Connect with us

Business

Lagos Renters Struggle as Soaring Costs Push Housing Out of Reach

The rising prices, driven by poor macro-economic conditions, inflation, high interest and exchange rates, as well as escalating building material costs, have created a daunting situation for renters, pushing the dream of finding suitable housing further out of reach.

Published

on

housing-loans

Lagos, the bustling economic hub of Nigeria, is currently witnessing a daunting challenge in its rental market as soaring costs make housing increasingly unaffordable for many residents.

The rising prices, driven by poor macro-economic conditions, inflation, high interest and exchange rates, as well as escalating building material costs, have created a daunting situation for renters, pushing the dream of finding suitable housing further out of reach.

Landlords in Lagos, particularly those in highly sought-after areas such as Lagos Island, Ikeja, and Victoria Island, are capitalizing on the high demand for rental properties by substantially increasing rents.

This surge in rental prices has left countless tenants grappling with the harsh reality that their hard-earned incomes may no longer suffice to secure a decent home in a desirable location.

According to Moruf Akinderu-Fatai, the state’s commissioner for housing, the rental market in Lagos is exceptionally active, with a staggering 80 percent of its 20 million population residing in rented accommodation.

Among the various types of housing available, 2-bedroom flats are witnessing the highest demand. This surge in popularity can be attributed to a multitude of factors, including the economic challenges that have caused many individuals to lose their jobs or face salary cuts.

Also, young executives and aging individuals seeking downsized living spaces often find 2-bedroom flats to be the ideal choice.

In Lagos, the average rental price for a 2-bedroom flat stands at ₦2 million per annum. However, the rental spectrum is vast, with the most expensive flats commanding a staggering ₦14 million per annum, while the cheapest options are listed at ₦350,000 per annum.

Such exorbitant prices have left prospective renters in a predicament, struggling to find affordable options that meet their needs.

Nevertheless, amidst the bleak rental landscape, there are a few pockets in Lagos that offer some respite for tenants seeking moderately priced housing. Locations such as Ilupeju, Gbagada, and Surulere, which are considered middle-class settlements, present opportunities for tenants to secure 2-bedroom flats with rents ranging from ₦1 million to ₦2 million per annum.

Ilupeju, affectionately known as ‘Indian Village,’ is located on the Lagos mainland within the Mushin Local Government Area. This area attracts tenants not only due to its well-developed road infrastructure but also its accessibility and ease of transportation to other parts of the city. The average rent for a 2-bedroom flat in Ilupeju is approximately ₦1.5 million per annum, with rental prices spanning from ₦1 million to ₦4.9 million per annum, depending on the specific property.

Gbagada, positioned between the Kosofe and Shomolu local governments, is another favored location for renters. Despite the slightly higher prices, Gbagada’s prime positioning and residential ambiance make it an appealing choice. The average rent for a 2-bedroom flat in Gbagada hovers around ₦1.7 million per annum, while the rental range extends from ₦720,000 to ₦2.9 million per annum.

Surulere, a residential and commercial Local Government Area on the Lagos mainland, commands relatively higher rental prices due to its close proximity to Lagos Island, the city’s economic center. The average rent for a 2-bedroom flat in Surulere stands at ₦1.6 million per annum. The rental spectrum in Surulere spans from ₦584,000 per annum for the cheapest flats to ₦3.5 million per annum for the most expensive options.

As the rental crisis in Lagos deepens, prospective tenants find themselves in a precarious situation. Balancing affordability and location preferences has become an arduous task, with limited options available. Renters must exercise caution and thoroughly navigate the challenging housing market to secure suitable accommodation that aligns with their budgetary constraints and lifestyle needs. Unless effective measures are implemented to address the affordability crisis, Lagos residents may continue to endure the hardships of an increasingly unattainable rental market.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Continue Reading
Comments

Company News

Meta Fires Employees For Using Office Free Meal Vouchers to Buy Household Items

Published

on

Facebook Meta

The parent company of Facebook, Instagram, and WhatsApp, Meta, has allegedly relieved about 24 staff members at its Los Angeles office of their jobs.

