Nigeria’s skyrocketing rent prices in major cities have become a harsh burden for millions of families. Across places like Lagos and Abuja, tenants are forced to cough up two or even three years’ rent upfront, with landlords arguing that inflation and ballooning construction costs leave them no choice.
With a staggering housing deficit now topping 28 million units, rental prices are unlikely to come down anytime soon unless bold action is taken. While governments have rolled out several housing initiatives over time, their success has been limited and the crisis persists.
The Federal Government’s flagship National Housing Programme (NHP), spearheaded by the Ministry of Works and Housing, constructed thousands of homes across different states. However, these efforts barely make a dent in the demand – a drop in the ocean compared to the country’s 28 million-unit gap.
Affordability remains an even greater hurdle. Most of the houses built under government schemes are priced far beyond what an average Nigerian can afford. Many civil servants and low-income families are excluded, and some estates are empty because they’re located in poorly accessible areas lacking essential utilities like water, roads, and electricity. Good intentions have too often been undone by poor implementation.
Recognizing that government resources alone can’t solve the problem, authorities have embraced public–private partnerships (PPPs). In Lagos, the LagosHOMS scheme pioneered this model, providing land for private developers to build homes. Other states, including Anambra, Delta, Ogun, Rivers, and the FCT, have adopted similar strategies.
However, these partnerships have delivered mixed results. While they’ve slightly increased available housing, the properties produced are mostly beyond the financial reach of ordinary Nigerians. Developers target middle- and upper-income buyers, pricing a two-bedroom apartment far above what someone earning less than N100,000 per month could ever dream of affording. So, while supply has improved, it has not been matched by genuine affordability.
On the financing front, bodies like the Federal Mortgage Bank of Nigeria (FMBN), the National Housing Fund (NHF), and the Nigeria Mortgage Refinance Company (NMRC) were set up to make homeownership more accessible. Through these channels, workers are supposed to access low-interest mortgages, and lenders get liquidity.
Reality, however, paints a different picture. Nigeria’s mortgage penetration rate is shockingly low—less than 1%, compared to over 30% in South Africa. Mortgage interest rates run between 18-25%, making them prohibitively expensive for the majority. Most payment plans aren’t designed for the earnings of regular workers. In practice, these schemes rarely benefit ordinary Nigerians.
In response to rampant rent increases, a handful of states have introduced tenancy laws. The Lagos Tenancy Law of 2011, now under review, prohibits landlords from demanding more than a year’s rent in advance for residential properties. Abuja and a few other states have tried to implement similar regulations.
Yet, these laws amount to little more than paperwork. Enforcement is so weak that many landlords simply ignore the rules, insisting on two or three years’ rent upfront knowing that tenants have little legal recourse. Court cases drag on, and the lack of dedicated housing tribunals means renters are often left stranded.
Other government strategies have included waiving import duties for building materials, granting land for mass housing, encouraging pension funds to invest in housing, and backing cooperative housing ventures (particularly for civil servants).
But overall impact is still modest. Red tape, corruption, and poor infrastructure deter many developers. Most choose to build luxury housing, where profits are higher and risks are lower, rather than low-cost homes. Cooperative models do help in some cases, but mainly benefit those with steady formal employment—leaving the informal majority underserved.
Urban renewal initiatives in states like Anambra, Lagos, and Abuja have aimed to transform slums into modern estates. While some new communities have sprung up, these projects don’t reach nearly enough people. Often, displaced low-income residents can’t afford the new units, forcing them into other informal settlements. The slum population keeps climbing.
In summary, official efforts so far have been fragmented, underfunded, and poorly focused. Most policies and programs have ended up favoring middle and upper classes, while millions of vulnerable families continue to face unaffordable rent. The government builds a few thousand units, but the annual demand rises by several hundreds of thousands due to urbanisation and population growth.
Tenancy laws lack teeth. Mortgage systems remain out of touch. PPPs serve the affluent. Cooperative housing is limited to a few. The frameworks exist, but the real impact on the ground is minimal.
For Nigeria to rein in runaway rents, the government’s housing strategy must evolve. Three key actions are urgent:
First, tenancy laws require backing by dedicated housing courts or tribunals that resolve disputes swiftly and guarantee that rent caps are enforced in practice, not just on paper.
Second, governments should incentivize developers to build truly affordable homes by offering land, infrastructure, and tax breaks—on the condition that these resources are used to provide low- and middle-income rental housing. Approvals and land allocations should prioritize projects with genuine affordability commitments.
Third, the private sector should be drawn in through innovative funding like Real Estate Investment Trusts (REITs), housing bonds, and shared living models for young people and professionals. Pension funds, insurers, and businesses could also channel investments specifically into affordable staff housing and rental projects.
Affordable housing must be seen as a viable investment—not as charity. With supportive, well-designed policies, the private sector can help deliver rental homes at scale and still earn fair returns.
Okafor is an estate surveyor and valuer based in Anambra.
