The economic turmoil in Nigeria is intensifying the housing affordability crisis in Lagos, where rising inflation is driving up rent prices, making it increasingly difficult for residents to secure stable housing.
Lagos, home to over 20 million people, is Nigeria's economic hub and has long faced a shortage of affordable housing. However, recent economic reforms, including floating the naira and removing the gasoline subsidy, have further strained the property market. Rent prices have surged, not just in wealthier areas of the city but also in lower-cost mainland districts.
The rent hikes are part of a broader trend affecting various Nigerian cities, including Abuja and Port Harcourt, where inflation and limited housing options have caused rents to spike by as much as 40 per cent. The situation is pricing out many middle-and low-income earners, forcing them into informal housing or poorly maintained accommodations. As urbanisation accelerates, the demand for affordable homes continues to outstrip supply, placing additional pressure on cities like Abuja, which are already facing a shortage of affordable housing.
In Lagos, the contrast between the luxury housing market and the unmet needs of ordinary residents is stark. While new high-end developments cater to foreign workers, the Nigerian diaspora, and wealthy locals, most Lagosians struggle to find affordable options. Luxury homes are often beyond the reach of most Nigerians, and many landlords are under financial pressure from dollar-denominated loans, which further drive up rent prices.
In addition to the rising cost of living, the inadequate infrastructure in Lagos exacerbates the housing crisis. Traffic congestion has worsened, adding hours to daily commutes for those forced to move further away from the city centre in search of affordable accommodation. While the government has initiated plans to improve infrastructure, such as new train lines and the proposed Lagos-Abeokuta railway, these measures are insufficient to meet the city's urgent housing needs.
The growing crisis has placed even more pressure on the government to address the country's housing deficit. With the population of Lagos continuing to rise, it is becoming increasingly critical for the government to prioritise affordable housing projects to ensure the city remains livable for all its residents.
The housing crisis in Lagos reflects a broader trend seen across many African cities, where rapid urbanisation outpaces the provision of affordable homes. As cities like Nairobi and Accra face similar challenges, it is clear that millions of people will struggle to find safe and stable homes without significant policy reforms and investment in affordable housing.
