Mr Nyesom Wike, Minister of the Federal Capital Territory, FCT, has attributed the rising cost of housing accommodation in FCT to market forces.
Wike stated this in Abuja on Saturday when he visited Zeberced Limited Quarry, Kubwa-Abuja, to see what the company was doing. While responding to questions from journalists on what the FCT Administration was doing to address high rent for accommodation in Abuja, the minister noted that everything has increased in cost.
He said no government legislates on rents for houses, but market forces.
Wike said: “You are aware that everything has actually increased. The man who built the houses didn’t build that he will not make profit at the end of the day.
“I don’t agree with people always complaining about rent increases. There are increases in everything today. So, rent should not be singled out.
“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.”
The minister however added that the government could come in with some regulations, saying “but cannot totally take over the housing processes.”
Many residents have expressed concern over the rising cost of living in the FCT, with accommodation costs being a major burden. Rent prices in some parts of Abuja have more than doubled in recent years, forcing many to relocate to the city’s outskirts.
The rising cost of accommodation has been a major concern for the residents, particularly in areas like Gwarimpa, Wuse, and Maitama, where rental prices have surged dramatically over the past year. Many low- and middle-income earners are now struggling to find affordable housing within the city.
In light of the challenges, stakeholders in the housing sector have also called on the government to provide more incentives for affordable housing development and consider introducing rent control mechanisms, although such measures remain contentious.
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