Governor Babajide Sanwo-Olu of Lagos State has called for stronger collaboration with credible financial institutions, including the Lagos Building Investment Company (LBIC), to expand access to sustainable housing finance and address the state’s growing housing needs.

The governor made the appeal at the 21st Annual General Meeting (AGM) of LBIC held in Ikeja, Lagos, where he reiterated that government alone cannot resolve the housing deficit.

Represented by the Commissioner for Housing, Moruf Akinderu-Fatai, Sanwo-Olu reaffirmed the state government’s commitment to improving affordable housing finance systems across Lagos.

He described housing as a critical economic driver that supports job creation, stimulates small businesses, and strengthens overall economic stability in the state.

Housing Beyond Shelter, Says Sanwo-Olu

The governor commended LBIC’s board, management, and shareholders for sustaining the institution’s mandate of promoting mortgage access and inclusive housing development.

He noted that despite prevailing economic challenges and shifting market conditions, LBIC has continued to demonstrate resilience in supporting Lagos residents through mortgage financing.

“Housing is not just a social need; it is an economic driver that creates jobs and supports small businesses across the value chain,” he said.

Call For Digital Expansion And Innovation

Sanwo-Olu urged LBIC to embrace technology-driven solutions and innovative financial products to expand access to underserved segments of the housing market.

He stated that digital transformation and retail lending expansion should remain central to LBIC’s 2026 priorities, particularly in reaching low- and middle-income earners.

According to him, modern housing finance systems must leverage technology to improve efficiency, accessibility, and affordability.

LBIC’s Role In Lagos Housing Development

The Lagos Building Investment Company, a primary mortgage institution in the state, was originally established to provide mortgage facilities for low-cost housing schemes.

Over the years, it has evolved into a key player in Lagos’ housing finance ecosystem, supporting homeownership and real estate development through structured mortgage products.

The governor expressed confidence that outcomes from the AGM would strengthen LBIC’s capacity to deliver greater impact in the housing sector.

Outlook

Stakeholders say strengthening housing finance partnerships remains critical as Lagos continues to face rising housing demand driven by rapid population growth and urbanisation.

With government backing and increased private sector collaboration, institutions like LBIC are expected to play a central role in expanding access to affordable mortgages and improving housing delivery across the state.

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Residential rents in Lagos continued to climb in the second half of 2025 despite a moderation in Nigeria’s headline inflation, according to a new property market report released by Knight Frank.

The report, presented during the H2 2025 Lagos Market Update, highlights a persistent increase in rental prices across several parts of the state, driven largely by strong demand and a limited supply of formal residential housing.

Analysts say the situation reflects structural challenges in Lagos’ housing market, where demand for accommodation continues to outpace available supply.

Strong demand keeps rental prices high

According to the report, residential rents recorded noticeable increases in several locations when compared with the second half of 2024.

Knight Frank noted that the continued growth in rental prices reflects resilient demand within the Lagos housing market.

Even as inflation slowed during the period under review, the shortage of formal housing units remained a major factor sustaining upward pressure on rents.

The report explained that Lagos’ housing market is characterised by structurally constrained supply, meaning the number of available residential properties remains insufficient to meet growing urban demand.

As a result, affordability pressures have continued to rise for many residents seeking accommodation in the city.

Housing supply remains limited

The property consultancy firm pointed out that the limited availability of formal residential stock is a key factor shaping pricing dynamics in Lagos.

With the population of the state continuing to grow rapidly, the demand for housing has expanded significantly, while supply growth has remained relatively slow.

Experts say this imbalance between demand and supply has made Lagos one of the most expensive rental markets in Nigeria.

Government housing interventions

In response to the growing housing deficit, both federal and state authorities have introduced various initiatives aimed at increasing housing supply and improving access to home financing.

Knight Frank noted that public-private partnerships between developers and the Lagos State Government helped deliver approximately 653 residential units during the review period.

The report added that additional housing projects are currently within the development pipeline and are expected to increase the availability of residential units in the coming years.

Housing finance reforms and government programmes are also expected to play a role in improving access to homes.

Mortgage initiatives introduced

On the financing front, the Federal Government recently launched the Ministry of Finance Incorporated Real Estate Investment Fund, designed to provide long-term housing loans to Nigerians.

The programme offers mortgage financing at an interest rate of about 9.75 percent, making it one of the more affordable mortgage options currently available in the market.

In addition, the Federal Government’s Renewed Hope Housing Programme is also underway, with around 2,000 housing units nearing completion in Ibeju-Lekki.

These initiatives are part of broader efforts to reduce the country’s housing shortage and improve access to affordable homes.

Shift in rental demand patterns

Looking ahead to 2026, Knight Frank predicts that demand will increasingly focus on functional living spaces.

Studio apartments and one-bedroom units in mid-market areas such as Yaba and Surulere are expected to experience the fastest absorption rates due to their relatively lower rental costs.

