Presidential aspirant and former Cross River Governor Donald Duke has spoken about the housing and rent systems in Nigeria.
During his Loose Talk podcast interview, Donald Duke said that the reason why Nigeria’s rent system is unfair for people looking for accommodation is because of our banking system.
Paying 1-year advance rent
In Nigeria, landlords demand tenants to pay one-year or in some cases two-year rent advance, a system that is not widely practiced across the world.
“It comes back to the banking system because the landlord built that house. He got a loan from the bank and the bank wants him to pay at least 30% in two or three years so he is going to fleece you”Donald Duke explains.
“But if it was affordable then he can spread his own payment. If you get a mortgage let’s say United States or Europe, it’s 30 years. In 30 years, at 3.4% you would build your house. The financial system is very, very critical but we underestimate” he further says.
However, the presidential aspirant sees an opportunity in Nigeria’s housing deficit.
“We have a 20 million housing shortage in Nigeria. That’s a lot but that is also a great opportunity because you can create a lot of jobs on the back of that” he says.
Fashola begs landlords
Early this month, Minister of Power, Works and Housing, Babatunde Raji Fashola had begged landlords and house owners to review the method of charging rent for their properties to help low-income earners cope with housing demands.
He said, “If you ask me to go and bring in advance one year’s rent from what I’m going to earn monthly in arrears, how feasible is that?
“Even my salary as a minister is paid at the end of every month, not even at the beginning; then you the landlord is now asking me to bring next year’s salary, and we’re complaining that there’s corruption.
“I tried to intervene as a governor, passing the resolution to our own council in Lagos then, but the outcome was not peaceful, because there were landlords in our midst.
“Those who get paid weekly pay their rents weekly; those who get paid monthly pay monthly rents.”
The minister reiterated his position by pointing out that all the developed countries being compared with Nigeria don’t operate the same method of collecting rent.