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Nigeria’s rent crisis deepens as two-bedroom flats hit N2.5m

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Nigeria’s rental market is spiralling, with two-bedroom apartments averaging N2.5m annually, far above rates of just a few years ago. From N250,000 flats in Benin to N20m luxury units in Lagos, tenants nationwide face surging rents that are deepening an affordability crisis and squeezing millions of households.

The Nigerian housing market is facing one of its toughest periods in recent history, as the median rent for a two-bedroom apartment in many parts of the country has climbed to about N2.5m annually.

This figure represents a sharp rise compared to what was obtainable a few years ago and highlights the deepening affordability crisis confronting millions of Nigerians. From Lagos to Kano and Ibadan to Port Harcourt, tenants are feeling the squeeze of rapidly escalating rents.

While N2.5m serves as a national benchmark, the reality is that rents vary wildly across cities and neighbourhoods  ranging from as low as N250,000 in some inner parts of Benin City to as high as N20m in Lagos’s luxury districts, according to data gathered from industry players in these various locations.

Why two-bedroom flats

The focus on two-bedroom apartments is deliberate. Across Nigeria, this category of housing is often considered the “middle ground” for families, young professionals, and middle-income earners. A single-bedroom apartment is typically viewed as temporary or transitional housing, while three- and four-bedroom units are often priced far beyond the reach of average tenants.

For many Nigerians, a two-bedroom flat represents a balance between affordability and comfort. Yet, with prices surging, even this once-modest option is increasingly out of reach.

A resident of Jos, Plateau State, Gloria Oyogho, explained how rent is shaped by finishing and infrastructure. “In standard areas with good finishing, water supply, and stable electricity, rents range between N1.5m and N2.5m. But in less standard areas, prices are much lower, around N500,000 to N800,000,” she told The PUNCH.

She added that hidden costs further inflate expenditure: agency fees, legal charges, and sometimes compulsory renovation levies. “I once saw a flat for N500,000, but it lacked running water, and residents depended on a well,” she said, underlining how amenities directly impact value.

In Abuja, the country’s capital, rent disparities are glaring. Legal practitioner Adedapo Adewuyi described the property market as a spectrum, from relatively affordable outskirts to premium neighbourhoods catering to the wealthy and political elite.

In Karu, Maraba, and Kubwa, rents for two-bedroom flats range between N1.5m and N2.5m. In Wuse 2, Jahi, and Jabi, the cost climbs to around N3m. In Maitama and Asokoro, two-bedroom units cost up to N10m annually, reflecting prestige and exclusivity.

“These high-end districts are magnets for executives, diplomats, and top government officials,” Adewuyi explained. “Location remains the single most important factor in Abuja’s property market.”

The imbalance has led to rising tenant frustrations. One lawyer in a social forum questioned whether it was legal for a landlord to raise a tenant’s rent from N1.5m to N2.8m just months before renewal. Such abrupt hikes are increasingly common.

Ibadan, traditionally considered an affordable city, is fast losing that reputation. Data analyst Oladayo Isaac recounted how his rent journey reflected the city’s transformation.

“In 2022, two-bedroom flats cost between N300,000 and N500,000. I rented mine for N350,000. Today, average rents are N800,000 to N1.5m. Landlords are even introducing service charges, something unheard of in Ibadan until now,” he said.

He also narrated how inspections have turned into bidding wars. “We were about 50 people at one viewing. The landlord raised the price on the spot because of demand. Another apartment I considered rose from N1m to N1.1m in a week.” Isaac lamented that Ibadan landlords are “copying Lagos models”, with arbitrary rent hikes and extra service charges.

In Ogun State, proximity to Lagos is a key driver. Architect Seyi Amusan explained that in Opic, two-bedroom flats cost between N2m and N2.5m annually. “The demand comes from workers who cannot afford Lagos rents but still want to be close to the city,” he said. Yet prices are far from uniform. Rural districts in Ogun remain relatively affordable, though infrastructure gaps often make them less desirable.

