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Lagos to implement monthly rental policy by 2025

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The Special Adviser to the Lagos State Governor on Housing, Barakat Odunuga-Bakare, announced the government’s commitment to enforcing a monthly rental scheme in the state.

In a recent press briefing held at the Lagos State Real Estate Regulatory Authority in Ikeja, Odunuga-Bakare revealed that the policy would be rolled out before the end of 2024 or early next year.

During the briefing, Odunuga-Bakare explained, “We all see what is being done in other climes, rents are collected monthly. Hence, we are looking and hoping that before the end of the year, or by early next year, we will be able to implement the policy of monthly rental. Also, the rental would be charged according to tenants’ earnings.”

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She further detailed the government’s strategy, stating that a trial run would be initiated within the public sector to assess its feasibility. “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, and once we see that it works in the public sector, we can now push it out to the private sector.”

Odunuga-Bakare reassured that the allocated N5 billion for the monthly rental scheme remained untouched, emphasizing that the slow implementation was a result of the government’s dedication to perfecting the necessary elements of the initiative.

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“The last administration that initiated the monthly rental scheme was coming to an end when the scheme was to be introduced. Now, we have a new administration, and the governor wants the scheme to come into effect by the end of this year or early next year,” she noted.

The push for a monthly rental system in Lagos began in 2021 when Governor Babajide Sanwo-Olu advocated for a more contemporary approach to address housing sector realities. He emphasized the need for a system that would be affordable for low- and middle-income earners, moving away from the traditional yearly rent obligation.

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Governor Sanwo-Olu had previously stated, “In Lagos, we operate a very robust rent-to-own program of five per cent down payment and six per cent simple interest rate payable over 10 years. We are working on another product, which is a purely rental system, where residents will pay monthly.”

Former Minister of Works and Housing, Babatunde Fashola, supported the governor’s position, highlighting the inequality and affordab

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