Lagos and Abuja Rents Are Rising 4x Faster Than Inflation

Nigeria entered 2025 with high inflation, but the rental market in Lagos and Abuja is moving far beyond what the official numbers suggest. While the National Bureau of Statistics reports headline inflation at 24.48 percent (Jan ‘25), collected data from NHM shows rent increases in both cities ranging from significant surges to extreme jumps well above 100 percent.

Across our sample, Lagos recorded an average rent increase of over 105 percent, while Abuja averaged more than 81 percent. These figures place rent inflation at roughly three to four times the CPI, creating a widening gap between economic reality and the lived experience of urban renters.

This report introduces the concept of Landlord Inflation. Monetary inflation explains part of the rise in rents, but the rest is driven by landlord behavior, expectations and opportunistic pricing practices. The combination of tenant level data and official statistics shows that this gap has become a defining feature of renting in both Lagos and Abuja, reshaping affordability and intensifying pressure on households.

Eko Atlantic has emerged as the leading hub for Lagos’ luxury residential market, achieving a 59.5% sales growth over the past five years, according to data from Estate Intel. The performance reflects sustained demand for ultra-prime properties, limited supply, and the district’s sophisticated infrastructure and investment-friendly environment.

Analysis of Lagos’ high-end property market indicates that Eko Atlantic, Ikoyi, and Banana Island are the top-performing districts in the luxury segment. Ikoyi recorded 58.14% growth, while Banana Island followed with 55.30%. Victoria Island and Oniru posted gains of 45.04% and 38.32%, respectively. The data illustrate the widening gap between ultra-prime, master-planned districts and areas with a more mixed housing stock, with scarcity, security, and lifestyle amenities driving price appreciation.

Governments in Nigeria’s major cities, notably Lagos, are intensifying efforts to develop planned urban communities to alleviate congestion, expand housing options, and promote economic development. These projects, including Gracefield Island, Orange Island, and Periwinkle Estate, integrate residential, commercial, industrial, transport, and leisure infrastructure to create sustainable urban hubs.

Experts at the 4th UPDC Real Estate Summit in Lagos highlighted the critical role of new towns in addressing Nigeria’s estimated 28 million housing deficit. Franklin Nnaemeka Ngwu, Professor of Strategy and Governance at Lagos Business School, emphasised that real estate now constitutes the third-largest contributor to Nigeria’s GDP, accounting for 12.8% in Q2 2025, following crop production and trade.

The naira appreciated in Nigeria’s parallel foreign exchange market on Monday, strengthening to ₦1,470 per US dollar, while official market rates reflected minor depreciation. Data from the Central Bank of Nigeria (CBN) show continued alignment between the parallel market and the Nigerian Foreign Exchange Market (NFEM), driven by improved liquidity conditions.

In the parallel market, the naira rose from ₦1,476 per dollar recorded over the weekend, signaling a modest recovery. Conversely, at the official NFEM window, the currency weakened slightly to ₦1,450 per dollar from ₦1,446.9 per dollar, representing a depreciation of ₦3.1.

Why It Matters: A stronger and more stable naira reduces the cost of imported building materials, improves developer planning and supports better pricing clarity for buyers and renters. The narrowing gap between the official and parallel markets also boosts investor confidence, which is essential for financing large real estate projects and mortgage activity. For tenants and landlords, FX stability often translates into slower price volatility in construction, finishing materials and premium housing segments. In short, a more coherent FX market improves visibility across the entire real estate value chain.

1. Lagos Temporarily Suspends Admiralty Way–Ajah Rehabilitation to Ease Yuletide Traffic Pressures

The Lagos State Government will suspend rehabilitation works along the Eti-Osa/Lekki/Epe Expressway from the Admiralty Way junction to the Ajah Jubilee Bridge effective Thursday, December four, to reduce congestion and ensure smoother mobility during the peak holiday travel season. The suspension will last until mid-January 2026, when contractors will return to commence the project’s second phase.

The decision follows a joint assessment by senior officials from the Ministry of Transportation, the Office of Infrastructure, the Lagos State Traffic Management Authority (LASTMA), and the project’s contractor, CRCC.

HAVE A GREAT DAY 😃

_{^{Produced by: Amarachi Okeke}}