Lagos to kickstart monthly rent scheme with N5 billion allocation.

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The Lagos State Government at the Lagos real estate marketplace conference and exhibition, on Wednesday, said it has put in place N5 billion to kickstart the monthly tenancy scheme in January 2022.

Speaking at the event, the state Commissioner for Finance, Rabiu Olowo made this known.


The two days event tagged ‘Lagos 21st Century Real Estate Investment Hub’ was organised by the Lagos State Real Estate Regulatory Authority (LASRERA).
According to the commissioner, the scheme was set up to support tenants and landlords regarding rent remittance. 

Olowo said the first set of beneficiaries will be drawn from the formal sector, the second set will be from the informal sector and others will follow accordingly. 

“Following a survey, we have been able to create a model that will be launched and known as the Lagos monthly rental policy,” the commissioner said. 

“The survey reveals that a large percentage of Lagos residents finds it difficult to pay their rent on yearly basis, hence the introduction of the initiative.

“You (stakeholders) have nothing to fear. You will get a better deal by joining the scheme.


“To start with, a N5 billion portfolio has been put in place to kick off the scheme. 
“We welcome more support from more financial institutions to raise the bar of the portfolio for the masses to enjoy from this policy.”

Also at the event, Special Adviser to the Lagos State Governor on housing, Toke Benson-Awoyinka, disclosed that the scheme is part of efforts to develop the real estate industry and to boost investors trust.

She also said the scheme is synonymous with the rent-to-own scheme which is already in operation in Lagos. 
Speaking on whether government have authority to dictate to landlords on how to receive rent payment from tenants she said
“Yes, there is a way we can dictate, because we have the tenancy law that has prescribes that you cannot collect more than one-year tenancy in some areas of Lagos state,” NAN quoted her as saying. 

“We also know that because of the credit system in Nigeria, we cannot really enforce that monthly tenancy but to create enabling environment for people to also subscribe to the scheme.


“We have put about five components together as a state government, modifying the policy and making it seamless and easily accessible by the citizens of the state.

“If pre-qualified, we know that the tenant can afford whatever rent she or he wants to pay. But if she or he is having difficulty putting big funds together, we refer them under this scheme to the financier.

“The financier also does the needful in terms of pre-qualification and gets to know who the landlord is.

“So, there are various components to this. We have the insurance, financier, the landlord, the tenant and the legal, apart from the administrative cost of the scheme.” 

She noted that there is a process for present tenants that would like to join the scheme.

“The scheme goes ahead to pay that yearly rent to the landlord but gives such a tenant an option of paying that rent on monthly basis after pre-qualification,” she added.

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