Lagos Rent Crisis: Deputy Gov Gives Young Workers Tips to Pay Less for Housing
- Lagos Deputy Governor advises young workers to choose affordable accommodation aligned with their income
- Hamzat recommends spending no more than 40% of income on rent to avoid financial strain
- Government aims to improve housing access through mortgage financing and economic stability for residents
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Lagos State Deputy Governor Obafemi Hamzat has advised young workers struggling with rising rents to avoid the pressure of immediately renting expensive apartments, urging them to choose accommodation that matches their income.
Hamzat advised during a question-and-answer session with Nigeria Info FM on Thursday, August 20, 2026, while responding to concerns about how a 22-year-old earning N100,000 monthly could afford a self-contained apartment or mini-flat costing about N1 million annually.
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According to him, young people should consider living with their parents, relatives or in shared accommodation while building their careers and finances.
He said there was no need for young workers to feel compelled to start with a self-contained apartment if their earnings could not comfortably support it.
The deputy governor stressed that accommodation choices should reflect an individual’s financial capacity rather than social pressure.
Don’t spend more than 40% of income on rent
Hamzat also warned Lagos residents against committing too much of their earnings to housing, saying rent should ideally not consume more than 40 per cent of income.
“If you spend more than 40 per cent of your income on rent, it is too high,” he said, noting that residents still need money for food, clothing, transportation and other essential expenses.
His comments come as housing costs remain a major financial burden for many workers in Lagos, particularly young people entering the workforce on relatively low salaries.
The deputy governor suggested that starting small could help residents manage their finances while gradually improving their standard of living as their income increases.
Lagos pushes mortgage-based home ownership
Beyond renting, Hamzat said Lagos was working to expand access to home ownership through mortgage financing.
He argued that Nigerians could not continue relying on one-off payments to purchase properties because many households would struggle to raise millions of naira at once.
He pointed to the Lagos State mortgage system as part of the solution, explaining that residents could make an initial payment and spread the balance over several years, according to a report in Punch.
Using a N7 million property as an example, Hamzat said a buyer could pay 10 per cent, or N700,000, upfront and repay the balance over 10 years, depending on their income and repayment capacity.
He said some buyers could make monthly payments of about N25,000 or N35,000, depending on their financial circumstances.
LASRRA number key to housing assessment
Hamzat also explained that the Lagos State Residents Registration Agency, or LASRRA, registration system could help the government establish residents’ identity, address and employment details when assessing their eligibility for housing finance.
He said the ability to demonstrate consistent savings and repayment capacity would be important in determining whether an individual could access property financing.
Lagos has previously promoted mortgage-backed housing initiatives, including LagosHOMS, which allows eligible subscribers to spread payments over several years through rent-to-own arrangements.
Better incomes still needed
Despite the proposed housing solutions, Hamzat acknowledged that affordability ultimately depends on the wider economy.
He said the government must create an environment where residents earn better incomes and can cope with the cost of living.
According to him, controlling the rising cost of goods and improving economic stability would make it easier for households to plan their finances, save and eventually transition from renting to owning homes.
Top 6 neighbourhoods still offering budget-friendly homes
Legit.ng earlier reported that finding an affordable home in Lagos has become increasingly difficult as rents continue to rise across many parts of the metropolis.
However, tenants willing to live farther from the city’s major commercial centres can still find comparatively cheaper accommodation.
The most budget-friendly locations are largely concentrated around the outer Mainland and satellite communities, where lower land values and greater distance from central business districts help keep rents below those in areas such as Lekki, Ikoyi, Victoria Island and Ikeja.
Source: Legit.ng
