The Lagos State Government’s proposed monthly rental scheme, aimed at alleviating the burden of yearly rent payments for residents, has faced a significant three-year delay.
Announced in December 2021 with an allocated N5 billion budget, the initiative has yet to be implemented across the state.
At the second Lagos Real Estate MarketPlace Conference in December 2021, Toke Benson-Awoyinka, the Special Adviser to Governor Babajide Sanwo-Olu on Housing, assured residents that the scheme would soon begin, easing the financial strain of yearly rent.
“Tenants can therefore use the yearly payment for other forms of investments or for payment of school fees as the burden of payment of yearly rent is taken away from them completely,” she stated.
Despite promises, including statements from the Lagos Commissioner for Information and Strategy, Gbenga Omotoso, who confirmed that all arrangements were in place in 2022, the scheme has yet to materialize. “It’s very simple; the idea is to make everything easy for people,” Omotoso explained, emphasizing the need for a harmonious relationship between tenants and landlords.
In 2024, Barakat Odunuga-Bakare, the Special Adviser on Housing, stated that the scheme would likely be enforced by the end of 2024 or early 2025, beginning with the public sector. “Once we see that it works in the public sector, we can now push it out to the private sector,” she added.
Governor Sanwo-Olu, who had long advocated for monthly rent payments to make housing more affordable for low- and middle-income earners, had described the annual rent model as inadequate.
However, the delayed launch has raised concerns, with some experts pointing out the challenges of transitioning to such a payment system in the current market.
While the scheme aims to ease the financial burden, issues like potential rent hikes and administrative challenges for landlords remain obstacles.
Nevertheless, the Lagos government continues to explore solutions to tackle housing affordability and offer more accessible options for residents.
The anticipated launch of this scheme highlights Lagos’ commitment to finding innovative solutions to the housing crisis, but the extended delays raise questions about the effectiveness of such initiatives in the face of real estate challenges.