Key Takeaways
- Tenants in the FCT report rent increases of 50% to 100% in the last three years, coinciding with infrastructure development and economic reforms.
- Landlords are accused of leveraging public infrastructure projects, built with taxpayer money, to justify arbitrary rent hikes.
- Additional charges like agency, legal, and service fees can add 20-35% to total rental costs, exacerbating the affordability crisis.
- The Real Estate Developers Association of Nigeria (REDAN) highlights the absence of a regulatory law for the real estate sector, despite a bill being passed by the 9th National Assembly but declined by the President.
- Human rights lawyer Deji Adeyanju has called for a state of emergency in the housing sector and the establishment of a Special Presidential Taskforce on Rental Reform.
Residents of Nigeria's Federal Capital Territory (FCT) are sounding the alarm over an escalating housing affordability crisis, with many accusing landlords of blatant exploitation. A cross-section of tenants, from Apo to Karu, lament that rent prices have surged by an alarming 50% to 100% in the past three years, a period marked by significant infrastructure development and economic shifts like fuel subsidy removal and exchange rate unification.
The core of the tenants' frustration lies in the perceived opportunism of property owners. Basil Bature, a resident of Apo Resettlement, recounted how a two-bedroom apartment that cost N1.5 million two years ago now demands N3 to N4 million. 'Immediately Wike finished constructing this Apo road, landlords just capitalized on it and started increasing rent as if it is their money that was used to construct the road. Honestly, I am still questioning the reason behind this act because it is pure exploitation,' he lamented.
Similar stories echo across the FCT. Mary Musa in Jahi saw her one-bedroom rent jump from N1 million to N1.5 million, with two-bedroom and three-bedroom apartments experiencing proportional increases, all 'without any improvement work done in the house.' She attributed this solely to 'beautiful roads with so many linkages to Gwarimpa and Katampe and other part of Abuja.' Abigail Bawa in Wuye shared a similar experience, with her one-bedroom flat rising from N2 million to N3.5 million after a new flyover connected Wuye and Wuse. 'The man did not do any renovation, he did not put anything new in the house. He just woke up and increased rent because there is now easy access from Wuye to the city center. I personally see this as exploitative and unfair,' Bawa stated, highlighting the plight of many whose wages have remained stagnant despite soaring living expenses.
Compounding Woes: Agency and Legal Fees
Beyond the base rent, tenants face a labyrinth of additional charges that significantly inflate their total housing costs. Agency fees, legal fees, caution deposits, and service charges are now the norm, often adding between 20% and 35% to the overall expense. Adeife Moses, a businesswoman in Lokogoma, shared how her self-contained apartment's rent, after negotiation, settled at N900,000, but with added fees, the total cost 'shot the rent to N1.4 million. You can imagine that these charges are even taking almost half of the rent,' she exclaimed.
This financial burden is forcing many to make difficult choices. John Bassey, a Gwarimpa resident whose three-bedroom rent surged from N3 million to N5.5 million, noted, 'My salary alone cannot foot all my bills with my family including this exorbitant rent. A lot of people are moving farther away from the city centre because they can no longer afford rents in Abuja.' This displacement leads to increased commutes and a reliance on secondary income streams, with some civil servants resorting to using their cars for taxi services to cope with the unbearable cost of living.
Landlords' Defense and Regulatory Gaps
In their defense, landlords attribute the rent hikes to the escalating cost of building materials. Ferdinand Onouha, a landlord, pointed out that cement prices have soared from N4,000 to N10,000 in the last three years. 'When we hear tenants complaining, we also understand their pains, but they also don't want to understand with landlords,' he argued, adding that infrastructure development naturally boosts property value. Ganiyu Ajibola, another landlord, echoed this sentiment, stating, 'When your property is located at a very good location with roads, good security and solar lightening, you will see influx of tenants, compared to an area that don't have good roads. So, I see it as just part of business.'
However, the underlying issue, according to Aliyu Wamakko, immediate past president of the Real Estate Developers Association of Nigeria (REDAN), is the absence of a comprehensive law regulating the real estate and tenancy sector. He revealed that a bill, 'Real Estate Regulatory Council of Nigeria, 2023,' aimed at regulating the sector and curbing money laundering, was passed by the 9th National Assembly but declined assent by the President in June 2023. This regulatory vacuum, he warned, allows landlords to 'keep increasing the prices of rents without any fear.'
Calls for Urgent Government Intervention
Human rights lawyer Deji Adeyanju has intensified calls for President Bola Ahmed Tinubu to declare a state of emergency in the housing sector. In an open letter, Adeyanju warned that a 'predatory' housing market is stripping Nigerians of their dignity and pushing many into poverty. Citing constitutional provisions and international covenants on adequate housing, he highlighted how the current situation, characterized by 'unbridled, hyper-inflationary, and predatory' practices, violates citizens' fundamental rights.
Adeyanju's proposals include establishing a Special Presidential Taskforce on Rental Reform, headed by the Minister of Housing and Urban Development, with a 90-day mandate to draft a comprehensive National Housing and Tenancy Policy and an Executive Bill on fair rent standards. This, coupled with calls from tenants like Christopher Terungwa for legislation to regulate agents' activities and property valuations, underscores the urgent need for systemic reform.
Why This Matters
The escalating rent crisis in the FCT is not merely an economic issue but a profound social challenge, threatening the stability and well-being of countless families. Without immediate and decisive government intervention, including robust regulation and affordable housing initiatives, the dream of decent shelter will remain out of reach for many, further exacerbating inequality and social unrest in Nigeria's capital.