These locations remain attractive to young professionals and middle-income earners seeking more affordable accommodation options within the city.

Infrastructure development to influence supply

The report also suggested that future housing supply may follow major infrastructure developments.

Projects such as the Lagos-Calabar Coastal Highway and development along the Epe corridor are expected to transform previously peripheral areas into attractive residential zones.

Improved connectivity from new infrastructure could increase the value of land and encourage more housing development in those areas.

More transparency expected in rental market

While rental growth is expected to continue, the report indicated that the Lagos property market may become more transparent in the coming years.

The introduction of the Nigerian Tax Act 2025 is expected to encourage landlords and tenants to formalise rental agreements in order to benefit from tax relief provisions.

This development could help improve documentation and transparency in the rental market.

Knight Frank concluded that although inflationary pressures may fluctuate, the fundamental supply gap in Lagos housing will continue to shape rental trends unless large-scale housing development significantly increases the number of available homes.

The post Lagos Rents Rise as Housing Supply Tightens – Knight Frank Report appeared first on Housing TV Africa.

Stakeholders in Nigeria’s real estate sector have condemned the demolition of about 50 buildings in a Lagos community by suspected land grabbers popularly known as Omo Onile.

The incident occurred in the Surulere community of Amikanle, near the Command area in Alimosho Local Government Area of Lagos State, leaving several homeowners counting heavy losses.

Residents said the suspected thugs invaded the area on January 27, 2026, demanding payments ranging from N15 million to N25 million from property owners.

According to eyewitness accounts, houses belonging to residents who failed to meet the demands were subsequently demolished.

Real estate stakeholders react

Founder and Chief Executive Officer of Oikus, Israel Ihaza, condemned the action and called for greater transparency, structure and proper documentation in the real estate sector.

He described the incident as disturbing and harmful to the credibility of the property market in Lagos.

“It’s sad how some individuals continue to bastardise government authority and existing regulatory structures to carry out illegal activities. Incidents like this are deeply troubling for everyone who believes in the rule of law and the future of real estate in Lagos,” Ihaza said.

He explained that unclear ownership records, weak enforcement and fragmented property visibility often create opportunities for such abuses.

Calls for stronger regulation

Ihaza noted that the government is working toward strengthening systems within the sector through digital oversight and regulatory enforcement.

He added that efforts are ongoing to professionalise the real estate sector, digitise land records and improve accountability across the property value chain.

According to him, the persistent activities of Omo Onile have remained a structural challenge within the Lagos property market for years.

He stressed that the demolition of residential buildings has severe consequences beyond the physical structures.

“When a house is demolished, the loss goes far beyond bricks and mortar. It involves life savings, retirement plans, children’s education and family stability,” he said.

Legal concerns and financial losses

Also speaking, legal counsel to the Project Affected Persons within the 150-metre setback of the Lagos-Calabar Coastal Highway, Sola Enitan, said demolition has increasingly become a method of extortion in parts of Nigeria, particularly in Lagos.

He urged affected homeowners to pursue legal action and defend their property rights.

Enitan estimated that the financial impact of such demolitions has been enormous.

According to him, at least 52 demolished buildings valued at about N50 million each would amount to roughly N2.6 billion in losses.

He warned that such incidents could discourage investors and developers from committing funds to housing projects.

Real estate analysts say the continued activities of land grabbers pose a serious threat to housing development and investor confidence in Lagos State.

The post Suspected Omo Onile Demolish 50 Buildings in Lagos, Stakeholders Raise Alarm appeared first on Housing TV Africa.

Lagos State has moved to reassure investors and developers by promising faster building approvals, with permits to be issued within 10 working days once all requirements are fulfilled

Commissioner for Physical Planning and Urban Development, Dr. Oluyinka Olumide, gave the assurance on Wednesday during a briefing on the “State of the Environment” in Lagos.

According to Olumide, applicants are required to submit architectural and structural drawings, technical and engineering reports, and soil test results where necessary. Proof of tax compliance is also mandatory.

“Once all documents are submitted and the required fees are paid, approvals will be issued within 10 working days,” he said, adding that trained officers are available to guide applicants through the process.

The commissioner encouraged journalists to independently verify the streamlined approval timeline, underscoring the government’s commitment to efficiency and transparency.

Turning to the issue of unapproved housing developments, Olumide disclosed that 176 estates remain under sanction for failing to comply with planning regulations. He noted that many of the affected estates were built on land designated for agricultural or industrial use without securing proper approvals.

A 21-working-day grace period was issued for regularisation, he said, adding that while some developers have begun corrective action, others risk enforcement measures, including property sealing.

“These regulations are designed to protect residents, ensuring that estates are properly planned, safe, and conducive for living,” Olumide stressed.

Source: The Guardian

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