FUNKE ADETUTU writes that with skyrocketing accommodation cost, the rent system in Lagos works in contradistinction with the dictates of the global financial downturn which has forced down housing costs in other countries
Adekoya Street, one of the busy lanes at Oshodi in Lagos, is mostly known for the shady deals that a good number of its inhabitants engage in. Many residents of this neighbourhood are low-income earners, hence the housing structures on the street are bungalows built in the face-me-I-face-you style, consisting of one-room apartments. It is in one of such apartments that Baba Oyeniyi, as he is fondly called by residents, has sought refuge for the past 20 years. But that was until one cold morning last April when his landlord summarily served him a quit notice. Since then, he has been running helter-skelter for another accommodation, but several factors have made his attempts unsuccessful.
Oyeniyi has been jobless for about two years, for which reason his family depends solely on the meagre income his wife makes from selling roasted corn and bread in front of their home.
“I don’t know what to do. I have been on this for the past one year,” he explains while his eyes well up in tears. “My wife and I tried to get another apartment but the rent was too expensive for us. We cannot afford to pay because the estate agent demanded for two years. Where do I get that? That was exclusive of the agreement fee.”
Baba Oyeniyi is just one of many Lagosians who contend with the problem of rent advance payment of two years or more that most landlords and estate agents ask for. For this reason, most people in dire need of a place to lay their heads in the Lagos metropolis find this an impossible task; while others who wish to change apartments are unable to do so as a result of soaring rent rates.
Eric Amole-Adams, a tenant on Ogundana Street, Ikeja, falls into the latter category. Before the New Year, he received an increment notice from his landlord stating that rent for his three-bedroom apartment had been increased from N300, 000 to N400, 000, and he was expected to pay two years. “It’s uncalled for that the rent should be increased just like that. I don’t understand why this has to happen when the year is just starting,” he laments with a sigh. “How do I get another accommodation if I plan to do so? I will also be asked to pay for two years’ exclusive of agreement and other things. It’s so unfair.”
While tenants see no need for the incessant increase in house rent, some landlords insist that they have every right to do so. They affirm that the bureaucratic process involved in putting up a structure in Lagos is enough to discourage anyone from building a house. Hence the possibility of encouraging private developers to alleviate the housing needs of Lagosians may seem impossible.
“If a developer wants to register his title,” explains Banjoko Azeez, a private developer, “he will probably spend more than the cost of the land for him to get the C of O. If I want to mortgage my property and I want to register it or obtain Bill of Assignment, I will go through hell. I will go through a lot of tax payment. All these do not encourage people like me to invest in housing.”
As far as Gbenga Osho a house owner at Gbagada is concerned, the challenges of infrastructure is a major issue for landlords, which have led to the increase in rent and some people believe that this will not make the rent advancement act realistic.
“The developer goes through the hassle of buying the land at a very exorbitant price, begging government and bribing his way through to get the C of O without which you cannot do anything on the land. All this makes the realisation of ‘housing for all’ unrealistic. Now, the developer will also be the supplier of electricity because if you are able to get electricity within two months, then you thank your stars. And if there is no electricity, he will be the one to provide the generator, water, roads,” he explains in a tone laden with frustration.
For most estate surveyors, the demand and supply forces playing out in the open market compound the housing problem in Lagos, as most landlords are confident that if a tenant refuses an apartment there are thousands of people waiting to move in. “The demand for housing is like a million,” says Elijah Olapade, managing consultant, Elijah Olapade and Company, an estate surveyor outfit. “Supply is like a hundred whether you make rules or not. People have to beg to stay in a house. That is where for me the issue of conscience on the part of government comes in. The state government has to make adequate provision to impact positively on the people.”
Olapade also explains that the move made by the Lagos State Government sometime last year to completely erase rent advance payment may be realisable if government can totally eradicate the bureaucratic process involved in title registration.
“If the government wants to put in place a law that will compel landlords to collect one-month rent, it is possible; but certain parameters, certain foundational work have to be done by the government. The Lagos State government should let the residents of the state know whether it is sincere; sincere in the sense that the activities of the Lagos State Development Property Corporation (LSDPC) are purely commercial.”
The LSDPC has been accused of developing houses for the high-income earners instead of building low-income housing for the less-privileged. Therefore, it seems the problem of housing in the state is far from being resolved.