Enugu also mirrors the nationwide pattern of disparities. Agent John Kalu said two-bedroom flats in Emene and Abakpa go for N800,000–N4m, while prime areas like New Haven and Independence Layout cost N2.5m and above. “Tenants must also add legal and agent fees, which can increase total costs by 10 – 15 per cent,” Kalu noted.

Lagos stands out as the most expensive and unpredictable rental market in Nigeria. The spread is dramatic: Ikorodu, N1.5m N2m; Ketu and Alapere, N2.5m upwards; Gbagada and Shomolu, N2.5m – N3.4m; Ikeja, N4.5m – N6m; Magodo, N4m; and Ikoyi and Victoria Island, N8m – N20m.

One tenant along the Alapere/Ogudu Expressway said his rent jumped from N400,000 to N1.2m in a single review. Such steep hikes, often without justification, reflect the cutthroat competition for housing in Lagos.

In Uyo, estate agent Mint Ebuk reported average rents of N650,000 – N5m. In Benin-City, agent David Asobur noted extremes: N250,000 for poorly serviced inner neighbourhoods and up to N2.5m for well-serviced areas. In Calabar, resident Impress Nkechi said prime districts like Parliamentary Extension rarely go below N1.5m, while the outskirts still offer flats for N700,000.

Kano’s housing reflects its socio-economic diversity. Agent Amin Ya Rabbi explained that in Nasarawa GRA, the cost of rent is from N5m and above; Zoo Road, Otoro, N2m N2.5m; and Badawa, Sabangari, N800,000 N1.5m. “These differences reflect not just income levels but also cultural preferences and accessibility,” he said.

In Port Harcourt, two-bedroom flats cost between N600,000 and N4m depending on location. GRA stands at the top, with apartments rarely below N3.5m. The city’s average N2.5m mirrors the national median.

Institutions react

The Assistant National Publicity Secretary of the Nigerian Institution of Estate Surveyors and Valuers, Ayodele Olamoju, noted that rents in Nigeria have skyrocketed in a way that feels almost unbearable for many, especially those living in big cities.

He said, “What we’re facing is not just a random occurrence; it’s really the outcome of demand and supply struggling against each other, shaped by economic, social, and political forces. The housing market is under immense pressure, and without enough affordable options being delivered, the sharp rent increases keep hitting ordinary people hard. Take, for example, the average two-bedroom apartment that now goes for around N2.5m in major cities in the country. That figure alone tells the story of how far things have escalated. The surge is not because landlords simply want to exploit tenants; it’s because costs across the board have risen drastically. Inflation has eaten deep into every part of the housing value chain. From cement to steel, tiles, fittings, and even labour, prices have doubled or tripled within a short time, and naturally, developers and landlords are passing on these costs to tenants.

“Another major factor is our currency instability. The depreciation of the naira and the persistent foreign exchange shortages mean that anything imported for construction immediately becomes more expensive. Whether it’s finishing materials, fixtures, or even machinery, the exchange rate problem makes it harder to build at a reasonable cost. This has worsened construction inflation, and by extension, made rents climb faster than wages can catch up.

“All these issues combined show that the rent crisis is not a simple problem; it is structural. It exposes gaps in housing policy, weak supply systems, and the economic realities that every Nigerian is grappling with. Until there’s a deliberate effort to address both the economic pressures and the policy failures that feed into the demand-supply imbalance, rents will keep rising, and tenants will continue to struggle.”

An estate surveyor, Olorunyomi Alatise, noted that rental prices in Nigeria, particularly in Lagos where the pressure is most acute, have spiralled uncontrollably in recent years, driven by both structural deficiencies and economic realities.

He said, “The chronic housing deficit in Kano, for instance, has created a persistent imbalance between supply and demand. On the other hand, inflation, currency volatility, and escalating construction costs have left landlords with little choice but to push rents upward, often indiscriminately. This dual force of scarcity and cost-push inflation has made shelter an increasingly elusive basic need for many.

“The troubling irony, however, is that these rent reviews rarely align with tenants’ earning capacity. Salaries are either stagnant or, where increased, fail to match the pace of inflation, leaving households vulnerable. The gap between rent obligations and income growth has widened so sharply that affordability has become a pressing crisis. For a significant portion of the population, rent now consumes a disproportionate share of monthly earnings, leaving little for other essentials and pushing many towards overcrowded, inadequate housing or outright displacement.

