The Lagos state government has unveiled plans to build a digital rental platform for monthly rent payments by residents of the state.
The state government disclosed this in a document titled EKO Revenue Plus Summit, themed “Unlocking New Revenue Streams for Lagos State” where the state planned to raise N2.5 billion per annum from an estimated 100,000 subscriptions annually.
According to the report, the digital platform will be co-owned by the Lagos state government through agencies such as the Lagos State Ministry of Housing and other MDAs in the state as technical partners.
It states, “Lagos Rent Payment Platform- A digitized monthly payment platform co-owned by LASG to activate payment of monthly rents. Income is from transaction fees of an estimated 100,000 transactions monthly @ 5% Transaction Fees are estimated at N2.5b p/a”
The state government’s document also stated that it will invest around N300 million in building the digital platform, operations, marketing, and promotions in the next 4 to 6 months.
Backstory
The document’s disclosure follows a similar statement by the state’s commissioner of Housing, Mr. Moruf Akindeli-Fatai where he affirmed its commitment to launching the monthly rental scheme and acknowledged that access to affordable financing remains a significant challenge, especially for low-income households in Lagos State. However, he noted that affordable housing is a global challenge, with rising prices and rents worldwide.
- Akinderu-Fatai described Lagos as Nigeria’s urbanization epicentre, highlighting its annual population growth rate of 3.34%, with 90 new residents every hour. He added that the rapidly increasing population and the limited land area of 3,577 km², a third of which is covered by water, further constrain housing development in the state.
- The Commissioner previously warned that penalties would be imposed on homeowners found guilty of charging exorbitant rents.
- Akinderu-Fatai mentioned that residents of various state housing schemes have lodged complaints about high rental fees. He added that the state government plans to withdraw allocations from homeowners found culpable.
What you should know
A recent Nairametrics report revealed that rents in Lagos State have surged by over 100% in the past four years, significantly outpacing stagnant or slightly increased incomes. This substantial discrepancy is placing severe financial strain on the budgets of ordinary Lagosians.
The Lagos State Government has consistently condemned arbitrary rent increases and charges by landlords, urging residents to speak out against such practices instead of suffering in silence.
To tackle this issue, the state government has established a new agency to regulate and monitor both tenants and landlords to ensure fairness. They emphasized that laws are often forgotten if not enforced or challenged.
