Lagos Government Threatens to Terminate Contracts Over Delayed Housing Projects
The Lagos State Government has issued a strong warning to contractors working on state housing projects, cautioning that failure to meet agreed deadlines could lead to contract termination.
Moruf Akinderu-Fatai, the Lagos State Commissioner for Housing, delivered this message during an inspection of several government-funded housing projects, including the Sangotedo Housing Estate, Eti Osa Phase 2.
The Commissioner expressed dissatisfaction with the sluggish progress on these projects, despite consistent government support and commitment. His comments addressed growing public concerns about delays in key housing initiatives critical to meeting the state’s housing demands.
The statement, shared on the Lagos State Government's official social media platform, highlighted that contractors unable to meet project timelines risk losing their contracts, which would then be reassigned to more capable firms.
"Contractors handling state housing projects are expected to adhere strictly to their schedules as outlined in their agreements. Failure to do so will result in contract revocation and re-awarding of the projects to companies that can deliver promptly," the statement noted.
Akinderu-Fatai also relayed Governor Babajide Sanwo-Olu's displeasure with the delays, urging contractors to improve their performance while maintaining high standards of quality.
Additional Details
The Commissioner underscored the administration's resolve to fulfill its housing promises and called on contractors to meet deadlines without compromising quality. The Permanent Secretary of the Ministry of Housing, Engr. Abdulhafis Toriola, echoed this sentiment, emphasizing the critical role of timely project delivery.
One notable development is the ongoing Sangotedo Housing Estate Phase 2, which includes 43 blocks and will provide over 500 new housing units upon completion. This project builds on the success of the first phase, which delivered 744 units in December 2021. Other active projects include housing developments in Ajara, Badagry, Ibeshe Scheme 2, Ita Marun, and Egan Igando Clusters 2 and 3, all part of a broader government effort to address the growing housing demands of Lagos State. The administration aims to complete all these estates by 2027.
Key Housing Initiatives
To address the housing gap, the Lagos State Government has introduced innovative programs such as the Rent-To-Own Scheme and the Lagos Home Ownership Mortgage Scheme (Lagos HOMS).
The Rent-To-Own Scheme enables residents to pay a 5% down payment, move into their homes immediately, and spread the remaining cost as rent over a 10-year period. Applicants must be Lagos residents, first-time buyers, at least 21 years old, tax-compliant, and demonstrate affordability, ensuring that monthly payments do not exceed one-third of their income.
Similarly, Lagos HOMS, managed by the Lagos Mortgage Board, provides affordable housing through mortgage financing for first-time buyers. Under this scheme, buyers make an initial contribution of up to 30% of the property's value, with the remainder spread over 10 years. This program emphasizes equitable homeownership, prohibits subletting, and enforces transparency through a rigorous pre-qualification process.
These initiatives highlight the Lagos State Government’s commitment to providing affordable housing and addressing the needs of its growing population.