Residents Forced to RelocateNigeria’s economic crisis is having a devastating impact on renters in Lagos, as landlords pass on the costs of spiraling inflation, pushing residents further out of the city and disrupting their lives.
The country’s economic capital, Lagos, has long struggled to keep up with housing demand, with a population of over 20 million and 3,000 people added daily.
Rent Hikes Across the CityThe recent government-led economic reforms, including the floating of the naira currency and the removal of a fuel subsidy, have sent shockwaves through the economy. As a result, rents are skyrocketing across Lagos, affecting both the richer islands and the poorer mainland. Residents are facing significant rent increases, with some reporting hikes of up to 120%.
Human Impact
The rent crisis is having a profound impact on residents’ lives. Yemisi Odusanya, a 40-year-old cookbook author and food blogger, is struggling to cope with a 120% rent increase. “I might just have to find a way to plead with my landlord,” she said. Bartholomew Idowu, a transportation worker, is facing a 28% rent increase and is unsure where he and his children will move.
Structural Issues
The rent crisis is exacerbated by structural issues, including high interest rates that make mortgages unaffordable for most people. Developers also face a bureaucratic regulatory environment, making it difficult to build affordable housing. The result is a bifurcated housing market, where increased supply in the luxury sector doesn’t trickle down to the rest of the housing stock.
Government Reforms
The government hopes its economic reforms will eventually pay dividends, but for nearly two years, Nigerians have been struggling through the worst economic crisis in a generation. Improved public transit, such as the new rail line connecting Lagos and Ibadan, might alleviate pressure, but for now, there’s a “snowball effect” of rising prices.
Real Estate Expert Insights
Real estate experts are warning that the current spike in rents is “alarming.” Ismail Oriyomi Akinola, a real-estate agent, noted 200% jumps on the wealthy Victoria Island. “Good shelter is very key to every individual,” he said. “Not only for the rich.”