The affected staff were accused of using their $25 (£19) meal credits to buy items such as toothpaste, laundry detergent, acne pad and wine glasses.

It was gathered that the dismissals followed an investigation that revealed the employees had been exploiting the system, including sending food home when they were not physically present at the office.

One of the terminated employees was an unnamed worker earning a $400,000 salary.

Another sacked employee anonymously shared on the messaging platform Blind, explaining how she and her colleagues maximized their dinner credits to buy other necessities when they could get food elsewhere.

The breach was discovered as part of the human resources procedure even though one of the workers admitted to it.

According to reports, employees who occasionally bent the rules received warnings but retained their positions.

Free meals have long been a benefit for employees of major tech firms like Meta, founded by Mark Zuckerberg.

Typically, staff at larger offices, including Meta’s Silicon Valley headquarters, enjoy complimentary meals from on-site canteens.

Employees at smaller locations receive daily food credits, redeemable through delivery services like UberEats and Grubhub, with allowances of $20 for breakfast, $25 for lunch and $25 for dinner.

Continue Reading

Company News

Flour Mills of Nigeria to Invest $1 Billion in Expansion and Restructuring Over Four Years

Published

on

flour mills posts 184% increase in PAT

Flour Mills of Nigeria Plc, a Nigerian diversified agribusiness company, has announced plans to invest $1 billion over the next four years to expand its facilities and restructure the company.

Chairman John Coumantaros, in an interview on Tuesday, said the new funding is about “doubling down on investment in Nigeria.”

This investment will further support President Tinubu’s reform efforts at a time when companies like Diageo Plc and Unilever Plc are exiting or reducing their exposure to the West African nation.

Since coming to power in May 2023, President Tinubu has introduced a series of reforms from allowing the naira to free float to fuel subsidy removal to make the country more attractive to investors and steer it away from fiscal collapse.

According to Coumantaros, $500 million of the total investment will go into its sugar operations in Niger state to boost production from the current 100,000 tons to over 400,000 tons a year.

An additional $100 million will be allocated to a cassava-processing factory to end imports of starch from the tuber and expand its breakfast cereal offerings.

The 64-year-old company will also undergo reorganization following an offer from Excelsior Shipping Company Ltd. last month to buy out minority shareholders at 70 naira per share.

The company plans to restructure its more than 22 units into five individual companies, Coumantaros said.

“We want to be able to attract technical and financial partners to help us grow our sugar operations and food business. We have a lot of ambitious plans for investment and expansion.”

Continue Reading

Business

Allen Onyema, Employee Indicted in U.S. For Allegedly Obstructing Justice in Bank Fraud, Money Laundering Cases Slammed Against Them

Published

on

Allen Onyema Air Peace

Allen Onyema, the Chairman and Chief Executive Officer of Air Peace, a Nigerian airline, has been charged in a superseding indictment with obstruction of justice for submitting false documents to the United States Government in an effort to end an investigation of him in earlier charges of bank fraud and money laundering.

The United States government also charged alongside Onyema, his employee, Ejiroghene Eghagha, the airline’s Chief of Administration and Finance, for participating in the obstruction scheme, as well as in the earlier bank fraud counts.

In a statement issued by the U.S Government, the country’s Attorney Ryan K. Buchanan said the founder of the airline, accused of using his airline company as a cover to commit fraud on the United States’ banking system, has, along with Eghagha, who is a co-defendant in the fraud cases, allegedly committed additional crimes of fraud in a failed attempt to derail the government’s investigation of his conduct.

Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration (DEA), Atlanta Division also revealed that through the diligence of US federal investigative partners, the alleged obstruction scheme of Onyema and Eghagha was revealed, making it possible for the defendants to be held accountable for their aggravated conduct of attempting to impede a federal investigation.

