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

Published

2 months ago

October 1, 2025

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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Business

Nigeria’s World Bank debt to hit $9.65bn

Published

30 minutes ago

December 8, 2025

Newsbreak365_Admin

World Bank loans to Nigeria between 2023 and 2025 are projected to reach $9.65bn by the end of this year as fresh approvals, ongoing negotiations, and disbursements gather pace across key sectors.

The amount covers International Bank for Reconstruction and Development and International Development Association loans only, according to an analysis of data on the bank’s website by The PUNCH. When grants are added, total World Bank support rises to about $9.77bn within the three-year window.

The International Bank for Reconstruction and Development provides loans on commercial or near-commercial terms to middle-income and creditworthy low-income countries, while the International Development Association offers highly concessional loans and grants to the world’s poorest nations.

The figures show a steady build-up of commitments with government officials pushing ahead with digital infrastructure, social protection, power, education, and health programmes while defending the concessional nature of the borrowings.

The Federal Government is expected to secure another $500m facility on December 19, 2025, under the Fostering Inclusive Finance for MSMEs in Nigeria project. The operation is being prepared for Board consideration and will be implemented through the Development Bank of Nigeria.

The borrowing cycle under the administration of Bola Tinubu began with $2.7bn in loans in 2023 across four major projects. Financing that year was dominated by power sector recovery, renewable energy access, girls’ education, and women’s economic empowerment.

The Nigeria Distributed Access through Renewable Energy Scale-up project received $750m in IDA financing to expand private sector-led clean energy access. Another $700m IDA credit was approved for girls’ secondary education in participating states. Women’s economic empowerment attracted $500m IDA through the Nigeria for Women Programme Scale Up.

The AF Power Sector Recovery operation received $449m in IBRD financing and $301m in IDA to improve the reliability of the electricity supply and restore financial sustainability in the sector. There were no grant components in 2023, so the entire amount consisted of loans.

The volume of loans rose sharply in 2024 as new approvals reached $4.25bn, representing a 57.4 per cent increase compared with the preceding year. The increase was driven largely by two policy-based operations and three separate $500m IDA investment packages.

The Nigeria Reforms for Economic Stabilisation to Enable Transformation programme provided $1.5bn in loans, split between $750m IBRD and $750m IDA, as the government sought fiscal space and protection for vulnerable populations while reforms continued.

Another $750m IBRD loan was approved for the NG Accelerating Resource Mobilisation Reforms programme to boost non-oil revenues and safeguard oil and gas receipts.

The World Bank also cleared $500m IDA each for rural road access, primary healthcare strengthening, and dam safety and irrigation programmes. The primary healthcare programme included a $70m grant, which lifted total World Bank support for 2024, including grants, to about $4.32bn.

For 2025, the data shows $2.695bn in loans at various stages of project processing alongside $52.18m in grants. Nine operations have already been identified across financial inclusion, digital broadband, health, education, social protection, and institutional capacity.

The largest facilities are tied to $500m IDA each for broadband expansion, basic education, and livelihood support for poor and vulnerable households. Health security, nutrition, and internally displaced communities account for another $630m, while procurement standards receive $65m from IDA.

A $400m IBRD component is included for the MSME finance programme, along with a $100m IDA portion. Also, the Central Bank of Nigeria is to receive a $6.8m grant to strengthen technology-enabled oversight of the banking sector and deepen understanding of payment and remittance systems.

Compared with 2024, the 2025 loan pipeline represents a decline of about 36.6 per cent, though it is broadly in line with the $2.7bn reached in 2023. Across the three years, IDA loans account for about $7.30bn while IBRD loans contribute roughly $2.35bn. Grants add another $122.19m, rising from zero in 2023 to $70.01m in 2024 before easing to $52.18m in 2025.

The portfolio highlights the scale of financing underpinning Nigeria’s reform programme as authorities continue to seek low-cost multilateral resources even as concerns persist over debt sustainability and the need to strengthen domestic revenue mobilisation.

The PUNCH earlier reported that Nigeria’s stock of World Bank International Development Association loans rose to $18.5bn, making it the largest IDA borrower in Africa and the third-biggest in the world.

Fresh data from the IDA’s unaudited financial statements for the third quarter of 2025 confirmed that the country has maintained the ranking it first attained in 2024, when it climbed to third place after overtaking India. The country was the fourth-largest borrower in 2023.

According to the report, Nigeria’s exposure increased from $17.1bn in September 2024 to $18.5bn in September 2025, representing a rise of $1.4bn or 8.2 per cent. The increase reflects the country’s heavier reliance on concessional financing to plug infrastructure gaps, stabilise its reform programme, and support social spending amid volatile oil earnings.

