Economy, Featured
The housing crisis in the country and the recent hikes in accommodation will no doubt trigger inflation, higher food prices and other commodities. Perhaps the urgent intervention of the Federal Competition and Consumer Protection Commission, FCCPC, is necessary to reduce the burden of the already troubled Nigerians, who are daily battling with insecurity and poor electricity supply among others.
By Goddy Ikeh
MILLIONS of Nigerians in various cities across the country are daily moaning silently over the sudden hikes in rental accommodations as well as offices and shops with rents raised by between 100 and 500 per cent depending on the city.
In Lagos some residents told Realnews that their rents had been raised by between 100 and 500 per cent this year.
For instance, a civil servant, who resides in Suru-lere in Lagos said that his annual rent had been raised from N725,000 to N2 million, while another resident in Aguda also in Lagos said that his 2-bedrom flat had been raised from N750,000 to N1,5m.
Another resident who lives in the outskates of Lagos also said that his rent for a 2-bedroom flat had been raised from M350,000 annually to N600,000. The hike in rent is not limited to residential houses as offices and shops in many streets and malls are also affected.
In its brief on the country’s national housing crisis, the National Bureau of Statistics (NBS) disclosed that Nigeria’s national housing crisis encompasses a deficit of 14.9 to 28 million housing units and an estimated 15.2 million existing homes classified as structurally inadequate.
It stated that the shortage compounded by soaring building material costs and an urban population boom, forces over 50% of Nigerians into expensive rented accommodations.
The official data and sector reports on the housing crisis and the collaborative study by the Federal Ministry of Housing and Urban Development and the World Bank showed a housing deficit of 14.9 million units.
Additionally, 15.2 million existing units are structurally unsafe or fall critically short of adequate housing indices, while only 31% of Nigerians live in personal homes. The remaining majority relies on the rental market, where rent and housing costs have risen disproportionately ahead of inflation with rent in urban hubs like Lagos jumping over 100% in recent years.
In its recent report Estate Intel stated that the real estate and construction sectors continue to struggle against the high cost of raw materials (such as cement) and low access to single-digit housing finance.
The report stated that higher diesel costs reduce developer profit margins and increase property sale prices. Estate Intel explained in the recent report titled ‘Impact of the USA/Iran War on Nigeria’s Real Estate’ examines the impact of the ongoing crisis on Nigeria’s construction sector, real estate activities and the nation’s economic outlook for the year.
It stated that, in doing this, Estate Intel consulted experienced professionals from various industries to share insights. It explained that Nigeria’s construction sector, real estate activities and economic outlook are being impacted by the US/Iran conflict, adding that rising oil prices are causing inflation and increasing energy and construction costs.
It added that the situation has resulted in increased freight charges, higher insurance costs, and shrinking profit margins for developers, ultimately impacting project timelines and delivery schedules.
“Higher diesel costs will also reduce developer profit margins and increase property sale prices,” the report stated.
Estate Intel, nevertheless, stressed that higher oil revenues may stimulate demand for property assets, but borrowing is expected to increase due to rising debt-servicing costs.
According to the report, the U.S./Iran conflict escalated in February 2026 when U.S.-Israeli airstrikes hit Iranian military leaders and nuclear sites, stressing that, in response, Iran closed the Strait of Hormuz, “triggering a major global oil crisis that exposed Nigeria to a mix of macroeconomic challenges and opportunities, raising risks and uncertainty across Nigerian oil-linked sectors, particularly real estate and construction.”
“Rising oil prices are increasing energy and construction costs, causing inflation. Fuel pump prices in Nigeria rose sharply from N840 per litre in February 2026 to over N1,200 per litre in March 2026, an increase of over 30 per cent in a single month.
The Chief Executive Officer of Cutstruct, John Oamen, told Estate Intel in an interview that “tensions around the Strait of Hormuz have had a limited direct impact on Nigeria’s construction supply chain so far but are increasing indirect risk exposure. While most Nigeria-bound shipments do not rely exclusively on Hormuz routes, instability in the corridor is already feeding into higher freight costs and rising insurance premiums, particularly through war-risk surcharges. The market is also experiencing minor shipment delays as global carriers adopt more cautious routing strategies.”
