The Lagos State Governor, Mr. Babatunde Raji Fashola, on August 8, 2011 signed the Tenancy and Lagos Parks and Gardens Bill into Law. But six months after the law came into effect, Lagos residents have said the law has not helped them to secure better or cheaper accommodation as landlords and property developers are still engaged in the old habit of collecting more than one year rent.
Investigations revealed that before the passage of the Lagos State tenement bill, a two-room apartment at Shogunle, Mafoluku, Ojudu and other low income areas of the state went for between N120,000 and N150,000 per annum. However, sadly, since the enactment of the law, such apartments now go for between N220,000 and N250,000 per annum. And to add to the teeming residents plights, the landlords have increased the rent drastically since the Federal Government imposed a new price of N97 per litre of petrol in January.
For instance, a one-room apartment at the GRA, Ikeja area of the state was between N200,000 and N250,000 last year. But with effect from January 2012, it has increased to N300,000 per annum. Investigations also revealed that landlords and developers are collecting two or three years rent from house seekers while those who agree to accept the rent for a year have found other means of making extra money from their tenants through sundry charges.
Donald Eze, a spare parts dealer at Ladipo Market, narrated his plight while seeking accommodation in Lagos recently. He told The Eagle Onlune: “I gained my freedom September last year and I wanted to start life on my own. So I went into house hunting at Trinity area of the state. I thought that with the new law in the state prohibiting landlords from collecting two years rent, I would get a room easily. But I was shocked that all the agents I approached said the landlords are demanding for two years rent and other sundry charges. I was told that a room and parlour self contained apartment will cost me N250,000 per annum and I had to pay two years rent. By the time they added the sundry charges, I was expected to pay N650,000. My plea to pay one and half years rent fell on deaf ears and that was how I have continued squatting with my friends.”
Investigations further revealed that residents are employing various tricks to beat shylock landlords by engaging in multiple tenancies. Chukwuma Boniface, a textile trader at the Tejusho Market, explained how he rented a four-room apartment at Shomolu area of the state without paying through his nose. Boniface explained: “I wanted to rent a two-bedroom apartment at Shomolu last year but was discouraged after I was told the rent was N300,000 per annum. I continued looking for a house but was shocked when I went back this year and the agents told me that the same apartment has had its rent increased to N380,000 per annum. The drastic increase they said is due to the increase in fuel price. But since I needed a new place, I called one of my cousins who was also looking for a new apartment and we added our money and got a four-bedroom apartment for N450,000 per annum at Shomolu. The landlord was kind enough to collect one year rent from me. My cousin is staying in two rooms with his family and I am staying in the other two rooms with my family and we are sharing the kitchen and other facilities in the house. That way we have been able to save N500,000 to invest in our business.”
While residents are bearing the brunt of the poor planning for housing in the state, property developers have maintained that the tenancy law will be effective only when the government builds more houses in the state. They said that enforcement of the law will not yield the desired positive results since the demand for houses far outweighs the supply.
Mukalia Moshood, a property developer, said: “Who do you report the erring landlords to? Also building materials have continued to increase while purchasing land in Lagos State is like the most expensive thing in the world. The truth is that the government does not see housing as a necessity for the people and so the government continues to play politics with a crucial need like housing. When was the last time the Federal Government built houses in Lagos? Since the Babatunde Raji Fashola administration, how many housing units have been built?”
As a way forward, Moshood said the government should create the enabling environment for property developers to build in the state. He said: “The truth is that if the supply of houses is more than the demand, the market will automatically regulate itself. The rent will drastically reduce when the landlords do not have people chasing them for the limited houses. So it is up to the government to build more housing units or create the enabling environment for property developers. In our own way, we have tried to provide affordable houses. But you need to see the extortion we face from the Ministry of Housing and from the touts in the area who call themselves “omo onile (the original owners of the land).” Even the police will come to you for their share immediately they see that you have demolished a house for building or rehabilitation. The “omo onile” will ask you to pay between N500,000 and N1 million before you can start building a house. And if you refuse to pay them, they will unleash mayhem on the workers. So how do you expect that after building that house, the rent will not increase?”
E. Erinfolami, a landlord and the chairman of the Mafoluku Property Agents Association said that government cannot regulate houses they do not own. “The tenement law in Lagos is a good one because it also empowers the landlords. But the law will work effectively when government checks the exorbitant prices of building materials like nails, cement, land, rents, among others,” he said.
Chukwudi Owo, the President and Chief Executive Officer of ResourceField Incorporated, which is based in Houston, United States of America, said foreign investors will spend money in the housing sector in Nigeria if the issue of insecurity in the country is addressed. Owo said: “The government of Lagos State has taken the right step in the right direction by passing the tenement bill into law. But the law is discriminatory as it exempted high brow areas like Ikoyi, Victoria Island, Apapa and others. The housing challenge in the country cannot be resolved the way we are going about it. Government must invite foreign investors to spend money in our housing sector. Unfortunately, the insecurity in the country is sending the foreign investors away. On our part, we tried bringing in investors to build houses in Lagos and Abuja. This is an investment to the tune of $1.2 billion. But the foreign investors left after the October 1, 2010 bombing. This is a business that would have created massive houses for our people and also create jobs for our teeming population/ But sadly, the insecurity in the country discouraged the investors.”
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