Addressing this pervasive challenge requires a deliberate, multi-pronged response.

Affordable “housing delivery must be prioritised through mass housing schemes supported by government and private developers. Policy innovations such as incentivising longer, stable leases, regulating the spread of short-term rentals, and publishing a transparent rent index for both rents and property sales would bring sanity and predictability to the market. Additionally, construction costs can be reduced by encouraging the use of local building materials and granting tariff relief on essential inputs. Without such systemic interventions, the housing affordability gap will continue to widen, deepening social and economic inequalities.”

Meanwhile, the president of the Association of Housing Corporations of Nigeria, Eno Obongha, noted that the reasons for the rent hike were not far-fetched.

He said, “When demand is higher than supply, prices must go up. The supply end is limited because building material prices are very high. Most of the imported materials are also affected by the dollar value. The processes for obtaining housing loans from development finance institutions are equally cumbersome.

“There must be a deliberate effort by federal, state and local governments in Nigeria to increase the housing stock for the benefit of medium- and low-income earners. The housing deficit affects the medium- and low-income earners, and these days, because of the economic hardship, many high-income earners are leaving big properties to compete for two- and three-bedroom units. Finally, there are no rent control laws to regulate rents charged by landlords.”

A builder, Awolusi Femi, noted that the steady rise in rental prices across the country is driven by a complex mix of economic and structural factors.

He said, “One of the most pressing issues is the increasing cost of land. As urban centres expand and demand for prime locations intensifies, the value of land continues to soar. Land scarcity in major cities has further heightened competition, making property acquisition an expensive venture. This, in turn, pushes landlords and developers to pass on these costs to tenants in the form of higher rent, making housing less affordable for the average citizen.

“Beyond land costs, the relentless surge in building material prices plays a significant role. Materials such as cement, steel, roofing sheets, and finishing products are experiencing constant price hikes, largely influenced by inflation, import dependence, and supply chain disruptions. These rising costs not only impact new construction projects but also existing buildings. Landlords are compelled to adjust rents upward to cover maintenance expenses, since even routine repairs now require expensive materials. Consequently, tenants are bearing the brunt of these inflationary pressures.

“Another key factor is the rising cost of labour, both skilled and unskilled. Masons, carpenters, plumbers, electricians, and general labourers have steadily increased their charges due to the high cost of living and limited availability of trained professionals. For property developers, this translates to higher project costs, while for landlords, it means greater expenses in maintaining or upgrading their properties. Inevitably, these additional costs are transferred to tenants through higher rental fees. Altogether, the combination of expensive land, soaring material prices, and costly labour has created a rental market that is becoming increasingly unsustainable for many households.”

Historical context

Nigeria’s rent crisis didn’t happen overnight. Analysts trace the surge to several long-standing issues. Urban migration is one of them, as Nigeria’s cities have swelled dramatically since the 1990s. Lagos alone receives an estimated 600,000 new residents annually.

Inadequate housing supply is also another issue. Government housing schemes have consistently fallen short of targets. The national housing deficit is estimated at 28 million units. High construction costs are considered too, as the prices of cement, iron rods, and finishing materials have soared due to inflation and foreign exchange challenges.

Speculative real estate is an issue, as developers and landlords often price properties far above market reality, targeting elites and expatriates rather than average citizens.

Behind the numbers are real struggles. Families are increasingly forced to relocate to the outskirts, endure longer commutes, or downgrade to smaller apartments. Many middle-income earners now spend over 40 per cent of their salary on rent, far above the 25–30 per cent recommended globally.

Some households face eviction after failing to meet sudden rent hikes. Others are pushed into overcrowded flats, worsening urban slum conditions. For younger Nigerians, the dream of independent living is increasingly delayed, with many staying longer in family homes.

Experts speak

Acting Dean of the Faculty of Management and Social Sciences at West Midlands Open University, Lagos, Dr Timilehin Olubiyi, described the situation as alarming. “Rent now consumes a disproportionate share of income. Families are forced to choose between paying rent and meeting basic needs like healthcare and education,” he said.

