By John Umeh
In a bold move to ease the financial pressure on tenants, the Lagos State Government has announced plans to phase out the current system of annual rent payments in favour of a more flexible and tenant-friendly monthly payment structure. The policy, unveiled by Governor Babajide Sanwo-Olu during a recent housing stakeholders’ meeting in Ikeja, aims to reform rental practices in Nigeria’s most populous city and address the persistent housing affordability crisis.
For decades, tenants in Lagos have been compelled to pay rent for a year or more upfront — a practice that has placed considerable financial strain on low- and middle-income earners. The new policy, according to the Governor, is designed to reduce this burden and promote a fairer and more sustainable rental market.
“Rent payment should not be a source of hardship for our people,” Governor Sanwo-Olu said. “It is time we shifted to a system that protects tenants, empowers landlords, and ensures a more equitable housing environment. This monthly rent initiative is a step in that direction.”
The governor explained that the state would partner with property developers, private landlords, and financial institutions to facilitate a seamless transition. Under the proposed plan, tenants will be allowed to pay rent on a monthly basis, while landlords are guaranteed timely payments through a government-backed rental trust scheme. This trust is expected to serve as an intermediary, ensuring both parties’ interests are protected.
The monthly rent system will be implemented in phases, starting with government-owned housing estates and selected private sector collaborations. Additionally, a Rent Enforcement and Mediation Department will be established under the Lagos State Real Estate Regulatory Authority (LASRERA) to resolve disputes swiftly and ensure compliance with the new directive.
Industry experts have hailed the initiative as a potential game-changer in Lagos’ housing landscape. According to Mr. Gbenga Ashiru, a property consultant, the policy “reflects global best practices and shows the government’s willingness to adapt to the realities of its citizens.” He added that the upfront rent model had discouraged many young Nigerians from living independently or relocating for work opportunities due to the high entry cost.
The announcement has been met with widespread support from tenants and civil society groups who have long campaigned for rental reform. Many tenants see this as a long-overdue relief, particularly in a city where average annual rents can range from ₦300,000 to ₦2 million, depending on the location and housing type.
Mrs. Funke Ajayi, a civil servant residing in the Agege area, said, “I have been struggling to pay a year’s rent at once. If this policy truly takes off, it will reduce the financial stress on many families. Monthly rent makes it easier for us to plan our finances.”
However, some landlords have expressed reservations about the policy, citing fears of default and increased administrative complexities. In response, the state government has promised to offer guarantees and insurance schemes to protect landlords from potential losses. The government is also exploring incentives such as tax breaks and access to low-interest loans for compliant landlords.
The Lagos State Commissioner for Housing, Moruf Akinderu-Fatai, emphasized that the policy is not intended to undermine property owners but to balance the scales. “Our objective is to create a win-win environment where landlords receive regular income while tenants are not crushed by unrealistic demands. Everyone deserves decent shelter without being pushed into poverty,” he stated.
Beyond the rental reforms, the Lagos government also reiterated its commitment to boosting housing supply through ongoing construction of affordable housing units across the state. Initiatives like the LagosHOMS project and public-private partnerships are aimed at bridging the state’s housing deficit, which currently stands at over 3 million units.
While challenges remain in the full implementation of the monthly rent policy, the government’s proactive approach signals a significant shift in Nigeria’s housing discourse. If successful, Lagos could become a model for other states grappling with similar housing issues.
As the city prepares to roll out pilot programs and fine-tune policy details, stakeholders are watching closely. The success of this reform could usher in a new era of rental fairness, ease urban migration barriers, and stimulate growth in the real estate sector — all while giving tenants long-overdue breathing space.
