Lagos State Deputy Governor, Obafemi Hamzat, has advised young people, particularly those at the early stages of their careers, to make housing decisions based on their income and financial capacity rather than rushing to secure independent accommodation.

Hamzat gave the advice on Thursday during a question-and-answer session on Nigeria Info FM, while responding to concerns over how a 22-year-old earning ₦100,000 monthly could afford a self-contained apartment or mini-flat costing about ₦1 million in annual rent.

The deputy governor said young Nigerians should not feel pressured to move out and rent their own accommodation immediately after getting a job if their earnings cannot comfortably support the cost.

He explained that living with parents, relatives or other family members was consistent with traditional living arrangements in Nigeria and could provide young workers with an opportunity to establish themselves financially before taking on higher housing expenses.

“Don’t let us misunderstand ourselves as a people. We are cultural people. Do you understand? So, if I start work as a young person and I’m not married, a lot of us live with our parents. A lot of us live with our cousins,” Hamzat said.

He also referenced living arrangements in countries such as Turkey, where young people may remain with family members or share accommodation while building their financial independence.

According to him, there is nothing wrong with starting with modest accommodation and upgrading as income increases.

“So, if you don’t start from the top self-contained, you don’t start from the top. You start from the average depending on,” he said.

Hamzat Sets 40% Rent Benchmark

Hamzat also advised workers against committing an excessive share of their earnings to accommodation.

He said spending more than 40 per cent of one’s income on rent was too high because workers still needed to cover food, clothing, transportation and other essential expenses.

“In fact, if you spend more than 40 per cent of your income on rent, it is too high because you must eat, you must buy clothes, you must do transportation,” the deputy governor said.

He encouraged young people to consider affordable housing options while developing a culture of saving and gradually improving their housing situation as their financial capacity grows.

Lagos Promotes Mortgage Financing

Beyond the issue of rental affordability, Hamzat said the Lagos State Government was promoting mortgage financing as an alternative route to homeownership.

He explained that purchasing a property through a single upfront payment was beyond the reach of many Nigerians, making mortgage financing necessary for expanding access to homeownership.

According to him, the Lagos State mortgage board was established to provide financing options to residents who can demonstrate their ability to repay.

“But, you know, the challenge is we cannot continue to buy houses the way we buy rice and yam. Do you understand? So, we must buy properties using a mortgage, and that’s why we have a mortgage board in Lagos,” Hamzat said.

LASRRA Identification to Support Mortgage Assessment

Hamzat also explained how the Lagos State Residents Registration Agency (LASRRA) identification system could support the mortgage process.

He said the system could help establish a resident’s identity, address and place of employment, information that could assist lenders in assessing an applicant’s ability to repay a housing loan.

“So, that’s why we said people must have LASRRA number, so we can know that, okay, you live in Lagos. This is where you live. This is your address. This is where you work. So that there is a credit bill that checks everything that says, okay, you can pay,” he said.

₦7m Property Example

Using a ₦7 million property in Bisedi as an example, Hamzat explained how mortgage financing could allow a prospective homeowner to spread the cost of the property over several years.

He said a buyer could make an initial payment of 10 per cent, equivalent to ₦700,000, and repay the outstanding balance over a 10-year period.

“So, if a flat in Bisedi, which is seven million naira, you pay 10 per cent with 700,000, and over 10 years, you are able to pay monthly,” he said.

Hamzat added that the monthly repayment would depend on the buyer’s income and ability to repay.

“Some people pay 25,000 monthly or 35,000, whatever it is, depending on your income,” he said.

According to him, mortgage financing provides residents with an alternative to paying the full purchase price at once, which many prospective homeowners may not be able to afford.

“That is the way to go because we know that a lot of people will not be able to afford to pay a one-shot deal,” he said.

Hamzat Urges Young People to Start Small

The deputy governor encouraged young Nigerians to begin with housing they can afford while developing a consistent savings culture and working towards eventual property ownership.

He said young workers should not feel that they must immediately secure expensive accommodation when they are just starting their careers.

“But the bottom line is, like I said, the culture of ability to save, so that if people see that you can save money, then I can give you a property.

“It doesn’t have to be, if you are a young person, you can start with one bedroom or even a self-contained, like you explained,” he said.

Housing Affordability Linked to Income

Hamzat acknowledged that housing affordability cannot be separated from the wider economic environment.

He stressed the need to improve residents’ earning capacity so that more Nigerians can afford decent accommodation and eventually own homes.

“What is important is we must also build our economy in such a way that people earn better, you understand, so that everybody can be uplifted, and that is the bottom line,” he said.

He added that reducing the cost of goods and services would also help residents manage their incomes and make more sustainable housing decisions.

“The cost of buying things is what we need to fix first, and then when we fix that, which is what the Federal Government is doing now, then we’ll be able to talk a lot more about other pillars that stop on top of that,” Hamzat said.

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