Minister of the Federal Capital Territory (FCT), Nyesom Wike, has stated that the government cannot compel Abuja landlords to lower house rents, as rental prices are largely determined by market forces. During a recent address, Wike highlighted the broader economic pressures affecting the housing market, emphasizing that the rising costs of goods and services have had a ripple effect on rent prices.
“No government puts a cap as regards the cost of rent. It is the market forces,” Wike said, pointing out that the current economic realities make it difficult for landlords to maintain low rent prices without impacting their profits. “The man who built the house didn’t build that he would not make profit at the end of the day.”
Wike dismissed the constant public outcry over rent increases, noting that nearly all commodities have experienced price hikes due to inflation and rising operational costs. He stressed that singling out rent while ignoring the broader context of increasing prices in other sectors was an oversimplification.
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In his remarks, the FCT Minister argued that attempting to regulate rental prices through legislation, such as capping the cost of a two-bedroom flat at N50,000 or N100,000, would deter real estate investment. “I don’t think you are encouraging investors,” Wike stated, adding that there are more pressing challenges the government should be addressing.
His comments come amid growing concerns from Abuja residents about soaring housing costs, which many say are becoming unaffordable. However, Wike maintains that the solution does not lie in regulating rent, but in addressing the underlying economic factors driving price hikes across various sectors.