Edward Akinlade

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WHY HIGH RENT IN LAGOS?

 

 

 

Historical Reasons support high rent:

According to the oral history of Lagos, at some point around 1300-1400 CE, the Oba (King) of the Benin Empire - who used to send trade expeditions to Ghana, where spices were traded - heard from one of his traders complaints about the way she was being treated by the Awori who lived in the area of current day Lagos. The Oba of Benin then sent a trade expedition by sea to engage with the Awori people, who nonetheless declined to engage and attacked the mission sent by Benin.

Upon hearing this as the mission returned to Benin City, the Oba of Benin commanded the assembling of a war expedition, led by Ado, a Benin Prince, which headed to the settlement of the Awori (current-day Lagos; then called Eko by the Benin people) and demanded an explanation.

 

On getting there, Ado and his army were more than well received - the Awori from Lagos asked Benin Prince Ado to stay there and become their leader. Ado agreed, on the condition that they surrendered their sovereignty to the Oba of Benin, to which the Awori people of Lagos agreed.

Upon hearing this, the Oba of Benin gave his permission for Prince Ado and the expedition to remain in Eko with the Awori. The Oba of Benin later sent some of his chiefs, including the Eletu Odibo, Obanikoro and others, to assist Ado in the running of Eko, resulting in market activities and gathering of traders needing homes to rent in modern day Eko.

This has created a magnet or Aje for a small Lagos. If you want to do business in the west coast of Africa, you must visit Lagos.

 

Lagos states Government policies.

30 years gap and the lack of mass housing for rent.  Alhaji Jakande was the last Governor that successfully implements and delivered mass housing policies for rent.  For 30years successive government ignores these needs of Lagos. Jakande also commissioned a report on homes shortage in Nigeria, as at 2010, estimated at 16million and by 2020, projected at 20million.   

Multiple Taxation in Lagos, you pay Lands, you pay planning, you pay environment, you pay council, you pay taxes, you even pay Omo onile. Fashola also pay omo onile so you must pay, as they say.

Single year rent payment law. This has discourage investors in homes for rents and has push rent to new levels, Landlord now collect two years rent as one year in most places in Lagos.

Access to Land through government allocation is a battleground for money bags in Lagos.

Planning approval takes for ever. Yet the government said, it will take 1 to 2 months, “not on your nelly baby oze”.

 

Federal Policies

Access to credit from banks is near impossible for developer. If you are lucky to received loan offers, you must find over 150% security for the bank to hold.

25%+ interest rates is a killer for any developer business plan.

Sales of Federal Government land in Lagos has led to shortage in homes for rent

 

Others reasons

·         Higher exchange rates to import building material.

·         Highly price local building material.

·         High fuel costs, showing itself through transportation costs and generators.

·         High Labour costs.

·         Inadequate design to maximise land space.

 

 

 

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