Lagos State Deputy Governor, Obafemi Hamzat, has advised young workers struggling with rising rents in the state to consider living with their parents, relatives or sharing accommodation rather than rushing to rent expensive apartments.
Hamzat gave the advice during a question-and-answer session on Nigeria Info FM on Thursday while responding to concerns about how young workers earning low incomes could cope with the high cost of housing in Lagos.
The deputy governor was asked how a 22-year-old earning N100,000 monthly could afford a self-contained apartment or mini-flat reportedly costing about N1 million annually.
Responding, Hamzat said young people should choose accommodation that reflects their income and financial circumstances instead of feeling pressured to immediately secure their own apartments.
“Don’t let us misunderstand ourselves as a people. We are cultural people,” Hamzat said, noting that many young Nigerians traditionally live with their parents or relatives before becoming financially independent.
He added that young workers could also consider shared accommodation as a way of reducing their housing expenses.
According to him, there was no need for young people to “start from the top” by renting self-contained apartments when their incomes could not comfortably support such arrangements.
“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 also advised residents to avoid spending an excessive proportion of their income on rent, saying rent should not account for more than 40 per cent of a worker’s earnings.
“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,” he said.
The deputy governor said the state was also promoting mortgage financing as a way of making home ownership more accessible to residents.
He explained that rather than paying the full cost of a property at once, residents could make an initial payment and spread the balance over several years, depending on their income and repayment capacity.
Hamzat cited a property costing N7 million as an example, saying a buyer could pay N700,000, representing 10 per cent, and spread the remaining amount over 10 years.
“Some people pay 25,000 monthly or 35,000, whatever it is, depending on your income,” he said.
He said the Lagos State Residents Registration Agency, LASRRA, registration system was also useful in identifying residents, their addresses and places of work as part of efforts to assess their eligibility for housing finance.
Hamzat stressed that the culture of saving was important because financial institutions would need evidence that prospective homeowners could meet their repayment obligations.
He said young people could start with smaller properties and gradually move towards home ownership as their incomes and savings improved.
The deputy governor, however, acknowledged that the housing crisis could not be addressed without improving the broader economy and ensuring that workers earn better incomes.
“What is important is we must also build our economy in such a way that people earn better,” he said.
He added that addressing the rising cost of goods and services would also help residents plan their finances and cope better with housing expenses.
Lagos State has previously promoted mortgage-based housing initiatives, including LagosHOMS, through which residents can acquire homes under rent-to-own arrangements and spread payments over several years.
