Nigeria’s rent crisis worsens as two-bedroom flats average ₦2.5m, with tenants facing hikes from ₦250k in Benin to ₦20m in Lagos. Affordability now at risk

By Josephine Ogundeji | PUNCH
Tuesday, 30 September 2025

The average cost of a two-bedroom apartment in Nigeria has surged to ₦2.5 million per annum, triggering an affordability crisis that is reshaping urban housing and squeezing millions of households across the country.

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From ₦250,000 units in inner Benin City to ₦20 million luxury flats in Lagos’s elite districts, The PUNCH’s findings reveal a rental market that has become deeply fragmented and economically burdensome.

Two-bedroom apartments are widely seen as the middle-ground option—more comfortable than single rooms but not as costly as larger homes.

They serve young professionals, families, and middle-income earners. However, in 2025, even this modest option is increasingly out of reach.

In Lagos, for instance:

• Ikorodu: ₦1.5m – ₦2m
• Ketu, Alapere: ₦2.5m+
• Gbagada/Shomolu: ₦2.5m – ₦3.4m
• Ikeja: ₦4.5m – ₦6m
• Ikoyi/Victoria Island: ₦8m – ₦20m

In Abuja:

1. Karu/Kubwa/Maraba: ₦1.5m – ₦2.5m
2. Jabi, Jahi, Wuse 2: ₦2.5m – ₦3.5m
3. Maitama/Asokoro: ₦10m+

Other cities reflect the same inflationary trend:

• Ibadan: ₦800k – ₦1.5m (up from ₦350k in 2022)
• Port Harcourt: ₦600k – ₦4m
• Uyo: ₦650k – ₦5m
• Enugu: ₦800k – ₦4m
• Benin-City: ₦250k – ₦2.5m
• Kano: ₦800k – ₦5m

According to Ayodele Olamoju of the Nigerian Institution of Estate Surveyors and Valuers, the rent explosion stems from a complex web of economic pressures: inflation, rising construction costs, FX instability, and weak housing supply.

“Inflation has eaten deep into every part of the housing value chain—from cement to labour. Landlords are simply passing these costs to tenants,” he said.

In Ibadan, where affordable housing was once the norm, tenants now face service charges and sudden hikes. “I saw an apartment go from ₦1m to ₦1.1m in a week,” one data analyst said.

Kano’s market also shows polarisation. Rents in Sabongari hover around ₦1.5m, while Nasarawa GRA exceeds ₦5m.

Many families now spend over 40% of their income on rent, far exceeding the global affordability benchmark of 25–30%.

Others face eviction, downgrade to smaller flats, or endure long commutes from outskirts with lower rents but poor infrastructure.

Younger Nigerians delay moving out, and informal settlements continue to swell as urban poor are priced out of decent accommodation.

“The dream of independent living is fading fast for many young adults,” said urban planner Tolu Oduwole.

Experts say the rent crisis did not occur overnight. It reflects decades of:

1.  Chronic underinvestment in housing
2.  A 28 million-unit national housing deficit
3.  Ineffective urban planning
4.  Weak or non-existent rent control
5.  Speculative pricing targeting elites, not the average Nigerian

Architect Awolusi Femi noted that the rising cost of land, materials like cement and steel, and labour have made building unaffordable—forcing developers to recover costs through steep rents.

Experts propose the following solutions:

1. Affordable Housing Policies
Mass housing schemes and low-cost housing projects must be prioritised by federal and state governments.

2. Public-Private Partnerships (PPPs)
Collaborative ventures between government and developers can scale housing delivery.

3. Rent Control Regulations
Legal frameworks to cap arbitrary annual increases.

4. Rent-to-Own Schemes
Expand successful pilot programmes in Lagos and Abuja nationwide.

5. Transparent Online Rent Indexes
Standardised listings could protect tenants from agent exploitation.

6. Use of Local Materials
Reduce construction inflation by limiting import dependence.

7. Tax Relief for Affordable Housing
Incentivise developers and landlords to keep rents stable.

Dr Timilehin Olubiyi of West Midlands Open University warns that the crisis is not merely economic—it’s humanitarian.

“Families are forced to choose between rent and education or healthcare. Without a national response, this will become a dignity crisis.”

Nigeria’s rent crisis is more than a market anomaly—it’s a reflection of economic dysfunction, housing policy gaps, and a national affordability emergency.

As costs surge from ₦250k in Benin to ₦20m in Ikoyi, tenants are increasingly trapped between inadequate wages and runaway rents.

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Without urgent, coordinated reform, the dream of decent, secure, and affordable housing may remain out of reach for millions.