The Lagos State Government has said it will gradually replace annual rent payments with more flexible monthly and quarterly options.
This plan is designed to reduce the financial pressure on tenants, especially those with low income. Many Lagos residents struggle to pay the usual one-year rent in one lump sum.
Commissioner for Housing, Moruf Akinderu-Fatai, made this known during the 2025 Ministerial Press Briefing in Alausa, Ikeja. He said the new rent structure builds on the government’s earlier rent-to-own scheme.
The rent-to-own policy, introduced in 2017 under the Lagos Home Ownership Mortgage Scheme (LagosHOMS), allows residents to pay a 5% deposit and spread the remaining balance over 10 years.
Akinderu-Fatai said the success of that model encouraged the state to explore new ways to reduce the pressure of yearly rents.
“That initiative was well-received, and its success encouraged us to explore new ways to reduce the pressure of yearly rent payments,” he said.
He described the current annual rent system as outdated and harmful to working-class families. He said many Lagosians take loans or borrow money just to meet landlords’ demands.
“We believe monthly or quarterly payment options will offer people more breathing room and reduce the stress of sourcing lump sums,” he added.
Consultations with Landlords and Developers Ongoing
The state government is already speaking with landlords, real estate developers, and other key players in the housing sector.
Akinderu-Fatai said the discussions aim to prevent conflict, ensure compliance, and set up payment tracking systems.
“There are issues to resolve — landlord cooperation, payment monitoring, and enforcement mechanisms,” he noted. “But discussions are ongoing, and we are listening to all sides.”
Some property owners have raised concerns about possible rent defaults if tenants pay monthly. Others fear enforcement will be weak. But the government insists it is putting proper legal and technical systems in place.
He said the plan will first be tested in selected parts of Lagos before full implementation.
“This is not just policy on paper. We are making real progress. We understand what this means for many families, and we are determined to make it happen,” Akinderu-Fatai stated.
Over 22 million people live in Lagos, making it the most populated city in Africa. Housing demand remains high, with thousands moving into the state every year. The new rent payment plan is expected to affect over 60% of renters across the city, especially in densely populated areas like Alimosho, Ikorodu, and Mushin.
It is hoped this policy could also reduce homelessness and promote rental housing development in the long term.
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