Housing - Nigerians rejected the monthly payment plan

One of the necessities of living is shelter after food, every man desires to have a roof over his head. A necessity that provides protection and warmth from exposure to weather and climate change (that is, the scorching sunlight, intense cold, dew, and rainfall).

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Unfortunately, in Nigeria, especially some parts of the northern states of the country, there are a very good number of people who are living homeless, these people are found sleeping in public and open spaces while some live in thatched and mud houses that could easily collapse or be destroyed when exposed to or under the influence of natural disasters like flood and fire. Even with civilization, many rural places have thatched huts built from straws gathered from corninea corn, and millets covered with grasses from harvested rice.

Painfully speaking, some of the modernized buildings we see around are built with inferior materials or poorly erected with poor drainage systems, and they are put up for rent at exorbitant prices far from the reach of the poor man. On average, payment of rent is about 150,000 - 200,000 Naira annually in some places, and sometimes this payment excludes water and electricity bills.

In 2022/2023 and 2024, a lot of demolition exercise was carried out in Kaduna state and the Federal capital Territory, these structures were brought down because they were either not approved by the Urban Planning Development Agency or they were poorly erected outside the approved and appropriate guidelines. The effect of this kind of demolition is usually great because a lot of people usually lose their homes, businesses, and properties.

More often, we hear or experience how landlords take their tenants to court because they failed to pay their rent as expected of them. Sometimes, the tenants may not be entirely blamed, because the delay may be due to financial challenges and constraints. However, no businessman goes into business to lose.

A few months ago, Senator Ned Nwoko, a billionaire businessman and senator representing the Delta-North constituency, had shown great interest and concern in addressing payment of house rent; he believes that payment should be made every month to relieve the occupying tenants from a lot of pressure and tension thereby making payment easier and convenient. The Senator sees the monthly payment of house rent as a better approach to a healthier relationship between both parties, once the bill is passed into law rather than the yearly payment as it is.

While this thoughtful act of the senator is a welcome idea and development for others, it is important that we also take a look at what's at stake. In a country like Nigeria, there are a lot of instabilities at the moment; a monthly rent payment may not be visible with the kind of hardship and struggles going on in the country.

For instance, if someone rents an apartment for 200,000 naira and his or her monthly salary or income is about 50,000 naira. With that, it is expected that he pays a rent of at least 20,000 Naira monthly; how can he or she survive with the remaining balance that has to be used to cater for feeding, transportation, medicals, electricity, water bills, and other miscellaneous? Or how can a family man with a lot of responsibilities cope, assuming the most affordable housing he gets is 250,000 naira for two rooms?

This monthly arrangement can be more effective and efficient only if the tenant has a stable and substantial income that can cater to both the rent and other necessities. While it is true that some tenants are usually troublesome, aggressive, and adamant when it comes to rent payment, a monthly plan payment wouldn't help either; sometimes, these tenants may mischievously move from place to place by the end of each month, avoiding payment.

Now on the part of the Landlords, payment by installment or monthly payment may limit or hinder their chances of making further or more investments because what they get every month may be insignificant to be invested compared to the bulk payment received yearly.

Although both monthly and yearly rent payments have added advantages and disadvantages, I would suggest that rent payments should be left open for both the Landlords and tenants to make arrangements that may be suitable for each party instead of passing a common bill into law. This may affect a Greater number of individuals than expected.

It would be of utmost importance if the Federal and State Ministry of Power, Works, and Housing created more accessibility to housing at a more reasonable and affordable price. This would help reduce the number of hopeless and homeless Nigerians on the street who may have something to do but no roof over their heads.

Reference

‘It Won’t Work ‘- Nigerians Reject Senator Ned Nwoko’s Bill On Monthly Rent Payment