“Most of their property investments around Lekki are mostly commercial property. The Lagos State government itself is producing for the highest bidder who will now develop the housing and sublet the houses to the poor. The issue of the Land Use Act of 1978 is also pushed to the extreme,” remarks Bamidele Alade, an estate surveyor.
As if that is not bad enough, Olapade opines that the state ministry of housing has limited funds at its disposal, and the little it has is actually geared towards developing housing schemes for high-income earners and other commercial users.
“People think that the fact that you are involved in high or low housing that will benefit low-income earners means you will not profit. But that is not true. It is very possible to make profit. That perception boils down to attitude; the uncaring attitude and the inability to truly serve the people who elected the leaders. I’m of the opinion that the Lagos State Ministry of Housing is the only organ that is involved in developing houses for low-income earners. The problem of the state ministry of housing is enormous as they only have about 10 percent capacity with which to develop low-income housing. Hence, the impact that they have is very little,” he says.
With a housing policy that has become obsolete in the reality of pressing housing needs of Lagos residents in the new millennium, Olapade explains that the content of the 1991 Housing Policy will not make the ‘housing for all’ project possible. “Unfortunately, the best housing national policy we had was in 1991; and that was the only one during the Babangida regime. There were other proposals in 2002, 2004, 2006 but they were never implemented. The legislature never approved them. We can simply say that it is the 1991 national housing policy that we are still using till date. Now if there is no good policy in place, how can government claim that it is doing something good about housing the populace? I brought that in because in that document of 1991, the government says that it will not be involved in the direct supply of housing because it has not achieved much in the previous provision of housing,” Olapade adds.
Although there have been several attempts by past governments to alleviate the housing needs of Lagosians, the incessant increase in population rate has thwarted such efforts. For instance, government wanted to supply 202, 000 houses during the Shehu Shagari regime. Before then, there was an effort to supply 59, 000 houses, explains Bamidele Oloja, a landlord at Bariga. But he adds that the level of achievement was not more than 15 percent. “Government realised that it could not achieve much and left it for the private sector. There was what they called ‘private/public’ partnership. And in that document they also said that the government would concern itself with supplying site services; that, is they will open up lands, put all the infrastructure like water, electricity, drainage among others there. But as of today, whether on the Federal Government or State level, this promise has not been fulfilled,” he declares.
Meanwhile, residents of low-income neighbourhoods are not the only ones affected by the incessant increase in rent rate. In the past few months, some occupants of duplexes at Oniru Millennium Estate, one of the posh neighbourhoods on Victoria Island, have been relocating to less expensive areas. As a homeowner in the estate, Gbadebo Ayanwuyi explains that a terrace duplex on a street adjacent to his is being priced for N5.5 million per annum. “The value of properties in this estate has increased greatly. A duplex goes for N5.5 million, and the estate agent is demanding for two years plus a commission of 10 percent and an agreement fee of 10 percent. There is also a security fee of N5.5 million which is negotiable,” he says. Currently, there are two duplexes in the estate with a ‘To Let’ sign affixed to their gates.
Theodora Kio-Lawson, a legal practitioner, reveals that the actual percentage of tenement rate increase approved by the state government is 50 percent, but some landlords have taken laws into their hands with the ridiculous increase of about 100 percent or more. “There are serious laws in favour of tenants in the state which the tenants themselves are unaware of. Therefore, it is important that they are educated on the laws backing them as tenants. They cannot afford to be subject to inhuman treatment and reckless tenement rate increase by any landlord,” she contends.
However, all efforts to get the state ministry of housing’s side of the story have proved unsuccessful, as the department observes that its primary concern is to put up structures in designated parts of the state.
Regardless, Olubodun Ayeni and Oluwaseun Adewale, in their paper titled: “Evaluation of Tenement Rate Administration Using the GIS Tools,” say various levels of government handle a colossal amount of data which are needed to perform critical tasks in state administration for equity and good governance in a most efficient manner. However, this may not be realisable where available data cannot be matched with necessary management tools to create desired results; hence the offer that The Geographical Information System (GIS) is the right method which government can employ to get appropriate data for the provision of efficient housing for Lagosians.
“With the increasing functions of Local Government authorities, for instance, it is required to operate with optimal efficiency to be able to satisfy the ever increasing needs of its residents. There is therefore the need for a management system that will bring about desired effectiveness in the administration. GIS already provides the required data management capabilities for land administration,” they maintain.
