The January 1, 2012 announcement by the Federal Government of a new petrol pump price of N141, later reduced to N97, up from N65, has begun to take its toll on the spending of Nigerians, as the prices of commodities, transportation and rent have soared. Investigations revealed that house rent in Lagos State, which steadily increases yearly even when there is no reason to justify such, appears to be the worst hit by the new petrol price as landlords and property developers in the state have increased the rent of apartments by over 50 per cent in some cases and have introduced additional fees to be paid by tenants. Add to this the fact that the landlords and property developers now demand for two or three years’ rent in most cases despite the law prohibiting the collection of more than six months’ rent in some cases.
Deji Olumide, a staff with the Federal Airport Authority of Nigeria said he paid N150,000 for a one-room apartment in Mafoluku area of the state. Olumide said: “When I was posted to Lagos December last year, I was told by my agents that house rent for a one-room apartment was between N80,000 and N100,000 per annum. We made frantic efforts to get a room but none met my taste. When I returned to Lagos after the holiday and the strike in January, I went searching for accommodation again and this time I was told that the one-room apartment is N150,000 per annum. I paid two years rent and other sundry charges which amounted to N470,000. As you can see, the rent has increased d drastically in the last one month.”
Joan Ezechukwu, a newly-employed staff with a baggage handling company in Lagos State, said she is asking her employer for a salary advance in order to rent an apartment. Ezechukwu said: “I got a job recently in Lagos and I went round looking for accommodation. The landlord around Shogunle area told me that a room and parlour self-contained goes for N220,000 to N250,000 per annum and they are requesting for two years rent with other sundry charges . I don’t know what to do now as I have been squatting with friend. I had to ask my employer for a salary advance to pay up.”
Defending the increase in rent, landlords and property developers blame the rise in rent on the new fuel price and its effects on building materials. Makinde Olalere , a property developer, said the prices of building materials have increased in the last one month. Olalere said: “We are experiencing the effect of the new fuel price, which has affected building materials like cement, nails, woods, brick tiles and others. The traders said the cost of transportation increased so they had to increase the price of their goods. So we also had to increase the rents so as to cover the new prices of commodity in the market.”
While house rent have continued to soar, so also is the transportation fare in the state as commercial drivers have also increased their fares. For instance, fare from Oshodi to Mile 2, which used to cost N50, now goes for between N80 and N150. Commercial motorcycle, popularly known as okada, have also increased their fares as a ride within the Onipanu area, which used to cost N70, is now N150.
Investigation further revealed that the prices of food items have also increased, with a bag of rice, which used to sell for N6,000, at the Mile 12 Market, now sells for N8,400. The price of yam, beans, garri, fruits, groundnuts, among other staple food have also increased drastically.
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