The dream of Nigerians of paying property rent on a monthly basis may soon be realised based on the latest resolution between the federal and state governments on the issue.
At the recently concluded sixth meeting of the National Council on Lands, Housing, and Urban Development, the issue of monthly payment of rent was discussed.
At the meeting of permanent secretaries during the council, senior government officials from the 36 states and Federal Capital Territory, as well as those from the Federal Ministry of Power, Works, and Housing (Works/Housing sector) agreed to enact a law that would allow monthly payment of rent across the country.
In a 52-page report on the meeting of permanent secretaries at the sixth NCLHUD, which was obtained by Daily Sun from the FMPWH in Abuja, the officials also resolved that the law would be enforced, as they noted that its enforcement would enhance access to housing finance.
The Minister of Power, Works, and Housing, Babatunde Fashola, recently charged property developers to reduce their rents and the value of properties considering the economic hardship across the country.
He advised them to look for ways of solving the problem of high house rents and advance payments, particularly in major cities across the country.
Fashola had said, “let me just ask you a question since everybody is here. Is there nothing we can do in this country about this practice of demanding rent for two, three years in advance from people who get their salaries monthly in arrears? Is there nothing that can be done? We can’t continue like this.”
The Minister, insisted that operators in the sector must question the practice, stressing that the high rents being charged by developers and landlords could be contributing to the increase in the cost of other commodities.
“We must first of all question the practice, look at its strengths and weaknesses and its damage to the entire economy. For instance, as a Minister, my salary is ₦900,000; so, when you ask me to go and bring rent for two years in advance that I have not earned, and I actually bring it, shouldn’t you start worrying?
“So, when you suddenly see that the prices of water, food, etc., begin to spike, are we really gaining? Because one way or the other, I’m going to get back what you collected from me. It’s a matter of conscience. Can you pay for a taxi before you board it?” he queried.
Addressing the issue, the permanent secretaries from the relevant agencies in the federal and state governments resolved at the meeting to produce a law that would allow the monthly payment of rent.
The FMPWH submitted a Memorandum of Understanding (MoU) on the Provision of Adequate and Affordable Housing at the meeting in which the council noted that the “enactment of the law would allow monthly rental payments and its enforcement would enhance access to housing finance.”
They also upheld that the rent-to-own scheme of the Federal Mortgage Bank of Nigeria (FMBN), if included in the housing finance policy, would address the problem of poor access to housing finance.
They recommended that all tiers of government should improve on intervention strategies to provide affordable housing, as well as an enabling environment for active participation of the private sector in housing delivery.
The permanent secretaries urged the federal and state governments to consider all income groups in their housing delivery programmes, and to encourage the development of secondary mortgage market in order to strengthen mortgage refinancing.
Source: Daily Sun
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