• Warn landlord against advance rent payment collection
• Seek creation of industrial clusters in geopolitical zones
Gboyega Akinsanmi
The federal government and all states of the federation have adopted rent-to-own schemes as an alternative funding strategy to bridge the country’s 17 million housing deficits.
The governments have also warned landlords and property owners against the exploitative practice of collecting advance rent from tenants in excess of one year, directing all state governments to enact law to criminalise such practice.
These decisions were contained in a six-page report of the 10th Meeting of the National Council on Lands, Housing and Urban Development held in Lagos between October 18 and 21, 2021.
The council comprises the federal government, 36 states of the federal government and the Federal Capital Development Authority (FCDA) under the chairmanship of the Minister of Works and Housing, Mr. Babatunde Fashola.
Among others, the meeting was attended by Lagos State Governor, Mr. Babajide Sanwo-Olu; Chairman, Senate Committee on Housing, Senator Sam Egwu; Chairman, House of Representatives Committee on Housing and Habitat, Mr. Mustapha Dawaki; and all the commissioners of Lands, Housing and Urban Development from all states of the federation.
As shown in its report, the council agreed that the governments at all levels should enact laws to cater for rent-to-own schemes as alternative payment options for home ownership which has proven to be comparatively less expensive.
It also directed all landlords and property owners “to adopt a maximum of one-year advance rent payment or less as against the yearly upfront payment with respect to middle- and working-class residential houses to reduce the burden on tenants and improve housing accessibility and affordability for Nigerians.”
In specific terms, the council directed all states of the federation to enable legislation to end the exploitative practice of collecting advance rent payment from tenants in excess of one year upfront.
It further agreed that the agency fees charged across board by professionals and agents for the rent of properties “shall not exceed a maximum fee to be paid by the person who employs the professional or the agent subject to what each State will legislate.”
It directed all governments and developers to provide firefighting infrastructure such as fire service access, water for fire-fighting and emergency communication centers as part of strategies to mitigate the impact of fire disasters.
The council agreed that the federal government should as a matter of urgency establish the National Urban and Regional Planning Commission, which was proposed to serve as a national umbrella for the formulation of national policies as well as preparation of operative development plans for the country in collaboration with the states of the federation as stipulated in the Nigerian Urban and Regional Planning Act (1992, No. 88).
It mandated the federal government “to drive a special urban planning status for Lagos State to engender consideration for special support in the focal areas not limited to infrastructure development, urban regeneration, massive social housing, integrated transport system in view of the state population density, dynamics, indices and influx.”
It further challenged the federal government “to facilitate, encourage and support interstate collaboration for effective integrated fiscal planning and urban development such as was envisaged with the Lagos-Ogun Development Commission.”
The stakeholders agreed at the meeting that payment of compensation “is the responsibility of the state government. The federal government cannot pay compensation on issues it has no control over unless it is also part of the conditions for the allocation of lands by the State.
“Lands to be negotiated from the state governments for federal government’s projects development be situated in strategic locations/areas accessible and marketable with potentials for faster development in order to ensure value for money.
“In line with the provisions of the 2012 National Urban Development Policy (NUDP, 2012), an Inter-Government Committee be set up among the Federal Ministry of Works & Housing and State Governments to identify and activate strategic steps for closer partnership for urban renewal and slum upgrading activities across Nigeria such that projects are more smoothly delivered and benefiting communities are better involved.”
The council canvassed the establishment in the public institutions the enforcement of National Public Building Maintenance Policy frameworks to support federal government’s efforts in the development of maintenance of infrastructural assets sector.
