The federal government has urged private developers and individuals to consider limiting the practice of collecting rent in advance, especially for long periods of time.
Minister of State, Works and Housing, Mr. Babatunde Fashola enjoined the council to recommend, as part of its communique, a legislation that limits payment of rent in advance and add sanctions for violation. He pointed that the government has a limited role to play in the provision of affordable housing to Nigerians since houses are mostly built by individuals and private companies. Fashola, argued that the government has a limited role to play in the provision of affordable housing to Nigerians since houses are mostly built by individuals and private companies.
According to the Government, during renewal, private landlords should give back by accepting monthly, quarterly or half- yearly rent instead of one year, two or three years rent in advance.
The Minister stated: “It is therefore my candid recommendation to this council to consider intervention by way of recommending a legislation that limits advance payment for renting an accommodation. My recommendation for improving access and affordability to housing in the Covid-19 era is for private companies and individuals to give back some of what they control to citizens in the way the federal government has given back to citizens some of what it controls.”
He stated that the Federal Mortgage Bank of Nigeria (FMBN) had been driving the cooperative housing initiative at the federal government level, describing it as a flexible scheme in terms of design, leveraging members to get group discount for purchase of building materials as well as engagement of contractors.