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Lagos reignites hope for renters, offering assurances on monthly rental policy.
Once more, the Lagos State government has instilled optimism for renters, promising that relief is on the horizon. By the end of this year or the beginning of next year, the government plans to implement and enforce the monthly rental policy introduced a few years ago.
In a state where approximately 80 percent of its estimated 20 million residents reside in rented properties, the introduction of this policy will not only significantly benefit individuals and households economically but also bring stability to the state’s rental market, which currently largely favors landlords.
Barakat Odunuga-Bakare, the Special Adviser to Governor Babajide Sanwo-Olu on Housing, who disclosed government’s plan to revisit the monthly rental, said the idea is in line with global best practice, explaining that in other countries of the world, tenants don’t pay rents in advance as it is the practice in Lagos and other Nigerian cities.
“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,” she said.
Continuing, the special adviser noted, “the good part about it is that we would be test-running it first within the public sector since we can ascertain how much everybody is earning, and once we see that it works in the public sector, we can now push it out to the private sector.”
In light of the evident rental crisis in Lagos, Governor Sanwo-Olu remarked in 2021 that the traditional rental structure, where tenants pay annual rent upfront to landlords, is no longer sufficient to meet the current challenges in the housing sector, particularly in high-demand and costly urban settings.
During the 10th meeting of the National Council on Lands, Housing, and Urban Development held in Lagos, the governor endorsed a monthly rental system as a more feasible approach. He emphasized that this system would offer a more affordable alternative for low- and middle-income individuals, alleviating the financial burden of annual rent payments.
The Special adviser recalled that when the idea of the monthly rent system was mooted, N5billion was allocated for it, disclosing that the money was still untouched. She explained that the slow take off of the policy shows that the state government was still trying to perfect one thing or another.
“The last administration that initiated the monthly rental scheme was coming to an end when the scheme was to be introduced. Now, we have a new administration and the governor wants the scheme to come into effect by the end of this year or early next year,” she said.
Monthly rental idea in Lagos dates back to 2011 when Babatunde Fashola, the then governor, signed a tenancy law that sought to make it illegal for landlords to charge more than one year rent for a new tenant and not more than six months for a sitting tenant.
As minister of works and housing, Fashola also pursued, unsuccessfully though, the idea of monthly rent, believing that the yearly rental system had created inequality in housing supply and widened the affordability gap for low-income earners.
When Rabiu Olowo, the ten commissioner for finance in Lagos announced the N5 billion seed capital for the monthly rent, he disclosed that the scheme was set up to support both tenants and landlords regarding rent remittance.
The commissioner who spoke at a two-day event, organised by the Lagos State Real Estate Regulatory Authority (LASRERA), tagged ‘Lagos: 21st Century Real Estate Investment Hub,’ disclosed further that “the first set of beneficiaries of the scheme will be drawn from the formal sector, the second set will be from the informal sector and others will follow accordingly.”
The introduction of the monthly rental program followed a market survey carried out by the state government, uncovering that a significant portion of Lagos residents struggle to meet their yearly rent obligations.
“To start with, a N5 billion portfolio has been put in place to kick off the scheme. “We welcome more support from more financial institutions to raise the bar of the portfolio for the masses to enjoy from this policy,” Olowo said.
The Lagos State Government has said it would soon arrange a meeting with developers/owners of distressed buildings on how best to address the redesign and remodelling of such structures by November.
This was disclosed recently by the Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, at a function in Alahusa, Lagos.
Olumide said the prevalence of distressed buildings in different parts of the state was worrisome and needed the urgent attention of all stakeholders.
He said, “The Ministry of Physical Planning and Urban Development as mandated by the Lagos State Urban and Regional Planning and Development Law, 2019, as amended, was willing to extend its responsibility for approving the remodelling of existing buildings to provide technical assistance to developers and owners of distressed buildings, especially on the design and remodelling of such buildings.
The Federal Government has instructed the contractors responsible for the 107km Enugu-Onitsha road dualization to expedite the project.
This directive was given by the Minister of Works, Senator David Umahi, during a meeting with MTN, the Enugu State Government, and the contractors, RCC Ltd and Nigercat Ltd, on Friday.
According to a statement released on Friday, the minister said he is disappointed over the slow pace of work on the project, he said, “Let me express my disappointment over the slow pace of work on that project. It is one of the worst roads in this country.
“Everywhere we have diversion; diverting from the one that RCC and Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points.”
He added, “So, by the reason of the launching of our Operation Free our Roads, it is now a violation of the policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are potholes on our roads.”
He also blamed the sufferings of road users on the lack of commitment and insensitivity of the contractors.
“The public must know that the President’s intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on,” he said.
The Minister commended the Enugu state government for their resolve to fund the construction of a 20 KM section of the road and expressed hope that MTN would execute the second phase of the project.
He noted, “Why the Enugu State government is intervening is because of the slow pace of work by the contractors and because of funding issues. The essence of tax credit is for funds to be made available. And so, I don’t see RCC going to keep their promise to finish this project in 6 months.
“My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best. While they are doing the road, and if Nigercat is doing a good job, you can give them greater scope to do if you want to finish that job.”
He warned contractors that the Federal Government would not accept phased handovers of projects and has phased out Variation of Price in contract administration.
The Ekiti State government has intervened to resolve a longstanding land dispute between the Elepe of Epe-Ekiti, Oba Ayodele Adesoye, and the Atolagbe family. The government cautioned against the misuse of modernization as an excuse to disregard traditional customs.
In line with the community’s traditions, the government has ordered the release of resources, including palm trees at Oko Oba Farmland, to Oba Adesoye for his administration. This decision ensures the continued adherence to age-old practices.
Ekiti State Deputy Governor, Chief (Mrs) Monisade Afuye, announced the resolution in Ado-Ekiti. The decision was made after considering the Elepe’s claim to Oko Oba Farmland based on historical evidence.
Mrs. Afuye acknowledged the Elepe’s right to be the custodian of Oko Oba Farmland, citing longstanding traditions that support his claim. The decision reflects the importance of respecting historical practices and ensuring their preservation.
The deputy governor, however, told the monarch in clear terms that other princes and princesses from all the three ruling houses should be allowed to farm on the land without payment of royalty.
Mrs Afuye appealed to the community to comply with the government’s position to restore unity, peace and orderliness to the beleaguered community.
Oba Adesoye expressed gratitude for the government’s decision and pledged to foster peace and unity between the throne and the community, aiming to accelerate Epe’s development.
Representing the Atolagbe family, Dr. Yemi Agbeleoba acknowledged their willingness to cede Oko Oba Farmland to the monarch. However, he emphasized the need for all three ruling houses to participate for a lasting and traditional solution.
Agbeleoba expressed appreciation for the government’s directive, believing it will contribute to resolving the long-standing conflict.
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