Olubiyi proposed three urgent steps, including affordable housing policies. He said the government should partner with private developers to build low- and middle-income homes and called for rent control measures by limiting annual increases to prevent arbitrary hikes.

On stricter urban planning, he said there should be infrastructure expansion to new districts to ease pressure on city centres. He emphasised that Nigeria’s housing crisis is not insurmountable, stating that “with the right policies, investment, and community involvement, affordable housing can become a reality.”

Possible solutions

Experts noted that public-private partnerships that entail joint projects between the government and private developers can increase housing stock. Rent-to-own schemes that are already tested in parts of Lagos and Abuja could be expanded nationally.

Also, offering tax breaks to landlords who maintain affordable rents could encourage moderation. Cooperative housing models where communities pool resources to build shared housing can provide alternatives for low-income families. Digital transparency, where online rent portals are concerned, could standardise pricing and reduce exploitation by agents.

Conclusion

Nigeria’s rent crisis is worsening by the year. With two-bedroom flats averaging ₦2.5m, millions of households now struggle to secure decent shelter. The disparities, ₦250,000 in some Benin-City neighbourhoods versus ₦20m in Ikoyi, highlight a deeply fragmented housing market.

Unless urgent steps are taken, the affordability gap will widen, social tensions will increase, and urban poverty will deepen. The question now is whether government and private stakeholders can act quickly enough to prevent the dream of decent housing from slipping further away for millions of Nigerians.

For many tenants across the country, the next rent cycle could determine not just where they live, but whether they can continue to live with dignity at all.

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Reps to mediate in PENGASSAN, Dangote refinery dispute

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The House of Representatives on Tuesday resolved to intervene in the recent face-off between members of the Petroleum and Natural Gas Senior Staff Association of Nigeria and the Dangote Refinery, which had disrupted petroleum product distribution nationwide.

The resolution of the House followed the consideration and adoption of a motion of urgent public importance co-sponsored by Kano and Sokoto lawmakers, Alhassan Doguwa and Abdussamad Dasuki, respectively, at Tuesday’s plenary.

Titled: “Need to protect private investment from adversarial unionism,” the lawmakers drew the attention of their colleagues to the significance of the Dangote Refinery, describing it as the largest private petroleum refinery in Africa.

The face-off between PENGASSAN and the Dangote Refinery led to an industrial action which commenced on September 29, 2025, disrupting the operations at the $20bn refinery.

It also led to a disruption in Nigeria’s crude oil production, with a reported daily loss of approximately 200,000 barrels over three days.

The disruption worsened the petroleum supply situation across the country, resulting in scarcity and long queues at filling stations in several states, resulting in severe hardship for millions of Nigerians.

Speaking on the motion, Doguwa, who represents Doguwa/Tudun Wada Federal Constituency, Kano State, stressed the need to protect the Dangote Refinery given its strategic significance to the nation’s economy.

He said, “The House is aware that the Dangote Refinery is a strategic private investment of immense national importance, with the potential to guarantee energy security, reduce import dependency, generate employment, and conserve foreign exchange.

“We are aware that the Dangote Refinery operates within a Free Trade Zone, and therefore falls under the regulatory framework of the Nigeria Export Processing Zones Authority, particularly Section 18(5) of the Nigeria Export Processing Zones Act which clearly states that ‘Employment in the free zone shall be governed by rules and regulations made by the Authority and not subject to the provisions of any enactments relating to employment matters.’

“The House is concerned that actions by labour unions that disregard the legal protections conferred on Free Zones under the NEPZA Act not only constitute a breach of law but also create a hostile investment environment that may deter future local and foreign investors;

“We are worried that if private investments of strategic national importance are continually subjected to unlawful disruptions by adversarial unionism, Nigeria risks not only the failure of key economic assets but also the erosion of investor confidence necessary for national growth and development.”

In his contribution, the member representing Chibok/Damboa/Gwoza Federal Constituency, Ahmad Jaha, urged the House to tread carefully, adding that the call for a probe as prayed by the motion was ill-timed.

Following the adoption of the motion, the House urged its leadership to broker peace between the two parties in the interest of the nation.