Economists warn that the rising loan pipeline, while potentially beneficial for long-term development, could deepen fiscal pressures if not matched with stronger domestic revenue mobilisation and prudent expenditure management.

Lagos-based economist, Adewale Abimbola, reacting to the rising World Bank commitments to Nigeria, said loans from multilateral institutions such as the World Bank are largely concessionary, with interest rates typically below market levels and longer repayment tenors.

He noted that the critical question is not whether Nigeria should be borrowing, but whether the loans are structured and deployed effectively. “If it’s concessionary and tied to viable projects with medium-term revenue prospects, I don’t think it’s a bad idea,” Abimbola explained. “Borrowing isn’t bad; what matters is utilisation.”

He stressed that the economic impact of such loans depends on how well they are channelled into projects that can generate sustainable growth, strengthen revenue, and improve public services over time.

Development economist and CEO of CSA Advisory, Dr Aliyu Ilias, has expressed strong reservations about Nigeria’s rising debt profile in light of the World Bank’s fresh commitments.

While acknowledging that borrowing is not inherently bad for an economy, he questioned the rationale for taking on more debt at a time when the government claims to have higher revenues. Ilias pointed out that following the removal of fuel subsidy, Tinubu had announced increased revenue inflows.

He added that both the Federal Inland Revenue Service and the Nigeria Customs Service had declared revenue surpluses, further suggesting the government should be able to fund projects without resorting to heavy borrowing.

According to him, the impact of the current borrowing spree is being felt in reduced public service delivery, particularly in capital expenditure, as debt servicing now consumes a significant portion of available revenue.

He warned that this crowding-out effect limits job creation, fuels inflation, and worsens Nigeria’s foreign-exchange imbalance, with the naira trading at historically low levels.

He argued that given the claimed revenue surpluses, the Tinubu administration should not have needed to borrow within its first two years in office, let alone at the scale currently being witnessed.

Economist and CEO of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, said the rising World Bank commitments to Nigeria should be examined within the context of the country’s Medium-Term Expenditure Framework and annual budgets, which already provide for both domestic and foreign borrowing.

He noted that deficit financing is a common feature of budgets worldwide and is not inherently wrong, as it allows governments to make critical investments without waiting to generate all the required revenue upfront.

However, he stressed that borrowing should always be backed by sound economic reasoning and clear development priorities. Yusuf emphasised that the key issue is debt sustainability, which depends primarily on the country’s revenue capacity to service its obligations.

Without strong cash flow to meet repayment schedules, he warned, Nigeria risks falling into a vicious cycle of borrowing to service existing loans, thereby perpetuating fiscal vulnerability. He said it is essential that projects funded by loans directly support the economy’s capacity to repay.

According to him, Nigeria should be cautious with foreign loans due to the exchange rate risks they pose, noting that domestic debt is generally easier to manage. Excessive foreign borrowing, he warned, could put pressure on the country’s reserves and further weaken the exchange rate. He stressed that a disciplined approach to debt sustainability will be crucial for Nigeria to avoid long-term fiscal distress.

Meanwhile, data from the Debt Management Office showed Nigeria’s external debt stood at $46.98bn as of June 30, 2025. Of this amount, the World Bank Group accounted for $19.39bn—comprising $18.04bn from the International Development Association and $1.35bn from the International Bank for Reconstruction and Development.

This means the World Bank holds 41.3 per cent of the total, reinforcing its outsized role in funding Nigeria’s development programmes.

The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, recently called on the World Bank to support Nigeria’s Renewed Hope Ward Development Programme, a grassroots initiative he described as central to achieving President Bola Tinubu’s target of building a $1tn economy by 2030.

The minister praised the World Bank for its consistent backing of Nigeria’s reforms, describing the last 28 months of partnership as both challenging and transformative. “The World Bank team has collaborated with us not just as partners but as members of the same team. We could not have achieved the results we have today without your support,” he said.

Speaking with the minister in August 2025, the World Bank Country Director, Matthew Verghis, commended Nigeria for making bold decisions that could reset its development trajectory.

“Nigeria’s recent decisions represent a critical moment. Such choices are not easy, but they create opportunities for a new path,” Verghis said. “The World Bank stands ready to continue supporting Nigeria in maintaining these reforms and increasing their impact.”

However, The PUNCH also reported in September 2025 that about six loans worth $2bn, signed for Nigeria by the World Bank in 2024, were yet to be disbursed nearly a year after the bank’s approval.

Responding to an enquiry by The PUNCH, the Senior External Affairs Officer at the World Bank, Mansir Nasir, noted that funds for projects financed by the institution were not disbursed at once but in instalments, depending on the nature of the project and financing instruments.

