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Nigerians react as finance expert rates home ownership a bad investment

Tayo Oyedeji, a finance expert, argued that homeownership is a bad investment if the purpose is to live there.



Nigerians react as finance expert rates home ownership a bad investment

In Nigeria, buying a car is regarded as a liability while owning a house is rated as a good investment. However, this line of thought was recently questioned by finance expert, Tayo Oyedeji who argued that homeownership is a bad investment if the purpose is to live there.

Oyedeji is an entrepreneur who feels renting a home is wiser than owning it. He gave an example of himself, stating that he owns few properties which according to him are a bad investment on his part.

Why people own homes

According to Tayo Oyedeji, most people own properties because of psychological comfort, societal expectations, and cultural norms, but when the finances or returns on investment are factored in, such mentality is a bad investment.

Oyedeji stated that investment shouldn’t be made based on emotion. This, he believes could negatively affect people. He said investment should be based on ‘Math’, meaning, finances and returns on investment should be considered, therefore, living in a home you own is a bad investment.


The finance expert expressed his thoughts through his Twitter account, @tayooye. He shared on his timeline that, “The home you live in is your worst investment. For some of us, it’s not even an investment. Don’t buy the hype, do the math. A home purchase for living is a bad investment.” He, however, said buying to rent is a better investment.

[READ MORE: Reactions trail Onitsha fire as extent of damages become clear]

Reasons for Oyedeji’s stance

While defending his claim, Oyedeji opined that:

  • An average property in Lagos is N40 million.
  • Treasury bill rate is about 12%.
  • Your N40 million will yield N4.8 million a year.
  • You can rent a good home for N1.5 million and still have N3.3 million left over.
  • Your house is costing you N3.3 million per year. Do the math.

In his reaction to one of the comments on his statement, Oyedeji said, “Homeownership is usually a bad investment in most places, even in the US. There are much better-performing asset classes and it limits your mobility.”

When and why you should buy a home

According to Oyedeji, individuals shouldn’t buy a home unless

  • Mortgage is < 8%.
  • You can pay cash.
  • You plan to live in it for 10 years.
  • You need the psychological comfort of homeownership.

Oyedeji ended his argument by stating that, “Renting is wiser for MOST people” = “Buying is a good option for SOME people”

Reactions that trailed his comment

Those in support of Oyedeji

There were Nigerians who were quick to support Oyedeji, stating that he wasn’t far from the truth.

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Those against Oyedeji


Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Covid-19: U.S. donates field hospital worth $1.3m to Nigeria

The United States of America has donated a field hospital worth $1.3 million to Nigeria.



NPHCDA to address infrastructural gaps in COVID-19 vaccine supply, FG to focus on procurement of Covid-19 vaccine in first quarter 2021

The United States has donated field hospital worth $1.3 million to Nigeria.

The U.S. has donated field hospital worth $1.3 million to Nigeria, in a bid to further contain the spread of Covid-19 cases and its related deaths.

According to a report by The Nation, the field hospital is located at the Federal Medical Centre in Jabi, Abuja.

The facility contains four fully equipped, negative pressure isolation facilities with the capacity to house up to 40 patients, an administrative unit, a 160-kw auxiliary generator, as well as other support equipment such as beds, sub-floors, showers and lavatories.

The facility was donated to the Nigerian Federal Ministry of Health by the United States Department of Defence’s U.S. Africa Command, with support from the U.S. Centre for Disease Control (CDC) and the Walter Reed Army Institute of Research (WRAIR).


The facility was manufactured and built in the US by Alaska Structures, while a team of Nigerians assembled it in Abuja.

The facility was commissioned by the Minister of State for Health, Dr. Senator Olorunnimbe Mamora and the U.S. Ambassador to Nigeria Mary Beth Leonard.

What they are saying

Ambassador Leonard noted that:

“As we celebrate 60 years of U.S.-Nigeria diplomatic relations, and many years of health partnerships, it is deeply satisfying to look back on the many ways we have worked together to improve the health, safety and security of the Nigerian people,

“Supporting the healthcare workers who are caring for patients at this facility and across the country, is critical to Nigeria’s effort to slow the spread of COVID-19.”

