The clarification came from Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, who emphasized that VAT is already exempted on land, buildings, and rent under the existing Nigeria Tax Act. The statement followed media reports alleging that the new tax framework imposed a 25 percent levy on building materials.
Despite these reassurances, real estate experts argue that the primary drivers of high rent are elsewhere. Rapidly increasing prices of building materials—particularly cement—and weak regulatory oversight are key factors pushing rents beyond the reach of most Nigerians.
In Abuja, Lagos, Kano, Enugu, and Port Harcourt, annual rent for a one-bedroom apartment has more than doubled in recent years. In areas like Dawaki, Jabi, Jahi, Kubwa, Dutse, and Nyanya in Abuja, rents have surged from N500,000–N1 million to between N1.5 million and N2 million, far exceeding the yearly earnings of workers on Nigeria’s N70,000 minimum wage.
Speaking exclusively, Aliyu Wamakko, former President of the Real Estate Developers Association of Nigeria, said cement prices are the real bottleneck. “The primary material for building is cement, now priced at over N10,700 per 50kg bag, even at factory rates,” Wamakko noted. He added that Nigeria’s 14.9 million housing deficit will remain unaddressed if material costs are not reduced.
Hakeem Suleiman, President of the Association of Abuja Tenants, attributed high rents to weak regulatory enforcement and lack of accessible mortgage systems. “House rents are soaring because there is no control mechanism and inadequate mortgage options for ordinary Nigerians. Agencies, lawyers, or caretakers arbitrarily increase rents without considering tenants’ economic realities,” he said.
Although Nigeria’s inflation fell to 15.10 percent in January 2026, according to the National Bureau of Statistics, the high cost of living continues to strain households nationwide.
