Tenants in Lagos Can Now Pay Monthly Rent Under New Government Reform

In a move to make housing more affordable and reduce the financial strain on residents, the Lagos State Government has unveiled a new rent payment policy that allows tenants to pay rent in more flexible installments.

Under the new structure, tenants can now choose to pay their rent on a monthly, quarterly, or yearly basis—up to a maximum of one year in advance. This initiative is designed to accommodate the financial realities of tenants while promoting fairness in the housing market.

The announcement was made by the Lagos State Commissioner for Housing, Mr. Moruf Akinderu-Fatai, alongside the Special Adviser to the Governor on Housing, Mrs. Barakat Odunuga-Bakare. They emphasized that the reform follows a series of meetings with key stakeholders, including the Estate, Rent and Commission Agents Association of Nigeria (ERCAN).

The state government also raised concerns over certain unethical practices in the real estate sector, such as sudden rent hikes and the enforcement of illegal charges by some agents. These actions contradict the Lagos State Real Estate Transaction Law, which caps agents’ commissions at 10% per transaction.

This new rent model aims to:

• Deter exploitative rental practices,

• Make housing more affordable,

• Balance the rights and obligations of both landlords and tenants, and

• Encourage steady and reliable rent payments.

ERCAN President, Mr. Godwin Aleke, expressed the association’s full support for the policy and assured the public that ERCAN will work collaboratively with the government and other stakeholders to uphold industry standards and professionalism.

Overall, this reform marks a step toward a more transparent, fair, and accessible rental system in Lagos, with benefits for both property owners and renters alike.