Nigeria’s Rental Crisis: Two-Bedroom Flats Now Average ₦2.5m as Housing Affordability Worsens

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Nigeria’s rental market is spiralling, with the average cost of a two-bedroom apartment climbing to ₦2.5 million annually, a sharp increase from just a few years ago. The surge, driven by inflation, currency depreciation, and a chronic housing deficit, has deepened the affordability crisis confronting millions of households nationwide.

From ₦250,000 flats in Benin-City’s inner districts to ₦20m luxury units in Lagos’s Ikoyi and Victoria Island, tenants are grappling with rents that increasingly consume disproportionate portions of their income.

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Why Two-Bedroom Flats Matter

Housing experts note that two-bedroom apartments are a middle ground for young families and professionals. While single-room units are often seen as transitional, and three-bedroom flats remain out of reach for average earners, two-bedroom units once provided balance. Today, even this “modest” option is slipping away.

“In standard areas with good finishing, water supply, and stable electricity, rents range between ₦1.5m and ₦2.5m,” said Gloria Oyogho, a resident of Jos. “But in less standard areas, prices are lower — around ₦500,000 to ₦800,000. Still, hidden charges like agency and legal fees raise total costs.”

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Abuja: Prestige vs. Periphery

In the capital city, disparities are glaring. Flats in Karu, Maraba, and Kubwa range from ₦1.5m to ₦2.5m, while Maitama and Asokoro command up to ₦10m annually.

Legal practitioner Adedapo Adewuyi explained:

“These high-end districts are magnets for diplomats, executives, and top officials. Location remains the single most important factor in Abuja’s property market.”

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Ibadan, Ogun, and Enugu: Once Affordable, Now Shifting

In Ibadan, traditionally one of Nigeria’s most affordable cities, rents for two-bedroom flats have doubled in two years — from ₦300,000–₦500,000 to ₦800,000–₦1.5m.

Data analyst Oladayo Isaac recounted:

“At one inspection, 50 people showed up. The landlord raised the rent on the spot. Landlords are now copying Lagos models with arbitrary hikes and new service charges.”

In Ogun, proximity to Lagos fuels demand. Flats in Opic cost ₦2m–₦2.5m, while rural areas remain cheaper but less developed.

Enugu shows a similar spread: ₦800,000 in Emene to ₦4m in Independence Layout.

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Lagos: Nigeria’s Most Expensive Market

Nowhere is the squeeze sharper than Lagos. In Ikorodu, rents average ₦1.5m–₦2m; in Ketu and Alapere, ₦2.5m upwards; in Ikeja, ₦4.5m–₦6m; and in Ikoyi and Victoria Island, two-bedroom flats cost ₦8m–₦20m annually.

One tenant said his rent along Ogudu Expressway jumped from ₦400,000 to ₦1.2m in one cycle.

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Expert Analysis

Housing professionals link the surge to structural and economic pressures.

Ayodele Olamoju, Nigerian Institution of Estate Surveyors and Valuers:

“The rise is not mere exploitation. Inflation, currency instability, and soaring construction costs are driving rents upward. The crisis exposes gaps in housing policy and supply systems.”

Olorunyomi Alatise, estate surveyor:

“Rents rarely align with tenants’ income. Salaries are stagnant, but housing costs rise unchecked, consuming 40% or more of monthly earnings.”

Eno Obongha, President, Association of Housing Corporations of Nigeria:

“The deficit is 28 million housing units. High construction costs, weak mortgage systems, and lack of rent control laws all worsen the problem.”

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Historical Context

Analysts trace the crisis to rapid urbanisation, speculative real estate practices, and persistent government failure to meet housing targets. Lagos alone adds 600,000 new residents yearly, while government housing delivery lags behind demand.

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Human Cost

For many families, the struggle is personal. Rising rents force relocations to the outskirts, overcrowding in slums, or delayed independence for younger Nigerians. Some face eviction, while others sacrifice healthcare and education to keep up with rent.

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Possible Solutions

Experts recommend:

• Affordable mass housing through public-private partnerships

• Rent-to-own schemes at scale

• Rent control measures to curb arbitrary hikes

• Tax incentives for landlords keeping rents affordable

• Use of local building materials to cut construction costs

• Transparent rent indexes to guide the market

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Conclusion

With the average two-bedroom flat at ₦2.5m, Nigeria’s housing affordability crisis is deepening. Unless urgent reforms expand housing supply and regulate rents, millions risk being priced out of decent shelter.

As Dr. Timilehin Olubiyi, social scientist, noted:

“Rent now consumes a disproportionate share of income. Without swift intervention, the dream of affordable housing will slip further away.”