Today, I want to talk about something that hits close to home for every Lagosian, especially people currently trying to move spaces; housing. But not the fancy, glossy kind you see in adverts. I mean the real struggle of finding a decent, affordable place to live in a city bursting at the seams.
What’s really going on?
Lagos is booming. With over 20 million people, it’s one of the fastest-growing megacities in the world. But here’s the catch: the city has a housing deficit of about 17 million units, yes, 17 million! That’s a whole lot of people, and that’s according to the Lagos State Ministry of Housing.
Now, one might think, “Just build more houses.” Sounds simple, doesn’t it? But as you must know by now, like most things in this country, it’s really not that straightforward.
The crazy numbers
Rent prices in Lagos are through the roof. A one-bedroom apartment in a regular, non-plush area can set you back between ₦800,000 and ₦3 million a year (roughly $2,000 to $7,500). In posh areas like Ikoyi or Victoria Island, rents can exceed ₦5 million per month, that’s more than a large majority of Lagosians make in a whole year.
And if you think paying in Naira is bad enough, many developers demand payment in U.S. dollars. Last year, a popular TikToker, Scott Iguma, gained some notoriety for addressing this issue and even got slammed with a lawsuit for calling a Nigerian company out.
Despite Nigerian laws and agencies like the EFCC (Economic and Financial Crimes Commission) trying to stop this, it still happens, making housing even more out of reach for the average person.
Why the dollar pricing?
Developers say they fear the Naira’s instability and inflation, so they want dollars to protect their investments. But this just pushes housing further out of reach for most Lagosians. Imagine needing dollars just to pay rent or buy a home when you earn and spend in Naira. It’s exhausting and unfair.
What’s driving these insane prices?
- Lagos’s population is growing faster than new homes can be built. With an annual growth rate of about 3.2%, Lagos adds roughly 500,000 people every year, per the National Population Commission. That’s half a million people needing homes annually.
- Our land laws are complicated and slow. Getting land cleared and approved for housing development can take years, adding costs and delays.
- Developers prefer building luxury estates where they can make big profits, leaving few affordable options for ordinary people.
- Many properties are held as investments and left vacant, which tightens supply and drives prices up.
- Poor infrastructure, bad roads, inconsistent power, and unreliable transport pushes people to cluster in specific, expensive neighborhoods.
One more to add as well – people actually buy these places. As someone who currently works in Real Estate, I’ll be the first to tell you that if there wasn’t a market for it, more and more developers wouldn’t continue to build and set these arbitrary prices. And yet they continue. Truth is, it has to be profitable.
And what about the people?
A significant number of Lagosians live in informal settlements. Think Makoko, one of the largest floating slums in Africa. These areas often lack clean water, proper sanitation, or security.
When governments try to “clean up” the city, these communities get pushed out without alternatives, deepening social problems.
The middle class isn’t spared either. Studies show many Lagosians spend 40-50% of their monthly income on rent, per a 2022 Central Bank of Nigeria (CBN) survey, money that could be spent on food, education, or healthcare.
This housing crisis is a mirror reflecting Lagos’s growing social divide. The market is basically split between the ultra-rich, who can afford luxury estates charging millions, and the poor, who struggle in overcrowded slums. The middle class is being squeezed, with fewer and fewer affordable options that fit their budgets and needs.
In other words, the housing market says: you’re either “rich” or “poor.” But Lagos desperately needs more middle-class housing homes that are decent, affordable, and accessible to the hardworking Lagosians who form the backbone of the city’s economy.
The shrinking middle class and the lack of suitable housing for them isn’t just an economic issue; it’s a social time bomb, fueling tension and inequality.
An actionable P.L.A.N
Now that we know what issues are, naturally the question one would ask would be, “so what do we do now?”
That’s a good question, and I have some ideas.
I’ve structured these ideas into an actionable project plan, which I have assigned the acronym “P.L.A.N”.
This is short for;
P – Policy Reform
L – Land Access & Management
A – Affordable Housing Incentives
N – Neighborhood Infrastructural Upgrade
1. POLICY REFORM
Current Challenges:
- Complex, overlapping land and housing regulations slow approvals.
- Corruption and lack of transparency increase costs and delays.
