Understanding the Rent Crisis in Nigeria: Causes, Trends, and Solutions

As a finance enthusiast, I recently took a closer look at the rent crisis in Nigeria, and the findings were quite alarming. According to data from the Nigeria National Bureau of Statistics (NBS), the
average rent for a three-bedroom apartment in Lagos has surged by over 400% in the last decade! In 2014, renting a three-bedroom apartment in Lagos cost around ₦250,000 per year. By 2024, that
figure had skyrocketed to over ₦1 million annually—a staggering 400% increase in just 10 years!

What’s driving this dramatic rise? The rapid urbanization of cities like Lagos, Abuja, and Port Harcourt
plays a significant role. As more people flock to these cities in search of better opportunities, the demand for housing grows, driving up prices.
Another key factor is the severe lack of affordable housing. The NBS reports that Nigeria faces a
housing deficit of over 17 million units. With such a shortfall, it’s no wonder rents are soaring.

So, what can be done? As someone passionate about personal finance, I always recommend monthly
savings as a strategy to manage rent effectively. Even setting aside ₦10,000 or ₦20,000 each month
can make a huge difference.

For instance, if your annual rent is ₦500,000, saving ₦45,000 monthly can help you accumulate over
₦500,000 in a year. That’s enough to cover your entire rent for the year! By adopting a disciplined
saving approach, you can gain control over your finances and avoid the stress of last-minute rent
payments. Trust me, it’s a game-changer.

Tijani Azeez

Finance Manager

Rentspace technologies