Nigerians Shift to Long Leases Amid Rising Property Costs

Moshood Ajeniya, Managing Director of TerraPath Development Limited, explained that an increasing number of Nigerians are choosing long leases over outright property ownership due to rising costs associated with land, building materials, and labor. According to World Bank data, Nigeria's inflation averaged 33.2% in 2024 before decreasing to about 23.0% in 2025, yet prices for housing have not reversed.

The median asking rent for a two-bedroom flat in Gbagada rose to N4.5 million per year in July 2026, a 50% increase from the previous year. Ajeniya noted that the traditional dream of owning property is being re-evaluated as many middle-class Nigerians consider secure access to quality properties for 15 to 25 years instead of permanent ownership.

For example, a property valued at ₦150 million for outright ownership is available for a long lease at approximately ₦50 million, significantly reducing upfront costs. This trend reflects the economic realities faced by many families in Nigeria.