The Special Adviser to the Lagos State Governor on Housing, Barakat Odunuga-Bakare, recently announced that the state’s monthly rental scheme is poised to be enforced by the end of 2024 or early next year. Speaking at a press briefing of the Lagos State Real Estate Regulatory Authority in Ikeja, Lagos, she emphasized the need to align with international practices where rents are collected monthly.
Odunuga-Bakare highlighted that the rental charges would be tailored to tenants’ earnings, introducing a more flexible approach to accommodate various income levels. To ensure a smooth implementation, the government plans to test-run the policy within the public sector first, utilizing the opportunity to gauge its effectiveness and make necessary adjustments before extending it to the private sector.
The allocated N5 billion for the monthly rental scheme remains intact, indicating the government’s commitment to this housing initiative. Odunuga-Bakare acknowledged the slow start, attributing it to the meticulous process of perfecting the scheme. The initiative’s history dates back to the previous administration, and the current governor, Babajide Sanwo-Olu, is determined to see it take effect by the end of this year or early next year.
Governor Sanwo-Olu had advocated for a shift from the traditional yearly rental model, deeming it inadequate to address the housing challenges in a high-demand and expensive property market. He proposed a monthly rental system, emphasizing its affordability for low- and middle-income earners, who often face financial strain with yearly rent obligations.
The governor has been actively involved in developing rental policies to accommodate residents not participating in the state’s homeownership scheme. He highlighted the success of the existing rent-to-own program, with a low down payment and a reasonable interest rate over ten years. The then Minister of Works and Housing, Babatunde Fashola, supported Sanwo-Olu’s stance, stressing that the shift from yearly to monthly rentals would help bridge the affordability gap for low-income earners, thereby promoting housing equality.
