how much is being paid to the government for development fees, and even community fees? That’s why rents are high.”

 

Insecurity in neighbouring states reason for hike in Kano

In Kano, the situation is not different as tenants continue to express frustration over the cost of rent.

It is no longer news as many Kano landlords have doubled the rent of their property, forcing tenants to pay through their noses. Many attribute the hike to the influx of people from Katsina and Zamfara states fleeing persistent bandits’ attacks.

The relative peace being enjoyed in Kano, coupled with its bustling business activities, attracts people into the state.

Isa Mustapha who relocated from Maiduguri, Borno State to Kano because of insurgency, said he rented a shop for his cap-washing business (wankin Hula).

Mustapha says he pays thirty thousand naira as annual rent which he considers expensive compared to what he used to pay back home in Borno State.

“ I have my personal house in Borno, but I rented and converted this shop into my workshop and home because rent in Kano is expensive. My neighbours pay higher.” Said Mustapha.

Hamza Abdullahi, a landlord, however noted that the influx of people from states hit by insecurity  was not responsible for the rise of tenancy rates in Kano.

“ I have an uncompleted house which a tenant showed interest in paying ₦200,000 as rent. I Initially agreed but when I realised the cost implications tocomplete the house, I asked for N300,000 instead. Kano is a commercial hub and therefore attracts people from all directions.the high cost of building materials, for me is the core factor driving the rise in rent.” said Abdullahi.

 

Tenants lament

Speaking to Weekend Trust, a tenant at Dutse-Alhaji in Bwari Area Council, Mr Theophilus Garba, said his 2-bedroom rent, which was N800,000 in the past three years, was suddenly increased to N2 million with minimal renovation works carried out on the building.

He lamented that the situation forced him to move to Madalla, Niger State, where he currently pays a lower amount, while lamenting that the situation has inconvenienced him and his family.

Amaka Ani, another resident blamed the rising cost of house rent to the influx of internet fraudsters, popularly referred to as “yahoo boys”.

She said the fraudsters willingly part with any amount for house rent and landlords would rather have them on their properties than average income earners.

“Yahoo boys have  made life difficult for some Abuja residents because they don’t earn their money legitimately, so any amount landlords place on rents, they willingly pay, thereby encouraging them to believe that everyone has money.

“It is a very sad situation that requires government’s intervention,” she said.

Another resident who resides in the Wuye district of Abuja, Bulus Manasseh, lamented the hike in  house rent, noting that his rent increased by almost 300 per cent.

“We love what the FCT minister is doing in terms of infrastructure, but it is becoming something else, especially considering that landlords are now taking advantage of available access roads and infrastructure to increase rents.

“My house rent used to be N1.2 million, but immediately the Wuye bridge was constructed, the rent increased to N3.5 million and the landlord asked us to vacate if we could not pay. Those of us who could pay stayed, but many other tenants left. It is ridiculous and unacceptable,

“The government should come to our aid and do something about this arbitrary rent increase,” he said.

In Maiduguri metropolis, property in highbrow areas, including old and new GRA, Legacy Estate, Pompomari bypass, Damboa road, Polo, Jiddari, Lagos Street and Giwa Army Barracks are expensive.

An agent at Pompomari bypass, Muhammad Yobe, said the rent for a 3-bedroom flat now goes for N1.5 to N2 million.

“As I speak, a landlord has handed me a 3-bedroom flat to look for a tenant that would pay N 1.5 million per annum, and he insists on two years payment.

“Now, I got three people that are willing to pay for a year but he refused to collect the money. In this situation, how many people can afford N1.5 million, let alone coughing out N3 million?” He asked.

At the legacy housing estate, a tenant, Aisha Abubakar, said the rent had within two years increased by over 300 per cent.

“In 2023, we rented this 3-bedroom flat (ground floor) at N400,000 per annum, then the rent was increased to N750,000 in 2024 and N1.2 million in 2025. I intend to relocate because I can’t afford it,” she said.

Another tenant, Abdulkareem Sani, said he was paying N750 but the owner suddenly asked me to leave the property.

“He gave me a notice to vacate his property next month, and I learnt that he already got someone to pay higher than what I was given. I tried some empty houses here but the rent is outrageous. They are calling N1.2 million, and in most cases, two years down payment,” he decried.

Another property agent at Damboa road, Umar, a lawyer, told our correspondent that the least one can rent a 3-bedroom flat in the area is N1.5 million.

One of the tenants, Adewale George, told our correspondent that the frequent increase of his house rent by the landlord forced him to leave the area.

“The man just came and did some little renovations and the next thing will be a notice of rent review. It is a 5-flat apartment, and the rest of the tenants were non-governmental organisation (NGO) staff.

