Good News as Tenants in Nigerian State to Start Paying Rents Monthly

Good News as Tenants in Nigerian State to Start Paying Rents Monthly

  • The Lagos state government has concluded plans to introduce and implement a monthly rental policy
  • This, the government said, is part of efforts to help ease the current hardship on residents of the state
  • The government said that upon successful implementation, the policy will then be extended to the private sector journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

The Lagos State government has instilled optimism among home renters, pledging relief in the near future through the enforcement of a monthly rental policy conceived several years back.

Governor Sanwo-Olu advocates for a monthly rental system
Governor Babajide Sanwo-Olu voiced support for a monthly rental system, emphasizing its affordability for low-and middle-income earners. Photo credit - Ark Properties, Lagos State government
Source: UGC

It is common knowledge that a lot of Nigerians struggle to save up for the ever-increasing yearly rental fees usually demanded by landlords.

The landlords and homeowners, on the other hand, have consistently indicated the rising cost of building materials like cement to be responsible for the high cost of rents and the need to collect on a yearly basis.

Read also

Did Bauch govt earmark N5bn for foodstuff, refreshment amid economic hardship? Details emerge

Monthly rent collection to be implemented soon

Barakat Odunuga-Bakare, the Special Adviser to the Governor of Lagos State on Housing, has revealed that the implementation of the state's monthly rental scheme is slated to commence either by the conclusion of 2024 or in the early months of the following year.

According to The Punch, the announcement was made during a recent press briefing held by the Lagos State Real Estate Regulatory Authority in Ikeja, Lagos.

Odunuga-Bakare said:

“We all see what is being done in other climes, rents are collected monthly. Hence, we are looking and hoping that before the end of the year, or by early next year, we will be able to implement the policy of monthly rental. Also, the rental would be charged according to tenants’ earnings."

Read also

“Bear with us”: Water producers give reasons for new price of sachet water

She mentioned that the government plans to pilot the policy initially within the public sector, leveraging its ability to accurately assess individuals' income levels.

The policy will be extended to the private sector after successful implementation and validation.

According to BusinessDay, Odunuga-Bakare emphasized that the allocated N5 billion for the monthly rental scheme remains reserved and untouched.

She further noted that the sluggish implementation of the scheme indicates the Lagos State Government's ongoing efforts to refine various aspects of the initiative.

Sanwo-Olu advocates rental policy

In connected developments, Governor Babajide Sanwo-Olu voiced support for a monthly rental system, emphasizing its affordability for low- and middle-income earners who face challenges with yearly rental commitments.

He stated that Lagos is devising monthly rent arrangements to accommodate residents who are not inclined towards the state's homeownership program.

Sanwo-Olu said:

“In Lagos, we operate a very robust rent-to-own programme of five per cent down payment and six per cent simple interest rate payable over 10 years. We are working on another product, which is a purely rental system, where residents will pay monthly.”

Read also

Lagos opens up on sharing of N20k as ‘Ramadan support fund”

He encouraged policymakers to heed the suggestion and establish a regulatory framework to facilitate the transition to the proposed new rental system.

Reacting to the government's promise, Shola Ademuyiwa, a resident of the state, told that the implementation of such a policy would be very welcomed by Lagosians.

He said:

"I recall the government has been planning this since when Babatunde Fashola was the governor and we were hoping this would have happened before the end of his administration.
"However, if this administration can implement it, it would be very commendable because gathering large sum of money to pay for rent every year can be very hectic for residents. It would actually lift off the burden that Lagos tenants are usually faced with."

Ademuyiwa also added that the government should also consider looking into the high rents that landlords charge tenants to rent properties.

Government goes after homeowners inflating house rents

Read also

FG moves to crash rice price, purchases 58,500 tons to saturate the market

Meanwhile, earlier reported that the Lagos State Government announced its intention to enforce penalties against homeowners discovered to be charging excessively high rents for their apartments.

Moruf Akinderu-Fatai, the Commissioner for Housing, issued a statement indicating the government's determination to act against individuals engaging in such exploitative practices.

The commissioner noted that numerous residents in state housing schemes had raised concerns about the steep rental fees imposed by certain homeowners.

Furthermore, he emphasized that the government would revoke allocations from those found guilty of such actions.


Online view pixel