Residents flee major Nigerian cities as rents surge

Residents in major Nigerian cities are increasingly being forced to leave urban areas as rents surge to unprecedented levels, JOSEPHINE OGUNDEJI writes

Residents in major Nigerian cities are leaving urban areas as rents skyrocket, with some reporting increases of up to 500 per cent in just two years. Once affordable neighbourhoods are now forcing tenants to consider suburbs, where housing is cheaper and more accessible.

Data shows the disparity is extreme. With the national minimum wage at 70,000 naira per month, tenants who paid N9m two years ago are now being asked to pay as much as N30m yearly. For many workers, remaining in city homes has become financially impossible.

In an exclusive interview with The Punch, the immediate past chairman of the Nigerian Institute of Estate Surveyors and Valuers, Gbenga Ismail, said rents have surged by up to 500 per cent in the past two years, hitting low-income earners hardest, while demand from higher-income tenants continues to push prices up.

According to him, with demand soaring and the economy under strain, rents are climbing faster than many can afford.

He said, “The truth is that the surge in rent is happening because more people who can afford higher prices are entering the market. Demand has spiked sharply, and with the economic situation, especially inflation and currency devaluation, landlords are using rent reviews to adjust to the new realities. Many of them argue that their own costs have tripled, from maintenance to service charges to the price of building materials, and they transfer that burden to tenants.

“In the last two years alone, rents have risen by as much as 500 per cent; rent that was N9m is now N30m, and nothing much can be done. It will definitely affect low-income earners, as they cannot live in the centre or close to the centre anymore; they would have to move to the suburbs. Even Arepo in Ogun State would become too expensive. This is a very critical situation, and Lagos is a bustling city, so unless they move to Ibadan, however, rents are also going as high as N15m in Ibadan, Oyo State.”

Residents cry out

Reacting to the development, a former resident of Magodo Isheri in Lagos State, Toni Igalla, disclosed that with the sudden increase in rent in his area, he and his family were forced to move to a suburb to find something affordable after his rent was increased from N700,000 to N3.5m.

He said, “Initially, we were using one agent. The agent came back with an increment, moving the rent from N700,000 to N1.2m a year. The instruction that the landlord gave the agent was to apply double-digit increases because he noted that the rate of letting in the estate I was in, Magodo Isheri, was high.

“Then the landlord got another agent, who told us that they would upgrade everything in the house. But the rent was suddenly moved from N700,000 to N3.5m, without even doing any Plaster of Paris work or other improvements. It’s confusing and unfair. I still don’t understand why it happened, and it doesn’t make sense.

“Even though the agent claimed there would be upgrades, the rent jumped from N700,000 to N1.2m and then to N3.5m. It’s an arbitrary increase that disregards tenants’ lives and circumstances. The more I tried to negotiate or discuss with them, the more complicated it became. Ultimately, my family and I had no choice but to move to Arepo in Ogun State.”

Another resident living in Abuja, Ajayi Jinadu, lamented that despite paying rent on time and enduring poor conditions, his rent was suddenly doubled for a house with no basic infrastructure, forcing him to move to get value for his money.

He said, “So, this has been a major concern recently. For my property, where I used to stay, I moved into a studio apartment in 2022. Initially, the rent was N250,000. But when we got there, there were no lights, and we had to rely on our own generator to pump water. The landlord essentially gave us a bare house with very little infrastructure. The landlord had promised to fix the lights, but nothing was done during the first year.

“In the second year, she increased the rent to N300,000, which we paid, while still reminding her about the lights. By late 2022, we had to install solar ourselves because there were only three tenants. We relied on solar for electricity and the generator for water. When the generator developed issues, it became a serious problem, forcing us to fetch water elsewhere.

“The next year, the rent was increased again to N350,000. Before paying, we spoke to the other tenants about pooling resources to fix the lights ourselves and then balancing the cost with the landlord. Despite these issues, we paid the full N350,000 without complaint. I’ve never defaulted on rent; I always pay on time, preferring peace of mind. So, for the landlady to suddenly announce another increase, from N350,000 to N700,000, was shocking.

“I understand that property prices in the area have increased, but those properties come with proper infrastructure; they are modern, new, and have constant water and electricity. I had to ask myself: why would I renew a place that provides none of that and demands such a steep increase? It was outrageous. I decided it was better to upgrade to a one-bedroom apartment, even though it is more expensive, just to get value for my money.

“This experience is not unique; many people in Abuja face similar issues. My old apartment was in Asokoro Extension, an area just beyond the main Asokoro. For me, it became clear that paying for a place without the necessary facilities is simply not worth it.”

Another resident of Magboro, Ogun State, Joshua Ashiyonbola, asserted that the rental hike took a personal toll on him.

He said, “So, I feel like this house thing is taking a toll on me personally because I was living at the place before; the rent was some 500,000 then, and I’m talking of just two years ago. And after, like, two years, the landlord came up with one funny reason and said he was increasing the rent to 800,000, and that’s for a two-bedroom apartment in this area in Magboro.

“So, where I was staying is close to the express to an extent, so I felt I could not pay this amount of money. Let me seek a house elsewhere. The price is like N1.2m elsewhere, and that is shocking. I didn’t feel like I could pay that exorbitant amount, so I decided to go far inside so that if you want to come to the express, you have to spend another 1,000 naira or around that amount.

“That is somehow, and it’s tiring for a working-class individual, especially in this economy. So now what they’re making you do is that if you cannot pay that amount in an area close to the express, you have to go further inside to an area where you pay 1,000 for transport to get to the express, and it is challenging. So, at the end of the day, you still pay similar amounts for the rent at the end of the year. Now, for the apartment I got that is far inside, the amount is N1m. So, what’s the difference between N1.2m and N1m? The remaining 200,000 is spent on transport. So, those are the issues. What is scary is that our house rent is becoming unaffordable.”