For Assistant Special Agent in Charge Lisa Fontanette, Internal Revenue Service – Criminal Investigation Atlanta Field Office, “These cases represent the continued commitment of the Drug Enforcement Administration to identify and hold accountable those who engaged in fraud and money laundering.”

“Allegedly, Onyema and his accomplices fraudulently used the U.S. banking system in an effort to hide the source of their ill-gotten money.

“Today’s superseding indictment is indicative of the dedication IRS-CI special agents and our law enforcement partners have, as part of the Organized Crime Drug Enforcement Task Forces, to neutralize threats to the United States from criminal organizations.”

“The charges announced today demonstrate the criticality of diligence and truth in criminal justice proceedings,” said Steven N. Schrank, Acting Special Agent in Charge, Homeland Security Investigations Atlanta that covers Georgia and Alabama. “HSI and our partners are committed to pursuing those who seek to exploit our nation’s financial system and any efforts to cover up illegal activity,” she added.

The statement obtained by Investors King explained how Onyema allegedly committed the bank fraud and laundered money running into millions of dollars. The statement reads “Onyema, a Nigerian citizen and businessman, is the CEO and Chairman of Air Peace, a Nigerian airline founded in 2013. Between 2010 and 2018, Onyema travelled frequently to Atlanta, where he opened several personal and business bank accounts. More than $44.9 million was allegedly transferred into his Atlanta-based accounts from foreign sources.

Beginning in approximately May 2016, Onyema, together with Eghagha, allegedly used a series of export letters of credit to cause banks to transfer more than $20 million into Atlanta-based bank accounts controlled by Onyema.

The letters of credit were purportedly to fund the purchase of five separate Boeing 737 passenger planes by Air Peace and were supported by documents such as purchase agreements, bills of sale, and appraisals.

The documents purported to show that Air Peace was purchasing the aircraft from Springfield Aviation Company LLC, a business registered in Georgia.

However, the supporting documents were allegedly fake – Springfield Aviation Company LLC was owned by Onyema and managed on his behalf by a person with no connection to the aviation business, and Springfield Aviation never owned the aircraft.

The company that allegedly drafted the appraisals did not exist. Eghagha allegedly participated in this scheme as well, directing the Springfield Aviation manager to sign and send false documents to banks and even using the manager’s identity to further the fraud.

After Onyema received the money in the United States, he allegedly laundered over $16 million of the proceeds of the fraud by transferring it to other accounts.

In May 2019, upon discovering that he was under investigation in the Northern District of Georgia for bank fraud, Onyema and Eghagha allegedly directed the Springfield Aviation manager to sign a key business contract, but also specifically told her to not date the document.

In October 2019, Onyema allegedly caused his attorneys to present that same contract, now falsely dated as being signed on May 5, 2016 (prior to the bank fraud that began in 2016), to the government in an effort to stop the investigation and unfreeze his bank accounts.

Allen Ifechukwu Athan Onyema, 61, of Lagos, Nigeria, and Ejiroghene Eghagha, 42, of Lagos, Nigeria, were indicted on November 19, 2019, on one count of conspiracy to commit bank fraud, three counts of bank fraud, one count of conspiracy to commit credit application fraud, and three counts of credit application fraud.

Additionally, Onyema was charged with 27 counts of money laundering, and Eghagha was charged with one count of aggravated identity theft. On October 8, 2024, they were both charged in a superseding indictment alleging an additional count of obstruction of justice and one count of conspiracy to obstruct justice. The case is criminal action number 1:19-CR-464.”

However, the statement noted that an Organized Crime Drug Enforcement Task Forces (OCDETF) including the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Federal Aviation Administration, Department of Commerce, and Department of Treasury are investigating the case.

It informed members of the public that the indictments of Onyema and his co-accused person only contain charges, adding that the duo Nigerians are presumed innocent of the charges and it will be the government’s burden to prove their guilt beyond a reasonable doubt at trial.

The statement further disclosed that Assistant U.S. Attorneys Garrett L. Bradford and Christopher J. Huber are prosecuting the case.

“This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF,” it concluded.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending