Housing expert Odunayo Ojo identifies structural barriers behind Nigeria’s worsening rent crisis and supply deficit

Odunayo Ojo, managing director and CEO of UPDC Plc, has identified systemic challenges fueling Nigeria's deepening housing deficit and soaring urban rents. Speaking on a BusinessDay Television programme monitored in Lagos, Ojo attributed the crisis to a widening gap between housing demand and supply, driven by population growth and rural-urban migration. He noted that construction costs have surged due to reliance on imported materials and currency devaluation, making mass housing delivery unfeasible for developers. Regulatory hurdles, particularly around foreclosure laws, and limited land access further constrain supply. Ojo stressed that without strong public-private partnerships to enable long-term financing and land release, the market will remain unable to meet demand.

Urban rental prices have risen sharply over the past 24 months, especially in Lagos and Abuja, Ojo said, explaining that the rental market operates on basic demand-supply dynamics. With limited housing stock and rising costs, landlords are increasing rents to maintain investment returns, a move he described as economically rational despite its social impact. "If you do not increase the rate of your rent commensurate to the increase in the value of your property, then your rate of return will drop," he stated. He dismissed speculation that estate agents or aggressive landlordism are the primary drivers, urging focus instead on structural imbalances. Ojo emphasized that real estate remains an investment for many owners, and maintaining returns in a high-cost environment necessitates rent adjustments.

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