He added that although these disruptions have not yet materially constrained supply, they are increasing volatility in logistics costs and delivery timelines, ultimately driving up project costs and extending completion schedules across the real estate sector.
“The same goes for service charges allotted to offices and multi-tenanted residences in prime areas, which will increase as maintenance and operational costs rise. Companies may cut costs as expenses rise and adopt a hybrid work model to benefit their staff while reducing operational costs,” he said.
It stated that, in doing this, Estate Intel consulted experienced professionals from various industries to share insights.
Although Estate Intel focused on the effect of ‘Impact of the USA/Iran War on Nigeria’s Real Estate’, the ongoing hikes in annual rents across the country will lead to increases in inflation and higher prices of food and other commodities since the high cost shops will certainly be passed on the consumers.
However, the interview which Realnews conducted with some professionals in the Real Estate sector showed that the current hikes in rents across the country could not be blamed on the sector since the Landlords are not isolated from the effects of inflation and other challenges in the country. According to one of the professionals in the sector, a few house agents may be blamed for influencing hikes in rents because of the commission, but the real professionals who manage properties are certainly not involved in such practices.
He, however, blamed some of the children of Landlords whose robotic behaviours often lead to such unnecessary hikes in rents in order to service their unwarranted lifestyles, which their fathers never planned nor envisaged.
The ongoing development in the housing sector will no doubt, lead soon to the demand for higher wages by workers to cope with new hikes in rents, while the three tiers of government should start planning to budget for the provision of more shelters to accommodate the new set of families to be ejected from their homes.
Unfortunately the federal government and both the states and local governments have not considered this developments as issues of national concern until thousands or millions of workers and other residents in many state capitals and other cities are ejected from their houses and rendered homeless because of their inability to pay the new rents.
Meanwhile, the Federal Ministry of Housing and Urban Development has said that it will unveil a strategic housing roadmap before the end of May as part of efforts to expand home ownership and scale up housing delivery through Public-Private Partnerships, PPP, across the country.
However, the new Minister of Housing and Urban Development, Muttaqha Darma, during the second edition of the Renewed Hope Housing Public-Private Partnership Summit in Abuja that the outcomes of the summit would form a critical part of the ministry’s strategic plan aimed at transforming housing delivery and driving economic growth.
According to him, the strategic framework, which followed consultations with departments and agencies under the ministry, would provide direction for implementing housing policies and projects through collaboration with the private sector and other stakeholders.
“Whatever plan we come up with, we will pursue diligently to ensure that it delivers meaningful results for Nigerians,” he stated.
The minister disclosed that ongoing housing projects in Ibeju-Lekki, Lagos State; Lambu, Kano State; and Karsana, Abuja, would be commissioned by President Bola Tinubu upon completion.
He added that the ministry intended to scale up housing delivery nationwide through sustainable frameworks anchored on strong PPP models, innovative financing mechanisms and inclusive participation.
“This would ensure that thousands of Nigerians would soon become homeowners, with roofs over their heads as these housing projects continue to expand nationwide,” he stated.
Darma noted that the projects had contributed to job creation by engaging artisans, engineers, contractors, suppliers and other professionals in the construction sector, while also stimulating economic activities in host communities.
He further disclosed that the ministry, in collaboration with the Renewed Hope Infrastructure Development Fund, was delivering 1,550 housing units for military personnel as part of efforts to improve the welfare and living conditions of members of the Armed Forces.
While acknowledging the progress made so far, the minister stressed the need to complete all ongoing projects within reasonable timelines and according to the highest standards.
Perhaps, while giving the government another chance to implement the new policy despite the failures of previous housing development plans, it may be necessary to suggest improvement on data Integration strategy by improving planning, financing in the sector to close the wide housing deficit.
In addition, some stakeholders have suggested the involvement of the Federal Competition and Consumer Protection Commission, FCCPC, which has the primary role of investigating consumer exploitation, monitoring unusual price hikes and prosecuting anti-competitive behaviors like price-fixing in the country. According to the stakeholders, the federal government should for once be proactive in tackling problems affecting the people instead of continuing with its reactive approach in tackling national issues.
A.I
May 26, 2026
Tags: FCCPC Goddy Ikeh John Oamen Muttaqha Darma