“So, after the operation of NGOs folded up, they left and I was left alone in the house. We were paying N250,000 when I came in, but he gradually raised it to N350,000, N500,000 and N700,000. I left when he approached me with another review plan,” he said

 

‘Our earnings can’t offset rents anymore’

Some residents of Port Harcourt and Yenagoa, capitals of Rivers and Bayelsa states respectively, continue to lament the rising cost of rents in the states, saying their monthly earning can no longer afford other necessities due to current exorbitant house rents.

Already, most residents of both cities are taking economical measures by relocating to temporary wooden houses called in the local parlance ‘batcha,’ which is less expensive compared to normal buildings.

The batcha is constructed using woods as blocks and temporary roofings using less expensive sinks, with cement or wooden floors.

A resident of Elekahia in Port Harcourt, Gospel Efiok, told Weekend Trust that a single room in the area goes for N144,000 a year, while a selfcon costs between N300,000 and N350,000 a year, and a two-bedroom flat goes for N500,000 to N600,000.

According to him, the price is higher in some highbrow areas, such as Government Reserved Areas.

He said the high concentration of people in the urban areas made the situation worse as an increase in the number of residents made the demand for rent higher; and property owners now leverage on that to hike rents.

Similarly, in Lagos, findings showed that rent surged by 80 to 100 per cent in the last one year.

From Ikorodu to Ketu-Ikosi, Ogba, Agege to the highbrow areas like Lekki and other parts of Lagos, residents groan under the crushing hike in rent.

Our correspondent gathered that in Somolu, Surulere, Agege and Bariga, a room-and-parlour self-contained apartment now costs between N1 million and N1.7 million per year.

This amount excludes additional charges, such as agreement, commission, caution and legal fees.

In other parts, a single-room self-contained unit now rents between N700,000 and N1.2 million annually, with extra fees ranging from N500,000 to N700,000.

“Ketu-Ikosi used to be N500,000 and N400,000, but it is now N700,000 and N800,000. In some parts of Lagos Island, which used to be N1.5 million or N2 million, it is now up to N3 million and N4 million. Everything has scaled up,” a real estate expert, Ganiyu Idris told Weekend Trust.

 Idris blamed the high cost of rent on the hike in the cost of building materials.

“The cost of building materials has gone up due to the dollar rate. In the last one year, the dollar rate has gone up from N800 to N1,500, N1,600 and currently, about M1,400. So, everything has gone up.

“One tonne of iron was N400,000, but now, it is N1.5 million. From N5,000, a bag of cement moved up to N10,500. Everything is high,” he lamented.

The realtor said that in most cases, those involved in the real estate business provided access roads, security and other necessities, which also dictate the cost of rent. 

Asked if the hike in building materials also affects owners of old houses, he responded: “Are you saying that because the houses are old, the rent should remain the same? It doesn’t work that way.

“As a landlord, you charged N100,000 for an apartment, and from the money you would buy a bag of rice and go to work, but the N100,000 can no longer cater for your immediate needs; so definitely, you have to increase the rent.

“This doesn’t only affect rent, everything has gone up. What about the cost of transportation, food and others? Once the cost of feeding goes up, rent will also go up too.” 

He called for a mass housing scheme where all levels of Nigerians can benefit.

 

Lagos, Bayelsa assemblies wade in

Recently, the Lagos House of Assembly asked the state government to fully enforce the tenancy law of 2015 to tackle indiscriminate hike in rents.

In a motion during plenary, the member representing Ajeromi-Ifelodun constituency I, Sa’ad Olumoh, said there was a need to curb excessive rent increments that have worsened the housing crisis in the state.

He cited section 37 of the tenancy law, which prohibits unreasonable rent hikes and provides legal recourse for tenants.

“Excessive increment of rents by landlords in Lagos State has led to the increase in homelessness,” Olumoh said.

Supporting the motion, the member representing Surulere I, Desmond Elliot, said rents in his constituency had spiked by as much as 200 per cent.

He said the increase was as a result of infrastructural development in the area, adding that gentrification should not justify the spike in rent.

Elliot called on the relevant agencies to penalise landlords for raising rents because of decent facilities provided by the government.

He demanded a review of the law, adding that the provision that mandates tenants to pay two-year rent upfront, alongside commissions and legal fees, should be reviewed.

The Speaker, Mudashiru Obasa, said the issue was beyond rent but also affected the escalating cost of building materials.

He suggested the need for dialogue with real estate stakeholders to find sustainable solutions.

Obasa subsequently directed the acting clerk of the House, Abubakar Ottun, to forward a clean copy of the resolution to Governor Babajide Sanwo-Olu.

Similarly disturbed by the hike in rents in the state, the Bayelsa State House of Assembly resolved to initiate a tenancy regulation framework that would compel landlords, rather than tenants, to bear the burden of agency and legal fees in property transactions across the state.

