Former Lagos State Governor and ex-Minister of Power, Works, and Housing, Babatunde Fashola, alongside key players in the real estate sector, has called for the adoption of a monthly rent payment system in Nigeria.
Speaking at the Wemabod Real Estate Outlook 2025 in Lagos, themed “Real Estate Development: A Catalyst for Nigeria’s Economic Recovery”, Fashola emphasized that aligning rent payments with monthly salaries could help curb inflation and stabilize the economy.
“If rents can be paid monthly when salaries are received, you would see a (positive) change in the economy,” Fashola stated.
Support for Monthly Rent Payments
Backing this proposal, Abdulrahman Yinusa, Group Managing Director of Odu’a Investment Company Limited, highlighted the financial strain on tenants who struggle to make lump-sum payments.
“There is a gap between employees’ ability to see money and what they want to pay. To bridge the gap, employers can provide a guarantee to landlords by deducting rent directly from salaries,” he explained.
Similarly, Bashir Oladunni, Managing Director and CEO of Wemabod Limited, noted that a structured monthly rent system would make housing more accessible while also ensuring landlords receive their dues consistently.
“The government needs to establish regulations that protect both landlords and tenants. Property owners often rely on loans with interest, so a well-structured rent payment system will help sustain the real estate sector,” Oladunni stated.
He further revealed that Wemabod plans to expand its housing portfolio by 500 units over the next five years, integrating the monthly rental model.
Lagos State’s Monthly Rent Policy
In a related development, Barakat Odunuga-Bakare, Special Adviser to the Lagos State Governor on Housing, disclosed that the state’s monthly rental scheme is set to be implemented by the end of 2024 or early 2025.
“We all see what is being done in other countries—rents are collected monthly. We are working to implement a similar model, starting with the public sector before rolling it out to the private sector,” Odunuga-Bakare stated.
The policy aims to make rent payments more manageable for tenants while ensuring landlords receive stable income.
Impact on Nigeria’s Housing Market
The push for a monthly rent payment structure is gaining traction as stakeholders recognize its potential to:
- Reduce financial burden on tenants
- Improve rental affordability
- Boost investment in real estate development
- Enhance economic stability by synchronizing rent with salaries
With the Lagos State Government and key real estate players backing the initiative, Nigeria’s rental landscape may soon witness a significant shift.