What you should know

According to Nairametrics Covid-19 tracker, as of Monday 25th January 2021

  • The total number of cases stood at 122,996.
  • The total number of death stood at 1,507.
  • The total number of tests conducted stood at 1,270,523.

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Nigeria seeks technical support from UKNIAF to transform critical power infrastructure, projects

UKNIAF could help Nigeria transit from the ‘Transitional Electricity Market (TEM)’ to the ‘Medium-Term Electricity Market (MTEM)’.



The Federal Government is in talks to partner with the United Kingdom Nigeria Infrastructure Advisory Facility (UKNIAF) to transform critical power infrastructure and projects.

FG intends seeking technical support from the facility, focusing on power sector policy reforms, Tariff reforms, DisCo audits, grid efficiency and sustainable off-grid renewable solutions.

This was disclosed by the Ministry of Power, after the Minister, Engr Salem Mamman, met with members of UKNIAF led by Program Lead for Power, Mr. Frank Edozie on Monday via its Twitter handle.

The Ministry of Power tweeted, “The Hon. Minister of Power @EngrSMamman held a meeting with members of the United Kingdom Nigeria Infrastructure Advisory Facility @ukniaf led by Program Lead for Power, Mr. Frank Edozie to discuss partnering to transform critical power infrastructure and projects.

“They discussed how the facility can be of help with providing technical support to @NERCNG, @TCN_NIGERIA, @realREANigeria & @nbetnigeria by focusing on, Power sector policy reforms, Tariff reforms, DisCo audits, grid efficiency and sustainable off-grid renewable solutions.”


What it means

Aside from offering technical support to sector’s regulators and other agencies, the partnership, if it works, would help Nigeria transit from the ‘Transitional Electricity Market (TEM)’ to the ‘Medium-Term Electricity Market (MTEM)’ which involves increased generation competition and limited retail competition.

What you should know

The Hon. Minister was joined by the Director, renewable energy resources Engr. Faruk Yusuf Yabo, his Special Adviser on Policy @abbaaliyu_, his Technical Adviser on Strategic Coordination Dr. Nurain Hassan @inhassan and his Technical Assistant on ICT & Digital Communications.

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International Energy Insurance appoints Ebunolu Ayeni as acting MD/CEO

International Energy Insurance Plc announces the appointment of Ebunolu Ayeni as acting Managing Director/CEO.



Insurance in Nigeria, FBN Holdings Annual general Meeting, FBN General Insurance Limited CEO Bode Opadokun, FBN General Insurance Limited 2018 financial result

International Energy Insurance has announced the appointment of Mr Ebunolu Ayeni as the new acting Managing Director of the firm, following the retirement of his predecessor, Mr Peter Irene.

This is according to a disclosure signed by the firm’s secretary, Adeyinka Hassan and sent to the Nigerian Stock Exchange, as seen by Nairametrics.

The appointment of Mr Ebunolu Ayeni is sequel to the resignation of Mr Peter Irene, who until his resignation on December 20, 2020, was the Managing Director/ CEO of the firm. According to the notification, Mr Ayeni has immediately taken over the leadership of management in an acting capacity, in order to fill the void, pending the approval of the National Insurance Commission for the appointment of a substantive Managing Director.

Mr Ayeni is an alumnus of the University of Lagos, where he obtained a BSc. Degree in Insurance. He also has a Master’s degree in Marketing and Management from Ladoke Akintola University and Enugu State University respectively.

In terms of professional membership, Mr Ayeni is a fellow of the Insurance Institute of Nigeria, a member of Nigeria Council of Registered Insurance Brokers and the Institute of Loans and Risk management, Nigeria.


What you should know

  • International Energy Insurance Plc provides insurance solutions to the energy sector. The company’s scope include; oil and gas, engineering/car, bond and finance among others.
  • International Energy Insurance Plc share price closed trading on 25th of January, 2021 at N0.38.

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