Adekoya Street, one of the busy lanes at Oshodi in Lagos, is mostly known for the shady deals that a good number of its inhabitants engage in. Many residents of this neighbourhood are low-income earners, hence the housing structures on the street are bungalows built in the face-me-I-face-you style, consisting of one-room apartments. It is in one of such apartments that Baba Oyeniyi, as he is fondly called by residents, has sought refuge for the past 20 years. But that was until one cold morning last April when his landlord summarily served him a quit notice. Since then, he has been running helter-skelter for another accommodation, but several factors have made his attempts unsuccessful.
Oyeniyi has been jobless for about two years, for which reason his family depends solely on the meagre income his wife makes from selling roasted corn and bread in front of their home.
“I don’t know what to do. I have been on this for the past one year,” he explains while his eyes well up in tears. “My wife and I tried to get another apartment but the rent was too expensive for us. We cannot afford to pay because the estate agent demanded for two years. Where do I get that? That was exclusive of the agreement fee.”
Baba Oyeniyi is just one of many Lagosians who contend with the problem of rent advance payment of two years or more that most landlords and estate agents ask for. For this reason, most people in dire need of a place to lay their heads in the Lagos metropolis find this an impossible task; while others who wish to change apartments are unable to do so as a result of soaring rent rates.
Eric Amole-Adams, a tenant on Ogundana Street, Ikeja, falls into the latter category. Before the New Year, he received an increment notice from his landlord stating that rent for his three-bedroom apartment had been increased from N300, 000 to N400, 000, and he was expected to pay two years. “It’s uncalled for that the rent should be increased just like that. I don’t understand why this has to happen when the year is just starting,” he laments with a sigh. “How do I get another accommodation if I plan to do so? I will also be asked to pay for two years’ exclusive of agreement and other things. It’s so unfair.”
While tenants see no need for the incessant increase in house rent, some landlords insist that they have every right to do so. They affirm that the bureaucratic process involved in putting up a structure in Lagos is enough to discourage anyone from building a house. Hence the possibility of encouraging private developers to alleviate the housing needs of Lagosians may seem impossible.
“If a developer wants to register his title,” explains Banjoko Azeez, a private developer, “he will probably spend more than the cost of the land for him to get the C of O. If I want to mortgage my property and I want to register it or obtain Bill of Assignment, I will go through hell. I will go through a lot of tax payment. All these do not encourage people like me to invest in housing.”
As far as Gbenga Osho a house owner at Gbagada is concerned, the challenges of infrastructure is a major issue for landlords, which have led to the increase in rent and some people believe that this will not make the rent advancement act realistic.
“The developer goes through the hassle of buying the land at a very exorbitant price, begging government and bribing his way through to get the C of O without which you cannot do anything on the land. All this makes the realisation of ‘housing for all’ unrealistic. Now, the developer will also be the supplier of electricity because if you are able to get electricity within two months, then you thank your stars. And if there is no electricity, he will be the one to provide the generator, water, roads,” he explains in a tone laden with frustration.
For most estate surveyors, the demand and supply forces playing out in the open market compound the housing problem in Lagos, as most landlords are confident that if a tenant refuses an apartment there are thousands of people waiting to move in. “The demand for housing is like a million,” says Elijah Olapade, managing consultant, Elijah Olapade and Company, an estate surveyor outfit. “Supply is like a hundred whether you make rules or not. People have to beg to stay in a house. That is where for me the issue of conscience on the part of government comes in. The state government has to make adequate provision to impact positively on the people.”
Olapade also explains that the move made by the Lagos State Government sometime last year to completely erase rent advance payment may be realisable if government can totally eradicate the bureaucratic process involved in title registration.
“If the government wants to put in place a law that will compel landlords to collect one-month rent, it is possible; but certain parameters, certain foundational work have to be done by the government. The Lagos State government should let the residents of the state know whether it is sincere; sincere in the sense that the activities of the Lagos State Development Property Corporation (LSDPC) are purely commercial.”
The LSDPC has been accused of developing houses for the high-income earners instead of building low-income housing for the less-privileged. Therefore, it seems the problem of housing in the state is far from being resolved.