- Fragmented responsibilities across multiple agencies cause inefficiency.
Action Steps:
- Create a unified legal framework that simplifies land and housing policies.
- Establish a centralized digital platform for all housing-related approvals.
- Set up an independent anti-corruption task force targeting land and housing sectors.
- Regularly review and update policies with stakeholder input.
Expected Outcomes:
- Faster, more predictable approval processes.
- Reduced corruption-related costs and delays.
- Improved coordination between agencies, increasing efficiency.
Case Study: Vienna Austria
2. LAND ACCESS MANAGEMENT
Current Challenges:
- Lengthy, costly land acquisition processes discourage development.
- Lack of accurate, digital land records leads to disputes.
- Limited availability of land designated for affordable housing.
Action Steps:
- Digitize and geospatially map all land registries.
- Establish government-owned land banks earmarked for affordable housing projects.
- Simplify land transfer and lease processes.
- Secure land tenure for informal settlement residents.
Expected Outcomes:
- Quicker, transparent land acquisition.
- Increased land availability for affordable housing.
- Reduced land disputes and improved tenure security.
Case Study: Kigali, Rwanda
3. AFFORDABLE HOUSING INCENTIVES
Current Challenges:
- Developers focus on luxury housing due to higher profits.
- High construction and financing costs deter affordable projects.
- Lack of clear incentives reduces private sector participation.
Action Steps:
- Introduce tax incentives and VAT exemptions for affordable housing developers.
- Provide subsidized long-term financing options and loan guarantees.
- Fast-track permit approvals and reduce fees for affordable housing.
- Promote public-private partnerships with risk-sharing arrangements.
Expected Outcomes:
- Increased supply of affordable housing units.
- Greater private sector involvement.
- Lower cost of housing for middle and low-income families.
Case Study: Singapore
4. NEIGHBORHOOD INFRASTRUCTURAL UPGRADE
Current Challenges:
- Poor roads, unreliable electricity, and lack of transport in affordable housing areas.
- Informal settlements lack basic services and legal recognition.
- Limited social infrastructure affects livability.
Action Steps:
- Develop integrated infrastructure plans aligned with housing projects.
- Expand public transport to connect affordable neighborhoods with economic centers.
- Implement decentralized renewable energy solutions.
- Upgrade informal settlements with community participation and secure tenure.
- Build schools, clinics, markets, and recreational facilities in new neighborhoods.
Expected Outcomes:
- Improved quality of life and attractiveness of affordable housing areas.
- Enhanced access to jobs and services.
- Empowered communities with safer, healthier living conditions.
Case Study: Curitiba, Brazil
Final thoughts
The Lagos housing crisis isn’t just about buildings. It’s about fairness, opportunity, and the kind of city Lagos wants to become. Without urgent, smart action, decent housing will remain a dream for millions.
This is a crisis that threatens the social fabric of our city, pushing the middle class to the brink and leaving too many without a decent place to call home.
A good number of people I know, mostly Gen Zers and entry-level employees, cannot afford to live in even moderately decent areas of the state. Instead, they’re forced to retain campus-like accommodation even after graduation, live with their parents for extended periods, or “squat” with someone who lives fairly close to their offices.
We cannot afford complacency or half-measures. The time for bold, inclusive, and urgent action is now. Policymakers, developers, community leaders, and everyday Lagosians must come together to demand transparent reforms, equitable housing policies, and sustained investments that prioritize affordability and accessibility.
If we truly want Lagos to be a city of opportunity and dignity, housing must be at the forefront of our collective agenda. Let’s move beyond promises and take decisive steps, because decent housing is not a privilege, it is a fundamental right.
Private and Public stakeholders have a great commitment to make in this regard, and even as much as we love to see the great architecture and serenity of their more highbrow projects in Banana Island and Eko Atlantic, the people who buy these homes are statistically less than 1% of our entire population. We need affordable housing for the 99%
I strongly believe that this is achievable, and in this article, I have brought up a couple of action points and a strategy which the government can use as a template to develop the housing sector moving forward.
Lagos cannot wait. The millions who dream of a home deserve solutions today.
‘Mide Alabi, a lawyer, writes from Lagos. He can be reached at lifeofmid3@gmail.com
