The ‘Total Package’ Trap: Why Renting a Home in Nigeria is Becoming Nearly Impossible

By Faith Jacob and Abdullahi Bello

From inflated agency fees to substandard buildings, systemic failures are turning the search for housing into a financial minefield for Nigerian renters.

The phrase “total package” has become one of the most troubling expressions in Nigeria’s rental housing market. For countless families, young professionals, and low-income earners, it no longer represents a simple breakdown in costs but a gateway into financial distress that often leads to housing insecurity.

Across Nigeria’s major cities, the experience is increasingly uniform. A prospective tenant identifies a rental listing that appears affordable and proceeds with cautious optimism. However, once contact is made with an informal house agent, often loosely referred to as a realtor, the reality of the housing market quickly becomes apparent. An inspection fee is demanded, followed by additional charges once interest is confirmed. These include annual rent, caution fee, agreement fee, and an agency fee that frequently exceeds ten percent of the rent. What initially seemed achievable becomes unattainable, and for many Nigerians, decent housing slips further out of reach.

This reality prompts an urgent national conversation. Is Nigeria’s housing crisis truly driven by scarcity or is it the result of systemic failure in housing governance, regulation and accountability?

Historically, landlords in Nigeria engaged directly with tenants. While disputes did arise over rent defaults or property maintenance, this system allowed for transparency and limited financial barriers to entry. Where challenges occurred, landlords often employed caretakers to manage properties on their behalf. These caretakers were compensated by landlords and served as supervisors rather than profit driven intermediaries.

As Nigeria’s urban population expanded, particularly among young people migrating to economic hubs, the demand for rental housing increased significantly. In response, housing agents emerged to bridge the gap between landlords and tenants. Over time, this role expanded beyond facilitation into an unregulated industry driven largely by profit.

Today, the housing agent space operates with minimal oversight. Individuals with no professional training or licensing present themselves as agents, impose arbitrary charges, and operate without accountability. Agency fees that once ranged between five and ten percent have risen to as much as thirty percent in some urban areas. These inflated costs disproportionately affect first time renters, low-income households, and young professionals already burdened by inflation and stagnant incomes.

While there is no unified national tenancy law, professional bodies such as the Estate, Rent and Commission Agents Association of Nigeria, ERCAAN, have established standards. ERCAAN’s 2022 National Constitution clearly states that registered members must not collect more than ten percent as agency fees on rental and sales transactions unless otherwise negotiated and agreed upon. Despite this provision, violations are common and largely unchecked.

The challenge is not the absence of rules but the failure to enforce them. Many agents operate outside any professional association, while others exploit weak regulatory mechanisms. Tenants, often unaware of their rights, bear the consequences. As a result, housing has increasingly become a high-risk transaction rather than a basic social necessity.

Even when tenants manage to meet the financial demands of the rental process, many are confronted with another injustice. Across urban Nigeria, renters routinely pay premium prices for housing that falls below acceptable standards. Poorly maintained buildings with structural defects, unreliable utilities, and unsafe living conditions are rented at rates comparable to well-maintained properties solely due to location.

This practice places an unfair burden on tenants and discourages landlords from investing in maintenance. A functional housing system must ensure that rental values reflect quality, safety, and habitability rather than location alone.

Although states such as Lagos and the Federal Capital Territory have introduced tenancy laws, enforcement remains inconsistent. Many states still lack any comprehensive legal framework governing rental practices. This regulatory gap has enabled exploitative practices to thrive unchecked.

There is an urgent need for state governments to enact and enforce tenancy laws that balance the rights of landlords and tenants. These laws should regulate agency fees, protect tenants from arbitrary eviction, and provide accessible dispute resolution mechanisms. Importantly, enforcement agencies must be empowered and resourced to ensure compliance. Housing agents should also be required to operate under licensed brokers or registered firms. This would establish clear accountability and provide tenants with avenues for redress when abuses occur.

ERCAAN’s constitution outlines a mandate to support government efforts in curbing inflationary rents and to lead nationwide campaigns against fake real estate agents in collaboration with law enforcement agencies. However, the impact of these provisions remains limited due to low public awareness and inconsistent implementation. A coordinated national awareness campaign is essential. Nigerians must be informed about legitimate agency practices, fee limits, and verification mechanisms. Without public knowledge, even the strongest regulations remain ineffective.

While government intervention is critical, responsibility does not rest with policymakers alone. Tenants must approach rental agreements responsibly, treat properties with care, and make realistic financial decisions. Landlords must prioritize fair pricing and proper maintenance. Professional associations must actively regulate their members, while government agencies must enforce the law without compromise. Nigeria’s housing challenge is not rooted in absolute scarcity. It is the product of weak governance, poor enforcement, and an unchecked informal intermediary system.

Housing is not a privilege reserved for the few. It is a fundamental human need and a pillar of economic and social stability. Given the detrimental effects of “Total package”, Nigeria must act decisively to restore fairness and transparency to its housing sector. State governments must strengthen tenancy laws and ensure enforcement. Professional bodies must take responsibility for self-regulation. Housing agents must be registered and monitored. Tenants must be protected from exploitation.

Most importantly, Nigerians must demand change. Illegal charges should be questioned. Abuses should be reported. Policies that prioritize housing affordability and accountability must be supported. Without urgent action, the so-called total package will continue to deepen inequality and housing insecurity across the nation. The time to reform Nigeria’s housing system is now.

*Faith Jacob is an urban planner and policy researcher with interest in social equity, housing and infrastructure resilience.

*Abdullahi Bello is a researcher with specialization in big data for urban resilience and engineering solutions.