The resolution followed a motion by Tare Porri, a lawyer and the member representing Ekeremor constituency 1. He expressed deep concern over the rise in rent and exploitative charges imposed on tenants in Yenagoa and other urban areas.

Porri noted that the hike in rent was unsustainable for civil servants, low-income earners and young families.

To address the situation, the lawmaker called for the enactment of a tenancy regulation law and the establishment of a rent control and housing regulation committee to stabilise rent targets, monitor compliance and mediate landlord-tenant disputes.

The motion, seconded by Dr Charles Daniel, representing Brass constituency 3, urged the Ministry of Information to embark on public enlightenment to educate landlords, agents and tenants on fair and lawful housing practices.

The Assembly subsequently mandated the Committee on Housing and Urban Development to investigate the causes of the sharp rent increases and recommend immediate actions to protect the rights and wellbeing of residents across the state.

 

Tracking housing schemes

 Weekend Trust recalls that during the former President Goodluck Jonathan era in 2014, the federal government had planned to deliver a minimum of 100,000 housing units under the Nationwide Workers’ Housing Scheme.  The then president explained that the launch of 10,000 units, comprising different house types, was part of his administration’s programme to provide affordable housing to Nigerian workers. The 36 states of the federation were expected to benefit from the scheme.

Also, the then Minister of Lands, Housing and Urban Development, Mrs Akon Eyakenyi, said that in January 2015 the president would be performing another official groundbreaking ceremony of the first batch of 10,000 affordable homes to be provided under a public-private partnership housing delivery scheme of the Federal Ministry of Lands, Housing and Urban Development, with the support of the Federal Ministry of Finance and other key stakeholders,” she said.

However, stakeholders said the scheme could not sail through as he did not win his reelection in the 2015 general elections.

In the same vein, two years into the late President Buhari presidency, precisely in 2017, he launched the Family Home Fund Limited (FHFL) as a social housing intervention programme with the mandate to raise and invest N1.3 trillion ($3 billion) within five years for the development of 500,000 homes for people on low income.

The Fund financed the development of about 11,700 homes for low-income earners across several states in Nigeria, including Delta, Ogun, Kano, Nasarawa, Kaduna, Yobe, Bauchi, Borno, Adamawa, and created up to 64,000 direct and indirect jobs in the process. However, it took the administration almost six years to achieve this.

In July 2021, the Fund completed the issue of N10 billion under the N30 billion Sukuk issuance programme, targeting affordable housing development. That programme was the first ever certified corporate Sukuk issued in Nigeria; and it was expected to provide the necessary support for FHF’s goal of providing affordable homes across Nigeria.

Although the funds impacted many lives, according to the Association of Housing Corporation of Nigeria, especially in the northern part of the country where it has done social housing most, it could not deliver on its mandate of 500,000 in five years.

 

Housing scheme on course – Govt

Reacting to enquiries on the housing schemes currently embarked upon by the Federal Ministry of Housing and Urban Development through the Director of Press, Badamasi Haiba, said construction is ongoing and the ministry has approved uniform sale prices for housing units under its Renewed Hope Estate programme across all the states of the federation.

He said the housing units, which comprise one, two and three-bedroom semi-detached bungalows, were part of the ministry’s efforts to make homeownership more accessible and equitable for Nigerians, with the approved selling prices for a one-bedroom semi-detached bungalow going for N8.5 million, a two-bedroom semi-detached bungalow going for N11.5 million and a three-bedroom semi-detached bungalow selling for N12.5 million.

He noted, “The adoption of uniform selling prices aims to promote affordability, transparency and fairness, ensuring that Nigerians across all regions have equal opportunities to benefit from the Renewed Hope Housing programme.

“The Minister of Housing and Urban Development, Ahmed Musa Dangiwa, an architect, said priority in the allocation of the housing units would be given to low and middle-income earners, civil servants at all levels of government, employees in the organised private sector with verifiable sources of income, and Nigerians in the diaspora who wish to own homes in the country.”

Haiba added that the ministry further announced that the sale of the completed housing units across the northern and southern regions would soon commence.

“Applications can be made through the Renewed Hope Housing online portal at www.renewedhopehomes.fmhud.gov.ng or obtained from the ministry’s headquarters and field offices nationwide,” he added.

The director of press at the ministry, however, clarified that the approved prices applied strictly to the Renewed Hope Housing Estates, which are funded through the ministry’s budgetary allocation, not for the Renewed Hope Cities in Karsana Abuja, Janguza, Kano, Ibeju Lekki, Lagos, which are being funded through the public-private partnership.

 

Contributions from; Philip Shimnom Clement (Abuja), Peter Moses (Lagos), Ahmad Datti (Kano), Matazu Hamisu (Maiduguri) & Bassey Willie (Yenagoa)