“Projects financed by the World Bank run for a certain time, which varies depending on the specific project. The total amount of the project is not disbursed as a one-off, but rather in instalments depending on the financing instruments—e.g., IPF or PforR—which require certain milestones for specific disbursement values.

“If you look at the portal, you will see the specific disbursement timelines and values,” Nasir added. He further stated that before a new project can begin disbursement, it must meet certain agreed conditions between the Federal Government and the World Bank.

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Business

PENGASSAN-Dangote rift widens over salary suspension

Published

2 hours ago

December 8, 2025

Newsbreak365_Admin

The Dangote Petroleum Refinery has stopped the monthly salaries of the engineers sacked in September during its face-off with the Petroleum and Natural Gas Senior Staff Association of Nigeria.

In a bid to address this, PENGASSAN said it is engaging the Dangote Group to resolve the matter amicably instead of resorting to another industrial action.

Findings by The PUNCH revealed that the salaries were halted following the refusal of many of the engineers to accept their redeployment to Zamfara, Borno, Benue, and Sokoto states, among others.

Some of the workers, who spoke on condition of anonymity because of the sensitivity of the issue, had earlier said individuals were sent to a coal mine in Benue, concrete road construction sites in Borno and Ebonyi states, as well as rice plants in Kebbi, Niger, Sokoto, and Zamfara.

While a few workers were said to have accepted the redeployment, many rejected it, relying on assurances from PENGASSAN that the crisis would be resolved through dialogue.

It was learnt that the Dangote Group issued a warning signal in October by slashing the wages of the affected workers before withholding their November salaries completely.

A senior official of the Dangote Group confirmed to our correspondent that the company would no longer continue paying those who rejected the redeployment offers.

While the affected workers described the non-payment of their salaries as “victimisation”, the official, who did not want his name in print due to the lack of authorisation to speak on the matter, wondered why the company should keep paying individuals who had refused the alternative placements offered.

“Those whose services were terminated were given an opportunity to work in our other projects, such as rice mills, concrete road construction, and coal mines.

All those who accepted have started working.

“If a newspaper terminates the services of an employee, and if it even goes out of its way to provide alternative employment, but the employee is not interested in availing the alternative employment, will it keep paying his/her salary?” the official said.

Recall that PENGASSAN had shut down oil and gas facilities in September over allegations that 800 refinery workers were fired for volunteering to be members of the union. However, the Dangote refinery said it only sacked a few workers who were sabotaging the facility, describing the exercise as a reorganisation.

The shutdown caused nationwide losses in oil and gas production and contributed to a drop in power generation until the Federal Government intervened and directed the redeployment of the affected workers.

In October, the sacked engineers were invited to pick up their letters at the Ikeja office of the Dangote Group. One of the letters sighted by our correspondent was titled ’Offer of Trainee Engagement’ and carried the letterhead of Dangote Projects Limited.

It reads partly: “Based on your performance at the assessment and subsequent interviews held with you, we are pleased to engage you as Engineer Trainee (Mechanical Engineering) for the coal project we are executing at Okpokwu, Benue State. This engagement shall be subject to the following conditions: You will report to your work location within 14 days upon receipt of this letter.

“You will undergo classroom training and hands-on training in the construction, commissioning, and operation of our Coal Project at Okpokwu, Benue State. Your training will be for a period of two years, and it will be reviewed periodically. You will be required to submit reports on your learning and progress. The objective of the training is to impart to you skills and to enable you to take up a position of responsibility in the organisation.”

Many of the engineers expressed concerns about the posting, especially to places perceived to be security hot spots. “The issue with the re-employment is that, firstly, there’s no address to report to on that letter. No office to report to in the states we were posted to. Secondly, those are security hot zones.

“Thirdly, in the letter, it is stated that if you don’t report within 14 days, your employment will be terminated, but no office location was given, and they don’t exist when we checked on Google Maps. So, if we accept the letters, we are basically terminating our employment by ourselves because there’s no office in those states to report to. PENGASSAN has basically told us not to accept the letters. We should let them continue with their talks,” they told The PUNCH.

Speaking during a briefing last week, the PENGASSAN President, Festus Osifo, said the union was still engaging the Dangote refinery to have the issues resolved.

Osifo said, “Since our last national industrial action, we have been engaging them in a lot of conversations, but the issues are not fully resolved. There are still a lot of pending issues. The NEC decided that, yes, let us still continue that process by pushing those issues by engaging in a dialogue to resolve the issues, and by also engaging all our social partners and stakeholders to get the issues resolved. And we hope and pray that these issues will be resolved at the table.

“These issues should be resolved in mere jaw-jaw so that we will not go back to Egypt. But as PENGASSAN, you know, we don’t shy away from doing what is right. But our preference is to get the subject resolved over the negotiation table.”

