Indications have emerged that high rental charges have forced millions of Nigerians to live in suburbs, subpar housing, slums and makeshift camps as affordability gap widens in the housing sector.
Many Nigerians attributed the current surge in living costs, business closures, and job losses to detrimental policy, which they say have undermined national productivity and driven millions deeper into poverty and hunger.
A cursory look at president Bola Tinubu’s administration, there’s no doubt that the housing sector is grappling with high rental charges, high Inflationary growth, weak purchasing power and dwindling macroeconomic fundamentals.
The housing sector is currently plunged in a cycle of high inflationary growth, high exchange rate and a volatile market of dwindling purchasing power that has stifled growth of construction activities across the country.
Construction experts and real estate developers are of the view that Nigeria’s real estate market is facing myriads of rental challenges which is stifling its growth.
This confluence of factors has forced many families and low income households to relocate to suburbs as the sector continues to lose its steam over homeownership plan which are out of reach for many working population Nigerians.
High rental charges have worsened poverty levels amongst the middle class, low income class and by far widening the inequality gap, and left a significant portion of the population without basic shelter.
This problem is acutely pronounced in the urban cities, and has reached an alarming state that urgent intervention is needed to address and provide a long-lasting solution.
Stakeholders believe that without urgent interventions, high rental charges in the real estate sector will worsen and bridge the gap of the real estate sector. They equally called for coordinated action to lower material costs, expand financing, and accelerate housing delivery.
The stakeholders further draw parallels on the real estate sector citing weak purchasing power, high rental charges, high agency fees, service charges and caution fees which has rendered many renters to live in suburbs and subpar housing.
They warned that soaring inflation, rising construction costs and dwindling consumer income are stalling development and threatening the sector’s long-term sustainability.
According to the chairman, Periwinkle Residences Limited, Dr. Chiedu Nweke, and MD/CEO, Swampsea Construction Company Limited, Dr. Chiedu Nweke buttressed that, the situation in the real estate sector is dire and the players in the sector are not finding it easy especially in development, material sourcing, marketing, financing or cost of funds and others.
He highlighted several critical policy decisions that have far-reaching consequences on the sector’s growth such as the removal of the petrol subsidy, monetary policy adjustments, and overall economic instability have combined to strain both households and businesses.
Architect and estate developer, Arch Olawale Babatunde stressed that, the development in the real estate sector has taken a toll on construction finance and budget, adding that, contractors and developers are renegotiating and repricing budget bids due to price variation in the market.
He averred that the price volatility has eroded investors confidence such that remittances into the sector is now at the barest minimum. He stated that people can only invest in land or housing when their purchasing power is strong while noting that, for Nigeria struggling to afford basic necessities and household needs, real estate investment is the least of their worries.
“These things impact negatively on the real estate sector because 85 per cent of every building component is imported and the high cost of exchange rate weighs negatively on the development of the real estate. You can see that even people who sell on land don’t sell any more because they no longer pay,” he explained.
He emphasised that the removal of fuel subsidies presents a strategic opportunity for the government to reallocate financial resources toward essential infrastructure.
However, he warned that, without proper management, the ripple effects—such as rising construction costs, labour expenses, and transportation charges—could lead to the abandonment of many building projects in the near term.
On its part, the national president of the Estate Rent and Commission Agents Association of Nigeria (ERCAAN), Godwin Alenkhe commended Tinubu administration for its footprint in expanding affordable housing options.
Alenkhe further criticised the lack of a coordinated national policy for the real estate sector, adding that unregulated practices at the state-level are making it harder for Nigerians to own property—especially in major urban centres.
In the past two years, the government has made tremendous progress in the housing sector through the provision of affordable and cheaper homes for Nigerians, he said.
Alenkhe highlighted the launch of the Renewed Hope Housing Scheme, a signature initiative under the current administration designed to deliver affordable one-, two-, and three-bedroom homes in 17 states across the federation. ‘This project is based on a public-private partnership involving real estate developers and state governments,’ he noted.
However, he also pointed out major bottlenecks facing the housing sector—particularly the steep cost of local building materials.
“The only shortcoming of this administration is the incessant increase in building material prices, which has denied many Nigerians the ability to build their homes,” he said. “Local products like cement, roofing sheets, and iron rods are now priced beyond the reach of the average citizen.”
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