The Lagos State Government has reaffirmed its commitment to launching the monthly rental scheme.
The Commissioner for Housing, Mr. Moruf Akinderu-Fatai, reiterated this on Thursday during a Ministerial Briefing marking the first anniversary of Governor Babajide Sanwo-Olu’s second term.
He acknowledged the delays but emphasized that the government is proceeding with the pilot phase.
“Although there are several factors impeding the take-off of this initiative, I want to use this medium to reaffirm that plans are being perfected to effect the pilot phase of this initiative,” Akinderu-Fatai said.
The Commissioner admitted that access to affordable financing has remained a hurdle, particularly for low-income households in Lagos State, which in turn, has led to social and economic problems such as poverty and poor health.
He, however, noted that the issue of affordable housing is a global challenge, saying housing prices and rents are rising globally.
Akinderu-Fatai, describing Lagos as Nigeria’s urbanization epicentre, highlighted that the state’s population is growing at an annual rate of 3.34%, with 90 new residents every hour. He added that the rapidly increasing population, coupled with a limited land area of 3,577 km², a third of which is covered by water, further restricts housing development in the state.
He expressed confidence that affordable housing in Lagos is achievable but requires bold and resilient strategies.
What you should know
- Lagos residents are facing a significant housing crisis. Rental costs have been rising across the state, increasing by as much as 100% in the past four years, putting a strain on the income of the middle and lower classes. In addition, the pressure from property owners to pay one or two years of rent upfront further strains the incomes of Lagosians.
- In a bid to stifle the sharp practices of some landlords charging as much as two years of rent upfront, the Special Adviser to the Governor on Housing disclosed in March that the state’s monthly rental scheme would be enforced before the end of the year or early 2025.
- During a news conference organized by the Lagos State Real Estate Regulatory Authority that March, she emphasized that the scheme aims to shift the current system of paying rent annually to a monthly payment system.
- The monthly rent payments, which the Lagos State Government is working on implementing across the state, have several benefits. These include providing better cash flow management for tenants, making it easier to allocate funds for other essential expenses, reducing the upfront financial burden that annual payments impose (especially for low-income households), and providing flexibility to tenants who may be uncertain about their long-term plans or facing temporary financial constraints.
- Other benefits of the monthly rent payment option include landlords being more likely to retain tenants who can afford monthly payments rather than risking turnover due to the high cost of annual payments.
- Additionally, more people can afford to rent homes when monthly payments are an option, promoting inclusivity and reducing barriers to housing access. Spreading rent payments over time allows tenants to build savings, handle unexpected expenses, and maintain better financial stability.
- Moreover, monthly rent aligns with how most people receive their income, usually in monthly paychecks, making budgeting more straightforward.
