Ambode Mulls ‘Rent And Own’ Policy In Lagos State Housing Programme

9japroperty — Fri, 30 Oct 2015 09:00:24 +0000

Lagos State Governor Akinwumi Ambode on Friday said the state would consider adopting a ‘rent and own’ policy in resolving its housing deficiency.
In a chat with media executives at his office in Alausa, Ikeja, Ambode acknowledged that it was not easy for a winner of a three-bedroom flat, under the state government’s housing scheme, to make an initial payment of about N5 million– half the cost– before spreading out the balance through monthly payments.
He noted that it was unnecessary for a bachelor or spinster to own a three-bedroom flat, stressing that it was better for those in this category to get studio apartments and upgrade to more spacious accommodations when they get married and started having children.
He appreciated the solid foundation already laid by his predecessors in office in the state, and called for suggestions and constructive criticism by all residents, including the media, so as to build on what was on ground.
The News Agency of Nigeria (NAN) quotes Ambode as noting that the multi-modal approach already in place to tackle transportation problems in the state would be improved upon.
Stressing that his mantra would be ‘continuity with improvement’, the governor said that the involvement of the private sector in solving Lagos State’s transportation problems would be intensified.
He said that though about 230 private boat operators were transporting about a million people daily through the waterways, more were welcome.
The governor said that as more means of mass transportation came on board, the more than 600,000 private car owners and 120,000 motorcycles that were being put on the road in the state on daily basis would reduce in number.
On dwindling federal allocation, Ambode said that the state would enlarge its internally generated revenue drive, without bringing hardship to residents.
According to the governor, less than half of the taxable adults in the state currently meet their civic obligations and it was time more were made to key in without increasing taxation.
Ambode also said that more effort would be put in place to promote tourism in the state and use this to provide jobs for the teeming unemployed, adding that a summit would soon be convened to address the critical issues in the sector.
The governor also said that with a view to making the state the hub of investments in the West African sub-region, modalities were being put in place to woo more genuine investors from far and near.
Reiterating that his focus would be to shift development to the rural areas and thereby arrest urban drift, Ambode noted that the provision of electricity, potable water and other social amenities would receive priority attention. (NAN)

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Tenancy law, multiple taxation fingered for high house rent in Lagos

9japroperty — Tue, 30 Jun 2015 11:17:43 +0000

Arguably, Lagos State, Nigeria’s commercial capital, is the country’s most active and most expensive rental market where tenants at its highbrow areas pay as much as N10 million and N15 million per annum for three bedroom apartment while similar apartments in the low-mid income areas go for between N250,000 and N2.5 million.

Apart from high demand and low supply, there are other factors responsible for this high rent and, according to Edward Akinlade, Group MD, Suru Group Limited—a property investment and development firm—the Lagos Tenancy Law and multiple taxation are driving up house rents in Lagos.

Recognising that Lagos is home to over 21 million people, with housing posing a major challenge to the huge population, the state government in August 2011 enacted the Tenancy Law which prescribes one year rent for a new tenant and six months for a sitting tenant.

Akinlade explained to BusinessDay that the single year rent payment law has discouraged investment in homes for rent and has pushed rent to new level, adding that, presently, landlords collect two years’ rent for one year in many locations in Lagos.

He explained further that developers, through multiple taxation, were made to pay for land, planning and approval, environment, council, taxes and Omoonile, stressing that the popular saying is that “even Fashola pays Omoonile”.

“Access to land through government allocation is a battleground for money bags in Lagos. Planning approval takes forever, yet the government says it will take one to two months, “not on your nelly baby oze”, he said.

Akinlade is not also comfortable with Federal Government’s housing policies, noting that access to credit from banks was near-impossible for developers and “if you are lucky to receive loan offers, you must find over 150 percent security for the bank to hold; 25 percent interest rate on bank loans is a killer for any developer’s business plan”.

He listed other reasons for the high rent to include sale of Federal Government’s land in Lagos, high exchange rate to import building material, highly priced local building material, high fuel costs showing itself through transportation costs and generators, high labour costs, and inadequate design to maximise land space.

Akinlade pointed out that Lagos has seen 30 years of mass housing gap, explaining that since after Lateef Jakande whole governed Lagos from 1979 to 1983, there has been no mass housing for rent.

“Jakande was the last governor of the state that successfully implemented and delivered mass housing policies for rent. For 30 years, successive governments ignored this need of Lagos residents. Jakande also commissioned a report on homes shortage in Nigeria, as at 2010, estimated at 16 million and projected to reach 20 million by 2020”, he recalled.

Historically, Akinlade also recalled that demand for housing for rent started when the Aworis admitted the visiting Prince Ado and his cohorts from the Benin Kingdom into their fold and the group’s final settlement in Eko with the assistance of some Benin chiefs which include Eletu Odibo, Obanikoro and others, resulting in market activities and gathering of traders needing homes to rent in modern day Eko.

CHUKA UROKO

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Ambode Mulls ‘Rent And Own’ Policy In Lagos State Housing Programme

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