It also urged the Federal Ministries of Labour and Employment, Industry, Trade and Investment, as well as Justice, to “Jointly develop and implement a national framework or set of policies to safeguard private investments of strategic national importance from adversarial and unlawful union actions.”

It further charged the Federal Ministry of Justice and NEPZA to ensure full enforcement and compliance with the provisions of Section 18(5) of the Nigeria Export Processing Zones Act in all relevant Free Zone operations.

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Debt dispute: Drama as Max Air pilot refuses to fly

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Drama unfolded at Maiduguri International Airport on Monday as over 100 Max Air’s passengers of were left stranded for hours due to a face-off between the airline’s pilots and management over unpaid debts.

The incident caused panic and confusion among travellers who had already boarded the aircraft and were awaiting departure.

According to an eyewitness who refused to give her name for fear of the unknown, the pilots refused to proceed with the flight, which the flight attendants blamed solely on the pilot’s unpaid entitlements.

This shocking development held the scheduled airline to ransom for some hours, sparking tension among the passengers, with the development forcing them to disembark in frustration after being informed of the dispute and refusal of the pilot to fly.

Another eyewitness who gave his name simply as Shola told The PUNCH that the pilots were protesting unresolved financial issues with the airline.

The traveller who was aboard the affected flight confirmed that boarding had been completed when the airline staff members suddenly instructed passengers to leave the aircraft and return to the terminal.

“We had all taken our seats and were waiting to take off when they asked us to disembark,” the source said.

According to the same source, passengers waited for several hours in uncertainty before the matter was eventually resolved.

“There was tension initially, but after some time, we were told the issue had been settled. We were later asked to re-board the aircraft,” the traveller said.

Confirming the development, the Director of Public Affairs and Consumer Protection at the Nigeria Civil Aviation Authority, Michael Achimugu, confirmed the incident, adding that the dispute appeared to have been resolved amicably by both parties without regulatory intervention.

“The flight later departed around past 2:00 pm, which means the issue was resolved. Since it was an internal matter, and the aircraft eventually flew, we consider it closed.”

The NCAA spokesman said. “We typically don’t intervene in salary-related disputes unless a formal report is submitted.”

He further emphasised that while the NCAA regulates safety and operational standards, issues such as wage disputes between staff and management are typically handled internally by the airline unless safety is compromised.

Max Air’s Executive Director, Shehu Wada, also confirmed the development, describing it as a result of miscommunication.

“It is a communication gap issue, and it has been resolved. That is how I can describe it basically,” he said.

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Petrol tops Nigeria’s imports with 613.6m litres in one year

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Nigerians consumed a total of 613.62 million litres of Premium Motor Spirit, popularly known as petrol, for transportation, power generation, and other domestic uses between October 2024 and October 10, 2025.

This is according to fresh data obtained from the Nigerian Midstream and Downstream Petroleum Regulatory Authority obtained by our correspondent on Monday in Abuja.

Despite the ramp-up in operations at the Dangote Petroleum Refinery and other local plants, imported petrol still accounted for a larger share of the country’s total fuel supply during the period under review.

Out of the total 613.62 million litres of Premium Motor Spirit consumed between October 2024 and October 10, 2025, the NMDPRA data revealed that 236.08 million litres were supplied by domestic refineries, while 377.54 million litres came through imports.

The figures indicate that imported petrol still accounted for the bulk of Nigeria’s fuel needs within the period, with imports dominating supply, contributing about 63 per cent of Nigeria’s PMS needs.

While local refineries, led by the 650,000-barrels-per-day Dangote Refinery, provided the remaining 37 per cent, marking a significant improvement from the previous year’s levels.

The NMDPRA data further indicated that domestic production rose steadily from 9.62 million litres per day in October 2024 to 18.93 million litres per day by October 2025, showing a near 100 per cent increase within the one-year period.

Conversely, import volumes declined sharply from 46.38 million litres per day in October 2024 to 15.11 million litres per day in October 2025, reflecting a 67 per cent drop.

