- Monthly rent Implementation timeline: End of 2024 or early 2025.
- Initial rollout: Public sector to test feasibility.
- Funding: ₦5 billion allocated for the scheme remains untouched.
- Rent calculation: Potentially linked to tenants’ earnings (details yet to be confirmed).
CEM REPORT, REAL EASTATE | Lagos State residents can expect a major shift in the housing market as the monthly rent scheme, initially announced in 2021, is finally set to be implemented by the end of 2024 or early 2025.
This news comes from a recent press briefing by Barakat Odunuga-Bakare, the Special Adviser to the Lagos State Governor on Housing.
She explained that the scheme will be piloted within the public sector first, where income verification is easier. Once its effectiveness is established, it will be rolled out to the private sector. This pilot program aims to assess the scheme’s effectiveness in a controlled environment before a wider rollout to the private sector.
“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,” stated Odunuga-Bakare.
Governor Babajide Sanwo-Olu has long advocated for a monthly rent system, citing the current practice of paying a year’s rent upfront as a significant financial burden, especially for low- and middle-income earners.
Odunuga-Bakare confirmed that the ₦5 billion allocated for the scheme remains available and untouched. She also acknowledged the initial delay in implementing the scheme, attributing it to ongoing refinements: “The fact that the scheme is slow to take off shows that the Lagos State Government is still trying to perfect one thing or the other.”
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Monthly Rent: A Global Practice
The monthly rent scheme aligns with international standards, as Odunuga-Bakare pointed out: “We all see what is being done in other climes, rents are collected monthly.” This shift aims to bring Lagos’ rental market in line with prevalent practices around the world.
Concerns have been raised about potential challenges in the private sector, where income verification might be more complex. Odunuga-Bakare assured residents that the government is addressing these concerns and working on solutions.
The monthly rent scheme complements the existing rent-to-own program offered by the Lagos State Government, providing residents with diverse housing options.
Looking Ahead:
The proposed monthly rental scheme is a significant step towards a more affordable housing market in Lagos. By easing the financial burden of upfront rent payments, the scheme has the potential to improve the lives of many residents.
However, it is important to note that the success of the scheme will depend on its effective implementation and addressing concerns from both tenants and landlords.
Residents of Lagos should closely monitor developments related to the scheme and stay informed about the specific regulations and procedures once they are announced.
