Lagos State Deputy Governor, Dr Obafemi Hamzat, has said the state is exploring mortgage-backed housing and stronger regulation of the rental market as part of efforts to address rising housing costs and improve access to affordable accommodation.
Hamzat, who spoke on the state’s housing strategy, said Lagos could not continue to approach home ownership by purchasing houses outright, stressing the importance of mortgages and structured payment plans.
“So the strategy really rests on two pillars. So when you say make it more affordable, so there are two parts. Are we talking about rent? Are we talking about ownership? So ownership is for the state to actually build properties. But you know, the challenge is we cannot continue to buy houses the way we buy rice and yam. Do you understand? So we must buy properties using a mortgage.” He said.
He said the state’s mortgage system is intended to make home ownership more accessible by allowing residents to pay for properties over extended periods based on their incomes.
“And that’s why we have a mortgage board in Lagos. But again, it’s all about structuring things. So that’s why we said people must have a large family number. So we can know that, okay, you live in Lagos. This is where you live. This is your address. is where you work. So that there will be a credit that checks everything. That’s okay.”
Hamzat gave the example of a property in Ibeshe costing ₦7 million, saying a buyer could make a 10% initial payment and spread the balance over 10 years.
“If a flat in Ibeshe, which is 7 million Naira, you pay 10% with N700,000 and over 10 years, you are able to pay monthly. Some people pay N25,000 monthly or N35,000, whatever it is, depending on your income. So that is the way to go.”
Calls on Residents to Deal With Only Registered Agents
On the rental market, Hamzat urged residents to deal only with agents registered with the Lagos State Real Estate Regulatory Authority, LASRERA.
“As for the rent, we have an agency that is called LASRERA, Lagos State Real Estate Regulation Agency. Now, we advise our citizens, when you want to rent a property and you go to all those agents, those agents are supposed to register with LASRERA.”
He said residents could verify agents through the Lagos State Government platform and should avoid dealing with unregistered operators.
“If you go online, Lagos State is www.lagostate.gov.ng. So you should be able to, if the agent is not there, don’t deal with them. Because the law is very clear, but we cannot deal with people that is not registered. So our citizens must also help us to make sure that, you know, they are able to deal with registered agents.”
Hamzat also criticised the practice of demanding several years’ rent upfront and said the state was moving to limit advance rent payments.
“So the point is, why are you collecting three years rent? Who collects three years in salary in one shot? So we said, okay, let’s do, so the law is being passed to say, you cannot collect more than maximum a year as advance rate to say, okay, this is the first time somebody is renting a house. But after that, of course, we collect every month. So that is not, and it’s being regulated to say, percentage of rent, but it’s important that our citizens also report.”
He said enforcement would depend partly on residents reporting violations to the authorities.
“Because remember, the process is, we cannot just go and arrest people. We prosecute. And that’s the way to say, we all follow our rule of law. To say, okay, my landlord did this. But if we don’t check and we don’t register, it becomes difficult for us to manage.”
Hamzat said the government was not opposed to landlords earning rental income but argued that tenants should not be subjected to excessive demands.
“We don’t want, it’s not that we don’t want landlords to collect their rent. Of course, we want them to collect their rent. They are entitled to it. But we should not kill the tenants because we want to collect rent.”
Hamzat Encourages Young People to Consider Different Housing Arrangements
Responding to a question about how a 22-year-old earning ₦100,000 a month could afford a Lagos apartment costing about ₦1 million a year, Hamzat said young people should consider different housing arrangements and avoid spending an excessive proportion of their income on rent.
“So you see, look, don’t let us misunderstand ourselves as a people. We are cultural people. Do you understand? So if I start to work as a young person and I’m not married, a lot of us live with our parents. A lot of us live with our cousins. You know, go to Turkey, for example, and see how young people also live. So do you understand? So you don’t start from the top. Self-contained, you don’t start from the top.”
“You start from the average. So in fact, if you spend more than 40% of your income on rent, it is too high because you must eat, you must buy clothes, you must do transportation. Do you understand? So that is what is important.”
Hamzat also stressed the importance of savings and higher incomes in making home ownership possible.
“But the bottom line is, like I said, the culture of ability to save. So that if people see that you can save money, then I can give you a property. It doesn’t have to be, if you are a young person, you can start with one bedroom, or even a self-contained like you explained.”
He said the housing crisis was ultimately tied to the broader performance of the economy and the ability of residents to earn more.
“But what is important is we must also build our economy in such a way that people earn better. You understand? So that everybody can be uplifted. And that is the bottom line.”
