The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has attributed the high cost of renting housing in Abuja to market forces, stating that the government cannot control the prices set by landlords. Wike made this statement on Saturday, September 14, during a visit to Zeberced Limited Quarry in Kubwa, Abuja, where he responded to questions about the rising rent costs in the capital.
Addressing the concerns raised by residents about the increasing cost of accommodation, Wike pointed out that the situation is driven by economic realities.
“You are aware that everything has actually increased,” the minister said. He explained that property developers invest to make a profit, and rising costs across the board inevitably lead to higher rents.
Wike also rejected the idea of capping rents through government legislation, saying, “I don’t agree with people always complaining about rent increases. There are increases in everything today. So, rent should not be singled out.”
He added that rent prices, like other commodities, are influenced by the free market and the principle of supply and demand.
The minister clarified that the government does not directly regulate house rents because it operates under a capitalist system, where prices are determined by market forces rather than government control. He emphasized that a move to cap rent would discourage investors from building more housing.
“You want us to make a law and say that a 2-bedroom flat should not be more than N50,000 or N100,000 for example.
“I don’t think that will encourage investors. We are not running a socialist or communist system; we are running a capitalist economy, and these are determined by market forces,” Wike said, suggesting that such an approach would hurt investment.
While Wike acknowledged the challenges faced by residents due to high rents, he stated that the government could introduce certain regulations, but it could not entirely control the housing sector.
“The government can come in with some regulations but cannot totally take over the housing processes,” he noted.
Wike’s comments come amid widespread complaints from Abuja residents, who have expressed frustration over the sharp rise in housing costs in the city. Many believe that the government should do more to intervene and make housing affordable. However, Wike’s stance highlights the complexity of balancing economic principles with social needs.
The visit to Zeberced Limited Quarry was part of Wike’s efforts to assess development projects and understand the infrastructure supporting the FCT. He used the opportunity to address the public on a pressing issue affecting both residents and investors in the housing market.