We all know that rent is one of the biggest problems facing anyone trying to live in Lagos. In August 2026, the Lagos State Deputy Governor, Obafemi Hamzat, suggested that young people struggling with the cost of housing could consider living with their parents or relatives rather than rushing to rent their own apartments. The suggestion sounds practical until you consider that not everyone who comes to Lagos for work has parents or relatives in the city to live with.

For many young workers, finding a place to rent is therefore not really a choice but a necessity. And because rent is usually paid in one large annual payment, one of the first things people have to figure out is where they can find a house they can actually afford. That is why places like Ikorodu can look so attractive. A modest apartment in Ikorodu can cost around ₦550,000 a year. Compare that with about ₦1.5 million in Oshodi or ₦2 million in Yaba, and it is easy to understand why someone trying to manage a limited income might choose to live farther away. Why spend millions on rent when you can pay a fraction of that somewhere else?

The problem, however, is that the cost of the house does not end with the rent. You still have to get to work every morning and return home every evening. And in a city like Lagos, where distance often comes with traffic and multiple transport connections, that journey can become a significant part of what you spend to live there.

We looked at three workers who live in Yaba, Oshodi and Ikorodu and commute to CMS on Lagos Island. We wanted to see what happens when the cost of rent is considered alongside the money they spend getting to work every day. The answer is not quite what you might expect.

The Cheaper the Rent, the Longer the Journey

Take Bukky, a banker who lives in Ikorodu. She pays about ₦550,000 in annual rent. That is ₦1.45 million less than the ₦2 million that Funbi, an accountant living in Yaba, pays for her accommodation. If we stopped the calculation there, Bukky would clearly appear to have made the better financial decision. But her journey to work tells a different story. Her usual route involves travelling from Ikorodu to Ojota for about ₦1,500 before continuing from Ojota to CMS for another ₦2,000 to ₦2,500. A return journey can therefore cost her roughly ₦7,500 a day. If she makes that journey for 260 working days in a year, she could spend about ₦1.95 million on transport alone. That is more than three times what she pays in annual rent.

Funbi’s situation is almost the reverse. She pays more for her accommodation because she lives closer to Lagos Island, but her daily journey to work is cheaper. Her return trip from Yaba to CMS costs about ₦3,500, which would amount to approximately ₦910,000 over 260 working days.

Then there is Ibrahim, a sales representative who lives in Oshodi. He pays about ₦1.5 million in annual rent and roughly ₦4,000 each day to commute to CMS. Over 260 working days, his annual transport cost comes to about ₦1.04 million. Once we add the two costs together, the advantage of cheaper rent looks very different.

The striking thing here is not just that Ikorodu remains the cheapest option. It is how little it is separated from Oshodi once the cost of commuting is included. Bukky saves about ₦950,000 in rent compared with Ibrahim. But after paying for the journey to work throughout the year, that advantage is reduced to roughly ₦40,000. The difference becomes even more interesting when we compare Bukky with Funbi. Bukky pays ₦1.45 million less in rent, but once transport is included, the difference between what the two workers spend in a year is only about ₦410,000.

So two people can live in places where the rent is separated by nearly a million naira and still end up spending almost the same amount to live and work in Lagos.

What Should You Consider Before Renting?

This does not mean Ikorodu is a bad place to live or that everyone should pay more to live closer to work. It simply means that the cheapest rent may not always be the cheapest option for you. If you work remotely and rarely need to travel into the city, a cheaper apartment farther away could make perfect financial sense. If you work on a hybrid schedule and only need to be in the office once or twice a week, the higher transport cost may still be manageable. But if you have to report to work every day, the calculation changes.

Before choosing a house because the rent looks affordable, it is worth asking how much it will cost you to get to work each day. Multiply that daily transport cost by the number of days you expect to make the journey in a year, then add it to your rent. That gives you a much clearer picture of what the house is actually costing you. Our calculation does not tell everyone where they should live. It simply gives you enough information to make the trade-off for yourself. You might decide that paying more rent to live closer to work is worth it. You might decide that saving on rent and spending more on transport makes more sense. Or, if you work remotely, you may realise that living farther away gives you the best value. The important thing is to make that decision with the full cost in mind.

References

• The Punch. (2026, August 21). Live with parents or share rent, Lagos deputy governor advises young workers. The Punch
• Author interviews with three Lagos workers, August 26–28, 2026.
• Transport fare checks conducted at relevant bus parks and stops in Lagos, August 26–28, 2026.
• Rental price checks conducted through housing agents and current property listings in Yaba, Oshodi and Ikorodu, August 26–28, 2026.