The Lagos State government has announced plans to build a digital rental platform designed to facilitate monthly rent payments for residents.
This 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.
Co-Ownership and Technical Partners
According to 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.
Investment and Development
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.
Background and Rationale
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 emphasized that affordable housing is a global issue, exacerbated by rising prices and rents.
Challenges and Measures
Akindeli-Fatai described Lagos as Nigeria’s urbanization epicenter, with a population growth rate of 3.34% 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.
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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.
Addressing the Rent Surge
A recent report by Nairametrics revealed that rents in Lagos State have surged by over 100% in the past four years, creating a significant financial strain on residents due to stagnant or only slightly increased incomes. The Lagos State Government has consistently condemned arbitrary rent increases and urged residents to speak out against such practices.
Regulatory Measures
To address these challenges, the state government has established a new agency to regulate and monitor both tenants and landlords, ensuring fairness in rental practices. The government emphasized the importance of enforcing and challenging existing laws to prevent their neglect.