- Minister Nyesom Wike attributes rising housing costs in Abuja to market forces, stating that rent prices reflect broader economic increases
- Wike emphasizes that the government cannot legislate rent prices, as they are determined by supply and demand in a capitalist economy
Nyesom Wike, the Minister of the Federal Capital Territory (FCT), has explained that market forces drive the rising cost of housing in Abuja. Speaking in Abuja on Saturday during a visit to Zeberced Limited Quarry in Kubwa, Wike responded to concerns about the high cost of rent in the FCT, emphasizing that the rent increase reflects the broader rise in costs across various sectors.
Wike highlighted that no government can legislate rent prices, as market dynamics dictate them. He stated, “Everything has increased. The man who built the houses didn’t build them without expecting a profit.”
He added that focusing solely on rent increases without considering the general cost rise is unfair. “There are increases in everything today. So, rent should not be singled out,” Wike said.
The minister further explained that the government could not enforce unrealistic rent caps, such as fixing a two-bedroom flat at N50,000 or N100,000, as this would discourage investors. He noted that Nigeria operates a capitalist economy, where prices are determined by supply and demand, rather than a socialist or communist system where the government controls prices.
However, Wike acknowledged that the government could introduce some regulations to manage the housing sector but cannot completely control housing prices.