Can The Government Regulate The Housing System in Nigeria?
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Loading... - Sayeed Akanni
- 13 Nov 2024
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The housing crisis in Nigeria, particularly in urban centers like Lagos, has reached alarming levels, with rents skyrocketing and accessibility becoming a significant issue for many residents. The case of Dami, who faced inflated rents while searching for a mini flat in Surulere, highlights the broader challenges that potential tenants encounter in the current housing market. With house rents in Lagos reportedly increasing by 100% annually over the past four years, the question arises: can the government effectively regulate the housing system in Nigeria?
Factors Contributing to Rising Rents
Several factors contribute to the rising cost of housing in Nigeria:
i. Economic Crisis: The recent economic reforms, including a significant increase in fuel prices and the soaring costs of building materials, have exacerbated the housing affordability crisis.
ii. Unregulated House Agents: The role of house agents, many of whom are untrained and unlicensed, adds another layer of complexity. These agents often charge exorbitant fees, sometimes exceeding the legal limit of 10% of the annual rent, which can lead to additional financial burdens for tenants.
iii. Lack of Enforcement: Although the Nigerian Institution of Estate Surveyors and Valuers has established the Association of Estate Agents in Nigeria to regulate the practice, enforcement of these regulations remains lax, allowing unqualified agents to exploit house seekers.
Government's Role in Housing Regulation
The government has the authority to regulate the housing sector through legislation. According to real estate lawyer Ridwan Oke, “The government has the power to regulate anything as long as it is through a law passed by the legislature.” Historically, the Nigerian government has attempted to address housing issues through various policies:
i. National Housing Policy (1991): This comprehensive initiative aimed to provide affordable housing options and emphasized private sector involvement. However, challenges such as inadequate funding and poor management hindered its effectiveness.
ii. Economic Sustainability Plan (2020): This plan included a social housing program aimed at constructing 300,000 affordable homes. While ambitious, economic constraints and supply chain disruptions have limited its impact.
iii. Lagos State Rent Control Law: This law was enacted to protect tenants from excessive rent increases and unjust evictions. However, inconsistent enforcement has allowed landlords to circumvent regulations, keeping rents unaffordable for many.
Recommendations for Effective Regulation
To effectively regulate the housing system in Nigeria, several measures could be implemented:
i. Strengthening Enforcement: The government must ensure that existing laws, such as the Rent Control Law, are enforced consistently. This includes penalizing landlords who fail to provide rent receipts or who charge excessive rents.
ii. Incentives for Developers: Providing incentives such as loans, funding, and streamlined approval processes for private developers can encourage the construction of affordable housing. Reducing bureaucratic hurdles and eliminating corruption in the approval process are essential.
iii. Regulating House Agents: Establishing a certification process for house agents and enforcing compliance with ethical standards can help protect tenants from exploitation. This would involve training and licensing agents to ensure they operate within legal and ethical boundaries.
iv. Addressing Discrimination: Implementing laws to combat discrimination in housing—such as biases against certain tribes or unmarried women—can promote inclusivity and fairness in the rental market.
v. Limiting Advance Rent Payments: Enforcing regulations that prevent landlords from demanding more than one year’s rent upfront can alleviate financial pressure on tenants.
While the Nigerian government has made attempts to regulate the housing system, significant challenges remain. Effective regulation requires a multifaceted approach that includes strengthening enforcement of existing laws, providing incentives for developers, regulating house agents, addressing discrimination, and limiting advance rent payments. By taking these steps, the government can help create a more equitable and accessible housing market, ultimately improving the living conditions for millions of Nigerians.