“Most of their property investments around Lekki are mostly commercial property. The Lagos State government itself is producing for the highest bidder who will now develop the housing and sublet the houses to the poor. The issue of the Land Use Act of 1978 is also pushed to the extreme,” remarks Bamidele Alade, an estate surveyor.
As if that is not bad enough, Olapade opines that the state ministry of housing has limited funds at its disposal, and the little it has is actually geared towards developing housing schemes for high-income earners and other commercial users.
“People think that the fact that you are involved in high or low housing that will benefit low-income earners means you will not profit. But that is not true. It is very possible to make profit. That perception boils down to attitude; the uncaring attitude and the inability to truly serve the people who elected the leaders. I’m of the opinion that the Lagos State Ministry of Housing is the only organ that is involved in developing houses for low-income earners. The problem of the state ministry of housing is enormous as they only have about 10 percent capacity with which to develop low-income housing. Hence, the impact that they have is very little,” he says.
With a housing policy that has become obsolete in the reality of pressing housing needs of Lagos residents in the new millennium, Olapade explains that the content of the 1991 Housing Policy will not make the ‘housing for all’ project possible. “Unfortunately, the best housing national policy we had was in 1991; and that was the only one during the Babangida regime. There were other proposals in 2002, 2004, 2006 but they were never implemented. The legislature never approved them. We can simply say that it is the 1991 national housing policy that we are still using till date. Now if there is no good policy in place, how can government claim that it is doing something good about housing the populace? I brought that in because in that document of 1991, the government says that it will not be involved in the direct supply of housing because it has not achieved much in the previous provision of housing,” Olapade adds.
Although there have been several attempts by past governments to alleviate the housing needs of Lagosians, the incessant increase in population rate has thwarted such efforts. For instance, government wanted to supply 202, 000 houses during the Shehu Shagari regime. Before then, there was an effort to supply 59, 000 houses, explains Bamidele Oloja, a landlord at Bariga. But he adds that the level of achievement was not more than 15 percent. “Government realised that it could not achieve much and left it for the private sector. There was what they called ‘private/public’ partnership. And in that document they also said that the government would concern itself with supplying site services; that, is they will open up lands, put all the infrastructure like water, electricity, drainage among others there. But as of today, whether on the Federal Government or State level, this promise has not been fulfilled,” he declares.
Meanwhile, residents of low-income neighbourhoods are not the only ones affected by the incessant increase in rent rate. In the past few months, some occupants of duplexes at Oniru Millennium Estate, one of the posh neighbourhoods on Victoria Island, have been relocating to less expensive areas. As a homeowner in the estate, Gbadebo Ayanwuyi explains that a terrace duplex on a street adjacent to his is being priced for N5.5 million per annum. “The value of properties in this estate has increased greatly. A duplex goes for N5.5 million, and the estate agent is demanding for two years plus a commission of 10 percent and an agreement fee of 10 percent. There is also a security fee of N5.5 million which is negotiable,” he says. Currently, there are two duplexes in the estate with a ‘To Let’ sign affixed to their gates.
Theodora Kio-Lawson, a legal practitioner, reveals that the actual percentage of tenement rate increase approved by the state government is 50 percent, but some landlords have taken laws into their hands with the ridiculous increase of about 100 percent or more. “There are serious laws in favour of tenants in the state which the tenants themselves are unaware of. Therefore, it is important that they are educated on the laws backing them as tenants. They cannot afford to be subject to inhuman treatment and reckless tenement rate increase by any landlord,” she contends.
However, all efforts to get the state ministry of housing’s side of the story have proved unsuccessful, as the department observes that its primary concern is to put up structures in designated parts of the state.
Regardless, Olubodun Ayeni and Oluwaseun Adewale, in their paper titled: “Evaluation of Tenement Rate Administration Using the GIS Tools,” say various levels of government handle a colossal amount of data which are needed to perform critical tasks in state administration for equity and good governance in a most efficient manner. However, this may not be realisable where available data cannot be matched with necessary management tools to create desired results; hence the offer that The Geographical Information System (GIS) is the right method which government can employ to get appropriate data for the provision of efficient housing for Lagosians.
“With the increasing functions of Local Government authorities, for instance, it is required to operate with optimal efficiency to be able to satisfy the ever increasing needs of its residents. There is therefore the need for a management system that will bring about desired effectiveness in the administration. GIS already provides the required data management capabilities for land administration,” they maintain.
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