Frequent Rent Hikes Unsettle Nigerian Tenants
Rising rent prices are causing significant distress among tenants across Nigeria, with many families struggling to cope amidst skyrocketing living costs. Inflation hit 33.95% in May 2024, driving up prices for food, energy, and transportation, and pushing numerous households to the brink of financial instability.
Rent hikes, often enacted by landlords through estate agents, have become a widespread issue. Experts at a recent real estate forum in Lagos called for state-level legislation to protect tenants from these increases, despite the challenge of balancing this with private developers’ interests.
Yemi Afolayan, a forum discussant, emphasized the need for state governments, especially in densely populated areas like Lagos, to protect renters from landlords who annually raise rents. Former Lagos Governor Babatunde Fashola also urged the state assembly to revisit the Tenancy Law of 2011 to allow landlords to collect rents on a more frequent basis, potentially alleviating financial pressure on tenants.
The cost of small family housing units in Lagos has risen over 30% in many areas, with two-bedroom apartments in suburbs like Ejigbo, Egbeda, and Ikotun-Egbe now costing between N350,000 and N400,000 per year, up from N250,000 to N300,000 in January 2023. Smaller apartments have seen similar increases.
In Enugu, rent hikes are largely driven by high demand from tertiary students. Alfred Ugwoke, a civil servant in Abakpa Nike, noted that three-bedroom apartments now cost N250,000 to N300,000 per year, compared to N200,000 to N220,000 the previous year.
Ekiti State has seen such severe rent increases that the government intervened, appealing to estate agents to consider the economic realities and ease the burden on tenants. Gboyega Oloniyo, the governor’s special adviser on mortgage and housing, criticized estate agents for leasing properties at high rates and depriving average citizens of affordable housing.
The Ekiti State government is working to improve housing availability and affordability, approving 34 hectares for the Federal Housing Authority to build affordable homes and planning other interventions. Mary Oso-Omosotso, director-general of the Office of Community Communications, stressed the need for regulations to prevent extortion by estate agents and urged cooperation to achieve the governor’s vision of shared prosperity.