A senior management officer told our correspondent on Sunday that PENGASSAN had the right to make its requests, but the company also had the liberty to make decisions that suited its business.

“They (PENGASSAN) have their privilege to ask. We can’t deny the opportunity to anyone to ask anything they wish. But we, too, have the privilege to state what we want,” the official said.

Some of the engineers lamented the turn of events. They disclosed that there was “an agreement that they would send us to oil and gas companies owned by Dangote.”

According to them, it was initially agreed that their salaries would be paid until the issue was resolved.

“But we noticed a reduction in our October salaries. We were not paid for November when others have been paid. That’s clear victimisation. It was agreed that Dangote would keep paying us until the matter is resolved, but it seems they have breached the agreement already,” they said.

As the stalemate lingers, the affected engineers said they are now caught between losing their livelihoods and accepting deployments they consider unsafe and irregular, while PENGASSAN continues to push for a negotiated settlement to prevent another nationwide shutdown.

With both sides holding firmly to their positions, the resolution of the dispute now hangs on the outcome of ongoing engagements between the union and the Dangote Group.

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Business

VIDEO: Stop Buying Rolls-Royce, Use The Money To Build Industries Instead – Dangote Tells Wealthy Nigerians

Published

19 hours ago

December 7, 2025

Oluwagbenga Olaoye

Olarenwaju disclosed that Jonathan betrayed a gentleman’s agreement with Atiku, hence the former Vice President moved against him in 2015.

Aliko Dangote, Chairman of Dangote Group, has urged Nigeria’s elite to channel the money spent on luxury items like Rolls-Royce cars and private jets into building industries that boost economic growth and generate jobs.

Speaking with The PUNCH after a meeting with President Bola Tinubu at Aso Rock Villa on Saturday, Dangote lamented the culture of extravagant consumption, stressing that the nation’s development depends heavily on the responsibility of local investors.

“If you look at the Nigerian policy before, during the military, everybody from the president downwards used Peugeot 504. That was the highest. So, when a president is using 504, you cannot come as a commoner, as a businessman, or whoever you are, to be using Rolls-Royce,” he said.

Dangote criticised the proliferation of private jets at Nigerian airports, arguing that such wealth would be better invested in productive ventures.

“If you have money for a Rolls-Royce, you should go and put up an industry in your locality or anywhere in Nigeria where there is a need.

“It pains me when I go to the local airport, whether here or in Lagos, and even finding a parking space for your plane is impossible because everybody has a private jet. Those private jets could be in industries creating jobs,” he added.

Dangote emphasised that national development requires a strong focus on manufacturing and agriculture, supported by robust banking systems.

He also highlighted the urgent need for job creation, noting Nigeria’s population grows by 8.7 million babies every year, which demands significant investments in infrastructure and power.

“Some people may not know the position of the country as we speak. Population growth is 8.7 million babies every year. So we need to deliver power, infrastructure, and other essentials,” he said.

The billionaire also framed tax compliance as both a civic duty and a partnership with the government.

“When you have a company, the number one shareholder is the government. We need an enabling environment from the government, and as corporate citizens, we must pay our taxes. I cannot cheat my partner. If I pay tax, children can go to school and hospitals can function. The government has huge demands, and we must do our part,” he added.

The businessman dismissed what he described as over-reliance on foreign investors, insisting that no external investor would commit to Nigeria without strong domestic participation.

He said, “We should stop calling for foreign investors. No foreign investor will come here unless domestic investors are active. Good policies, governance, and rule of law attract local investors, and foreign investors follow to partner or establish their own operations.

Dangote reiterated that industrialisation must be led by Nigerians, saying “We must industrialise our country. Nobody will do it but us. Once we industrialise, foreigners will partner with us or invest in Nigeria. We must remove both real and perceived risks to investment.”

The businessman also revealed that the Dangote Refinery would soon produce surplus volumes, with projections indicating that by February, it will supply 15–20 million litres more than Nigeria needs.

This will allow exports to neighbouring countries, reducing fuel scarcity across West Africa.

“We are working to make Nigeria the refining hub of Africa. African countries import products, and we want to ensure that whatever we consume is produced locally,” he said.

Earlier in October, Dangote had also encouraged Nigerians to embrace homegrown products as a way to strengthen the economy and create jobs.

"If you have money to buy Rolls-Royce, you should take that money and go put up an industry in your locality or any part of the country. Everybody has a private jet. Those private jets should be in industries so we can create jobs." — Alike Dangote, chairman of Dangote Group pic.twitter.com/fKx4dpQiKU

— TheCable (@thecableng) December 6, 2025