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Lagos State Government Recommits to Monthly Rental Scheme
The Lagos State Government has reaffirmed its commitment to implementing the monthly rental scheme, acknowledging that there have been delays in the process.
During a Ministerial Briefing marking the first anniversary of Governor Babajide Sanwo-Olu’s second term, the Commissioner for Housing, Mr. Moruf Akinderu-Fatai, addressed the issue. He assured stakeholders that the government is proceeding with the pilot phase of the scheme.
The Commissioner acknowledged that the delays were due to the need for thorough planning and consultations to ensure the scheme’s effectiveness and sustainability. The government is dedicated to providing affordable and accessible housing options for Lagosians and remains committed to the successful implementation of the monthly rental scheme.
“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.
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 Lagos State Government is implementing monthly rent payments statewide, offering numerous advantages:
• Improved cash flow management for tenants, facilitating budgeting for essential expenses.
• Reduced upfront financial burden associated with annual payments, particularly for households with limited income.
• Flexibility for tenants facing uncertain long-term plans or temporary financial challenges.
Monthly rent payments enhance landlord retention, as tenants are more likely to remain when affordable monthly payments are available, reducing costly turnover due to high annual payments.
Inclusivity and accessibility to housing increase with monthly rent payments, making homes more affordable for a wider range of individuals. This time-based payment structure promotes savings, unexpected expense management, and overall financial stability.
4Alignment between monthly rent payments and typical paychecks simplifies budgeting and financial planning for tenants.
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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