Once known for its affordable housing, Ibadan is quickly losing that reputation. Data analyst Oladayo Isaac said the sharp rise in his rent over the years reflects the city’s changing housing landscape.

He said, “In 2022, two-bedroom flats cost between N300,000 and N500,000. I rented mine for N350,000. Today, average rents are N800,000 to N1.5m. Landlords are even introducing service charges, something unheard of in Ibadan until now.”

On the X app, an X user, @_adesuwaaaaaa, commented, “Lmao, my mum increased her 3-bedroom from 600k to 1 million, and her tenants are fighting her; they’ve stopped greeting her.”

Reacting to the tweet, @Mileslchele said, “My landlord increased a self-contained room from 350k to 600k. Omo, till now I never replied because there’s no clean water in the house; he didn’t even paint the house and also increased the service charge from 40k to 100k. Why are landlords greedy?”

Lamenting the increase, an internet personality, @asher_kine, said, “So, if you’re renting a good 2/3-bedroom flat in Lagos right now, you have to have N12–15m? This cannot be my own 20s, God.”

Reacting to the tweet, another X user, @Tobimyke, said, “Increment should be 5–10 per cent because no job here in Nigeria gives you an increment of more than 10–15 per cent, so only house rent is taking a 40–50 per cent increment. It’s totally unfair to us on this side of the world.”

Legal limits on rent

Also sharing his opinion, a legal practitioner, Wasiu Adereti, explained that arbitrary rent increases are largely governed by the terms of the tenancy agreement, noting that while landlords may seek to adjust rents, such increases must typically adhere to agreed-upon clauses, fairness principles, and, in some cases, regulatory frameworks to prevent arbitrary or excessive hikes that could disadvantage tenants.

He said, “My understanding is that the tenancy relationship is fundamentally contractual. Therefore, issues such as rent review or rent increase are largely subject to the agreement between the parties. Typically, tenancy agreements include a rent review clause, where both parties outline the terms and conditions of any increment, when it should occur, and how it should be calculated so as to ensure fairness and balance for both landlord and tenant.

“However, in the absence of such a clause, or where no agreement exists at all, the law intervenes.

Default provisions under the tenancy law will apply to safeguard the interests of both parties. For example, a landlord cannot impose a unilateral increase without informing the tenant or obtaining their consent. Judicial authorities have established that a unilateral increment is, at best, considered an offer to the tenant, which they are free to accept or reject.

“Additionally, any increase must not be unreasonable or arbitrary. Tenants have the legal right to challenge any increment they consider unfair or excessive in court. Importantly, the law often protects tenants from eviction while such a dispute is being resolved judicially. In practice, for instance, in Lagos, tenants do exercise these rights, and there are cases where they have successfully challenged landlords in court.”

Stakeholders react

The President of the Association of Housing Corporations of Nigeria, Eno Obongha, noted that the reasons for the rent hike were not far-fetched.

He said, “When demand is higher than supply, prices must go up. The supply end is limited because building material prices are very high. Most of the imported materials are also affected by the dollar value. The processes for obtaining housing loans from development finance institutions are equally cumbersome.

“There must be a deliberate effort by federal, state, and local governments in Nigeria to increase the housing stock for the benefit of medium- and low-income earners. The housing deficit affects the medium- and low-income earners, and these days, because of the economic hardship, many high-income earners are leaving big properties to compete for two- and three-bedroom units. Finally, there are no rent control laws to regulate rents charged by landlords.”

A builder, Awolusi Femi, noted that the steady rise in rental prices across the country is driven by a complex mix of economic and structural factors.

He said, “One of the most pressing issues is the increasing cost of land. As urban centres expand and demand for prime locations intensifies, the value of land continues to soar. Land scarcity in major cities has further heightened competition, making property acquisition an expensive venture. This, in turn, pushes landlords and developers to pass on these costs to tenants in the form of higher rent, making housing less affordable for the average citizen.

“Beyond land costs, the relentless surge in building material prices plays a significant role. Materials such as cement, steel, roofing sheets, and finishing products are experiencing constant price hikes, largely influenced by inflation, import dependence, and supply chain disruptions. These rising costs not only impact new construction projects but also existing buildings. Landlords are compelled to adjust rents upward to cover maintenance expenses, since even routine repairs now require expensive materials. Consequently, tenants are bearing the brunt of these inflationary pressures.”

Reps react

The House of Representatives recently proposed capping annual rent increases at no more than 20 per cent, aiming to curb arbitrary hikes and protect tenants from exploitation, especially in areas experiencing rapid infrastructure development.

This followed the adoption of a motion moved by Bassey Akiba during a plenary last month, urging the Federal Government to regulate rent increases and ensure access to affordable housing nationwide.

Presenting the motion, Akiba said the proposal was grounded in Section 14(2)(b) of the 1999 Constitution (as amended), which places the welfare of citizens at the core of government responsibilities. He noted that housing, universally recognised as the second most essential human need after food, is a fundamental right under the United Nations Habitat Agenda, which guarantees access to safe, secure, and affordable housing.

The lawmaker expressed concern that the current economic hardship is worsening the plight of Nigerians, particularly tenants, who face soaring rental prices. He observed that in the Federal Capital Territory and other parts of the country, rents often spike sharply following the construction of public infrastructure such as roads, markets, and other amenities.

“In areas with newly constructed roads in Abuja, for example, rents have skyrocketed from N800,000 to as high as N2.5m per annum,” Akiba said, warning that the situation imposes unbearable financial pressure on residents.

He added that such wanton exploitation by property owners undermines the government’s efforts to improve citizens’ welfare through infrastructure development and drives many Nigerians into economic distress, with some resorting to crime to meet inflated rent demands.