A monthly breakdown of the data revealed a steady decline in petrol importation and a gradual rise in local supply. Import volumes dropped from 46.38 million litres in October 2024 to 36.39 million litres in November and 38.90 million litres in December.

By January 2025, import figures had fallen further to 24.15 million litres, and though there were slight fluctuations in subsequent months – 26.79 million litres in February, 25.19 million litres in March, and 23.73 million litres in April – imports rebounded temporarily to 37.37 million litres in May.

Thereafter, volumes declined again, with 28.54 million litres imported in June, 35.07 million litres in July, 20.66 million litres in August, 19.26 million litres in September, and a year-low of 15.11 million litres as of October 10, 2025.

In contrast, domestic refining output showed notable improvement within the same period, rising from 9.62 million litres in October 2024 to 19.36 million litres in November and 13.13 million litres in December.

The upward trend continued into 2025, with local supply climbing to 22.66 million litres in January and 22.42 million litres in February and maintaining over 20 million litres in both March (20.65 million litres) and April (20.35 million litres).

Though there were minor dips to 17.85 million litres in May, 17.82 million litres in June, and 16.50 million litres in July, output surged again to 21.19 million litres in August before stabilising at 18.93 million litres in October 2025.

The figures reflect a gradual but significant shift in Nigeria’s fuel supply structure, with local refineries, particularly the Dangote Petroleum Refinery, steadily closing the gap on imports within just one year of operation.

The document further showed that total petrol supply averaged 46.6 million litres per day, comprising 29.5 million litres from imports and about 17.1 million litres from local production.

The reduction in petrol imports has also eased pressure on Nigeria’s foreign reserves, as the country spends less on importing refined products. Previously, importers required billions of dollars monthly to settle letters of credit and cover freight and insurance costs.

However, the report noted fluctuations in overall supply, with volumes dipping from 55.21 million litres in May 2025 to 34.04 million litres in October 2025, a sign that logistical constraints and periodic maintenance still affect consistent nationwide distribution.

Oil and gas analysts say the improvement coincides with the first full year of operations of the Dangote Refinery, which began large-scale production earlier in 2025 and now contributes between 15 and 20 million litres of PMS daily to the domestic market.

Since its commissioning in May 2023 and subsequent ramp-up through 2024, the Dangote Refinery has been under global scrutiny as the flagship of Nigeria’s industrial revival agenda.

In its first year of sustained operation, the refinery’s growing output has reshaped Nigeria’s fuel supply structure, reduced foreign exchange exposure, and rekindled confidence in local refining after decades of failed turnarounds at the government-owned Port Harcourt, Warri, and Kaduna refineries.

Commenting, the Chief Executive Officer of Petroleum.ng, Olatide Jeremiah, said that Nigeria’s domestic refining capacity has recorded remarkable progress in the past year, with the Dangote Refinery now supplying about 40 per cent of the country’s daily petrol consumption.

Speaking in reaction to new supply data released by the NMDPRA, the analyst said the progress underscores the growing impact of local refineries on Nigeria’s energy security.

He, however, stressed that the Dangote Refinery and other local refiners require uninterrupted access to crude oil in naira to scale up production and reduce pump prices nationwide.

“The fact that import remains the country’s major source of refined products shows that there are still unresolved issues. In the last year, domestic supply championed by Dangote Refinery has made tremendous progress with about 40 per cent of our daily consumption. Dangote Refinery needs 100 per cent access to crude in naira to increase domestic supply and drive down prices at the pump,” he said.

He lamented that despite being Africa’s biggest crude oil producer and host to the continent’s largest refinery, Nigeria still imports about 60 per cent of its daily petrol needs, a situation he described as inconsistent with the country’s energy potential.

The Petroleum.ng chief urged the Federal Government and the Nigerian Upstream Petroleum Regulatory Commission to strengthen policies that guarantee local refineries full access to domestic crude supply.

“Nigeria, the biggest producer of crude in Africa with the biggest refinery in Africa, should not be importing about 60% of its daily fuel consumption; thus, our pump prices should be amongst the lowest in the world.

The FG, through NUPRC, should continue to formulate frameworks that would allow local refiners access to crude 100 per cent. For me, that’s the recipe for availability and affordability,” he added.

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