A new BusinessDay Talk Exchange poll has revealed that about seven in ten Nigerian workers spend at least 40 percent of their annual income on rent and housing-related expenses.
The survey, titled State of Housing in Nigeria, shows that 72 percent of respondents spend between four and six months of their yearly salaries on accommodation — a level experts say is unsustainable given rising living costs.
Speaking during the Talk Exchange session on X (formerly Twitter), Samuel Ajiboyede, CEO of Rowvar Property & Finance, said rents are unlikely to drop soon as nearly 60 percent of building materials are still imported.
“Speculation doesn’t drive real estate; demand and inflation do. With a housing deficit of over 29 million units, rents will keep rising unless incomes increase,” he said.
The poll found mini-flats (39%) and self-contained apartments (34%) to be the most commonly rented homes. Respondents, mostly aged 25 to 44 and based across 11 states including Lagos, Rivers, and the FCT, cited affordability as their main reason for choosing current residences.
About 40 percent said they had relocated due to high rents, while 70 percent described their current accommodation as overpriced.
Rent levels vary widely across states, with Lagos and Abuja recording prices as high as ₦1 million for small apartments.
Despite affordability concerns, over 60 percent of respondents said they would pay higher rents for homes closer to work, highlighting the link between housing costs and poor transport infrastructure.
Legal expert Ejovi Erebor noted that while Nigerian law protects tenants from “unreasonable” rent hikes, it fails to define what constitutes unreasonable, leaving interpretation to the courts.
Architect Ayomide George of OddSpace Consults also criticised the weak enforcement of Nigeria’s outdated National Building Code, last reviewed in 2006, saying it encourages poor housing quality and unsafe construction practices.
Ajiboyede further identified the lack of a national land ownership database as a major barrier to affordable housing, as it prevents property owners from using land as collateral to access funding.
He urged the government to guarantee real estate loans to help developers lower costs.
At the 2025 BusinessDay Sustainable Building Conference, Sanmi Olowosile, Chairman of the Sustainable Green Environment Initiative, proposed a return to the use of local materials such as mud, timber, and bamboo to cut costs and create jobs.
He noted that bamboo, when properly treated, rivals steel in strength and can regenerate within 18 months.
He urged the government to promote such alternatives and establish green housing policies, citing Rwanda’s Climate Fund as a model for attracting international financing.
Experts also called for improved road and rail networks to encourage workers to live in more affordable areas outside congested city centres.
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