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Hamzat warns workers against spending over 40% of income on rent

Lagos State Deputy Governor Obafemi Hamzat has advised workers not to spend more than 40 per cent of their income on rent, warning that excessive housing costs could leave households struggling to meet other basic needs.

Hamzat gave the advice during a question-and-answer session with Nigeria Info FM on Thursday, August 20, 2026, while responding to concerns about the rising cost of housing in Lagos and the difficulty faced by young workers on modest incomes.

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 in rent.

In response, Hamzat said young workers should make housing decisions based on their income rather than social pressure or the expectation that they must immediately move into independent accommodation after securing employment.

He suggested that unmarried young workers who cannot comfortably afford rent could consider living with their parents, relatives or cousins, or share accommodation with others while building their careers and finances.

“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. (Punch Newspapers)

Hamzat said there was no need for young workers to “start from the top” by renting expensive self-contained apartments when their earnings could not comfortably support such accommodation.

He encouraged residents to start with housing they can afford and improve their living arrangements as their income and savings increase.

The deputy governor also stressed the need for workers to balance rent payments with other essential expenses, including food, clothing and transportation.

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“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. (TheNiche)

For a worker earning N100,000 monthly, an annual rent of N1 million would amount to more than 80 per cent of annual income, leaving only about N200,000 before other expenses such as food, transport, utilities and clothing are considered.

Hamzat’s comments come as rising rents in Lagos continue to put pressure on workers, particularly young people and households whose earnings have not kept pace with accommodation and other living costs.

Beyond renting, Hamzat advocated mortgage financing as a more sustainable route to home ownership, arguing that Nigerians should not be expected to pay the full cost of a property at once.

“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,” he said.

He explained that mortgage financing could allow residents to make an initial payment and spread the remaining cost over several years, making home ownership more achievable for people who cannot afford a one-off payment.

Using a N7 million property as an example, Hamzat said a prospective buyer could pay a 10 per cent initial deposit of N700,000 and spread the remaining balance over 10 years.

He said monthly repayments could vary depending on the buyer’s income and repayment capacity, with some residents paying around N25,000 or N35,000 monthly.

“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,” Hamzat said. (The Sun Nigeria)

Hamzat also highlighted the role of the Lagos State Residents Registration Agency (LASRRA) in the housing process, saying residents’ registration information could help establish their identity, address and place of work when assessing their ability to access housing finance.

He said the system could support a process in which an applicant’s financial capacity and ability to repay a mortgage are assessed before financing is approved.

The deputy governor further urged young workers to develop a savings culture and consider smaller properties as an entry point to home ownership, rather than waiting until they can afford more expensive houses.

According to Hamzat, the housing challenge cannot be addressed through personal financial choices alone. He said broader economic conditions, particularly workers’ incomes and the cost of essential goods and services, also need to improve.

“What is important is we must also build our economy in such a way that people earn better,” he said.

Hamzat said greater economic stability would make it easier for households to plan their finances, manage housing costs and work towards owning property.

He also linked the housing challenge to the wider cost-of-living situation, arguing that reducing the pressure created by the rising cost of goods and services would help residents cope with other financial obligations.

“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,” he said. (The Whistler Newspaper)

Hamzat’s position therefore combines a call for affordable housing choices, greater use of mortgage financing and improved household savings with a broader appeal for stronger incomes and economic stability.

For young workers in Lagos, his central message was that accommodation should reflect what they can realistically afford, rather than consume a disproportionate share of their earnings.

Hamzat warns workers against spending over 40% of income on rent