In a move aimed at providing relief to renters in Lagos State, the government has announced plans to implement a monthly rental policy by the end of this year or early next year. With approximately 80 percent of the state’s 20 million residents living in rented accommodation, the initiative is poised to significantly impact both individual households and the broader rental market.
Barakat Odunuga-Bakare, Special Adviser to Governor Babajide Sanwo-Olu on Housing, revealed the government’s intention to revisit the monthly rental policy, citing its alignment with global best practices. She emphasized that unlike the prevalent practice in Lagos and other Nigerian cities where tenants pay rents in advance, monthly rentals are common in many countries worldwide.
“We are keen on adopting this approach to rental payments, with rents being charged according to tenants’ earnings,” Odunuga-Bakare stated. She further highlighted the government’s plan to pilot the policy within the public sector initially to assess its effectiveness before extending it to the private sector.
The proposed monthly rental system responds to the rental crisis in Lagos, as acknowledged by Governor Sanwo-Olu in 2021. He emphasized the inadequacy of the current yearly rental model, particularly in high-demand and expensive urban areas, and advocated for a more affordable approach for low- and middle-income earners.
Despite the initial allocation of N5 billion towards the implementation of the monthly rent system, Odunuga-Bakare noted that the slow progress indicates the government’s commitment to ensuring a well-executed policy.
The forthcoming implementation of the monthly rental policy signifies a significant step towards addressing housing affordability and stability for renters in Lagos State.