Rising Rents May Push Nigerians Into Financial Distress, HDAN Warns

An advocacy group, the Housing Development Advocacy Network (HDAN), has raised an alarm over the
worsening rent crisis in Lagos State.

To this end, the group warned that the persistent increase in rental costs is fast pushing millions of hardworking Nigerians into housing poverty and financial distress.

HDAN’s Executive Director, Barrister Festus Adebayo in a statement he issued in Abuja on Sunday, said Lagos has witnessed an unprecedented surge in rental prices across both mainland and island communities, which made decent accommodation increasingly unaffordable for low- and middle-income earners who constitute the bulk of the city’s workforce.

He said, “In recent years, Lagos has witnessed an unprecedented surge in rental prices across both mainland and island communities, making decent accommodation increasingly unaffordable for low- and middle-income earners who constitute the bulk of the city’s workforce.

“HDAN notes that this growing crisis is largely driven by a combination of structural challenges including rapid population growth without a commensurate increase in affordable housing supply, rising construction costs, urban migration, displacement arising from demolitions, and limited access to mortgage financing for home ownership.

“As Nigeria’s commercial nerve centre, Lagos continues to attract thousands of job seekers daily from across the country.

“However, the absence of adequate affordable housing development to match this growing demand has created a widening gap between available homes and prospective tenants — a situation that has allowed rental prices to skyrocket beyond the reach of average income earners”.

He observed that the sharp rise in the cost of building materials due to inflation and foreign exchange fluctuations has discouraged developers from investing in affordable housing projects, as many now focus on luxury developments targeted at high-net-worth individuals or short-let investors, leaving the majority of Lagos residents with limited housing options.

“In addition, HDAN is concerned that recent urban renewal exercises and demolitions across parts of Lagos have displaced thousands of families, many of whom are forced to re-enter the already strained rental market, thereby escalating demand and putting further pressure on rental prices.

“The weak mortgage system in Nigeria has also compounded the crisis, as many Nigerians who would have preferred to own homes are left with no viable financing options, increasing reliance on rental accommodation”, he said.

He warned that if urgent and deliberate steps are not taken by relevant authorities to stimulate the development of affordable rental housing and regulate exploitative rental practices, Lagos may witness a surge in informal settlements, overcrowding, homelessness, and increased urban poverty.

“The Network therefore calls on: The Lagos State Government to scale up investment in social and rental housing schemes for low-income earners;
Federal and State housing institutions to provide incentives and financing support for developers willing to invest in affordable housing;

“The introduction of policies that encourage rent-to-own and incremental housing development models; Stronger collaboration between public and private sector stakeholders to ensure inclusive urban housing development.

“HDAN reiterates that housing remains a fundamental human need and a critical component of economic stability and social wellbeing. Addressing the rent crisis in Lagos must therefore be treated as a priority in the broader effort to achieve sustainable urban development in Nigeria”, he said.