Lagos Deputy Governor Hamzat Advises Young Workers: Don’t Spend More Than 40% of Income on Rent

Young workers in Lagos should avoid taking on rental costs they cannot comfortably afford and consider living with family members or sharing accommodation while building their careers, Deputy Governor Obafemi Hamzat has advised.

Hamzat gave the advice on Thursday during a question-and-answer session with Nigeria Info FM, while responding to concerns about how young workers earning modest salaries can cope with Lagos’ rising housing costs.

He said securing a first job should not automatically mean moving into a private apartment, especially when the cost of rent is far beyond the worker’s income. Hamzat encouraged young people to start with modest accommodation and upgrade as their earnings improve.

“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.

The deputy governor said young Nigerians could live with parents, relatives or friends while establishing themselves financially, arguing that such arrangements should not be viewed negatively. He also cited living arrangements in countries such as Turkey, where young people may share accommodation or remain with family while building financial stability.

Hamzat also highlighted mortgage financing as a longer-term solution to Nigeria’s housing affordability problem. He said Lagos’ mortgage system was designed to allow residents who can demonstrate their ability to repay to purchase homes without making the entire payment upfront.

He explained that the Lagos State Residents Registration Agency (LASRRA) identification system could help establish applicants’ identity, address and employment details when assessing their eligibility for mortgage financing. As an example, he said someone buying a N7 million property in Bisedi could pay 10 per cent, or N700,000, and spread the remaining amount over 10 years, depending on their repayment capacity.

The deputy governor stressed that improving housing affordability would also require stronger incomes and a healthier economy. He said reducing the pressure created by rising prices of goods and services would give residents more room to save, meet housing costs and eventually pursue home ownership.