Following preparation by the Lagos State Government to announce plans to build a digital rental platform designed to facilitate monthly rent payments for residents, an expert in the built environment has cautioned the authority, saying that the best way to launch such a program is to start with government’s housing estates or apartments.
The expert, Mr Olufemi Oyedele is of strong opinion that government should not control a house that is has no power over, especially with the status of the Nigerian housing law which does not discourage «completed-but-vacant» houses.
If the authority should go ahead with the plan, he predicted that most landlords would either allow their properties to be vacant after completion or do black market transactions.
“The best way to launch monthly rent payment is for government to have it’s own government rented apartments or “government housing”. Government cannot control a house that it doesn’t have power over, especially with the status of our housing law which does not discourage “completed-but-vacant” houses. Most landlords will either allow their properties to be vacant after completion or do black market transactions,” the built environment expert said.
Plan to launch the initiative was disclosed in a document titled “EKO Revenue Plus Summit,” themed “Unlocking New Revenue Streams for Lagos State,” where the state aims to generate N2.5 billion annually from an estimated 100,000 subscriptions.
Report said that the document, the digital platform, will be co-owned by the Lagos State government through agencies such as the Lagos State Ministry of Housing and other MDAs in the state serving as technical partners. The platform, named the Lagos Rent Payment Platform, will charge a 5% transaction fee on the estimated 100,000 transactions monthly, projected to yield N2.5 billion per year.
The state government plans to invest around N300 million in the development, operations, marketing, and promotion of the digital platform over the next 4 to 6 months. This investment is aimed at ensuring the platform’s successful launch and widespread adoption among Lagos residents.
The initiative follows a recent statement by the Commissioner for Housing, Mr. Moruf Akindeli-Fatai, who reiterated the government’s commitment to launching a monthly rental scheme. He highlighted that access to affordable financing is a significant challenge, particularly for low-income households in Lagos State. Akindeli-Fatai emphasised that affordable housing is a global issue, exacerbated by rising prices and rents.
Akindeli-Fatai described Lagos as Nigeria’s urbanization epicentre, with a population growth rate of 3.34 percent per annum, adding approximately 90 new residents every hour. The rapid population increase, combined with the state’s limited land area of 3,577 km², a third of which is covered by water, further restricts housing development.
The commissioner warned that homeowners charging exorbitant rents would face penalties, and the state government may withdraw allocations from those found culpable. Complaints from residents about high rental fees in various state housing schemes have prompted these stringent measures.
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