‘Extortion’

Part of the problem is Nigeria’s population growth combined with rapid urbanisation: in over a decade, the urban population has grown by 50%. Nationally, the population is expected to almost double by 2050, adding nearly 200 million more residents.

Lagos, which attained mega-city status in 2010, is already bursting at the seams. Flooding has driven people out of vulnerable coastal neighbourhoods, meaning prices have soared in other in-demand districts. More houses are being constructed, but investors are fixated on building luxury homes affordable to few.

Needless to say, rental struggles have sparked conversations among young people about how to fix the problem. Many properties available for rent are flats that don’t work for singletons, who are looking for smaller spaces. And in general, people are frustrated by what they see as excessive fees that estate agents charge.

“I think the agent system is extortion,” says Abiola Abajo, a 29-year-old project manager who rents in Lagos. “I see no reason why there cannot be an e-commerce platform where landlords can meet their potential tenants.”

Gender inequality has also been an issue for her: many landlords don’t want to rent to single women because of entrenched conservatism. And she says the absence of caps on rent has helped landlords and agents to get away with sudden price rises. “The agents have moved the [fee for monthly] commission and [contract] agreement from 10% to 20%, meaning that an apartment of $1,400 [for a year] is now $2,000.”

Estate agent Sunday Aina, 41, says landlords won’t consider monthly rental because many have enormous loan commitments which they need to pay off fast. Many are also capitalising on the high level of demand for housing, he says. He believes government-regulated rent caps – standardised pricing for different parts of the city – would help solve the problem. He also acknowledges that estate agency charges “are too much”, and that service fees should be lowered. He thinks 5% of the rent would be a good level, as opposed to the current standard of 10%.

Better transport, more sharing

The government is hoping that transport upgrades that will allow workers to live further from the city centre will help ease the rental crunch. Project engineers are under pressure to meet a deadline to build rail tracks for the federal train service that will link three states in southwest Nigeria, including Lagos. When built, the hope is that more young workers will live in remote areas.

Waterways have attracted private investors, too. Uber, for example, has carried out pilot trials of a boat service aimed at commuters in partnership with the state government that seeks to connect residents and businesses faster to their destinations.

Wasiu Akewusola, permanent secretary of the housing department, has also suggested employers can lighten the load by remitting housing allowances to their staff annually instead of as a monthly payment, to help them cope with upfront expenses. It’s not clear how realistic this is. Companies are not likely to explore this idea because it is only possible when they are sure that their staff will remain for the whole year.