Lagos deputy governor: Spend no more than 40% of income on rent

Lagos State Deputy Governor Obafemi Hamzat has told young workers struggling with rent to choose accommodation that matches their income, not social pressure. He spoke during a question-and-answer session on Nigeria Info FM on Thursday, August 20, 2026.

Responding to a concern about how a 22-year-old earning N100,000 monthly could afford a self-contained apartment or mini-flat costing about N1 million annually, Hamzat said young people should consider living with parents, relatives, or in shared accommodation while building their finances.

Keep rent below 40% of income

Hamzat warned Lagos residents against committing too much of their earnings to housing. He said 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, adding that residents still need money for food, clothing, transportation and other essential expenses.

The deputy governor 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. He advised starting small and gradually improving as income increases.

Mortgage financing and the N7 million example

Beyond renting, Hamzat said Lagos was working to expand 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. Residents could make an initial payment and spread the balance over several years, according to a Punch report.

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. Some buyers could pay about N25,000 or N35,000 monthly, depending on income and repayment capacity.

He added that the Lagos State Residents Registration Agency (LASRRA) could help government verify identity, address and employment details when assessing eligibility for housing finance. Demonstrated savings and repayment capacity would also matter.

Affordability still depends on the economy

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.

Hamzat acknowledged that affordability ultimately depends on the wider economy. He said government must create an environment where residents earn better incomes and cope with the cost of living. Controlling rising prices and improving economic stability would make it easier for households to plan, save and move from renting to owning homes.

For Lagos renters, the message is clear: housing costs should leave room for other necessities. With rents still high in areas such as Lekki, Ikoyi, Victoria Island and Ikeja, many tenants are already looking to outer Mainland and satellite communities, where lower land values keep prices comparatively cheaper.