The Federal Capital Territory (FCT) Minister, Barrister Nyesom Wike, has explained the government’s inability to force landlords in the territory to lower rent prices, stating that the market drives these costs.
The Minister made this statement on Saturday during a visit to the Zeberced Limited Quarry factory in the Kubwa area of Abuja, the nation’s capital.
Wike noted that such an order could be counterproductive and limit investments in real estate, as Nigeria practices a capitalist economic system rather than a socialist or communist one.
He said the immediate priority of his administration is to focus on other areas of human development that would benefit everyone and ultimately lead to a reduction in the overall cost of living.
Wike said, “You are aware that everything has actually increased. The man who built the houses didn’t build them without expecting to make a profit at the end of the day.”
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“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 two-bedroom flat should not cost 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 things are determined by market forces.”
The Minister, however, added that the government could introduce some regulations but “cannot totally take over the housing processes.