By ABAH ADAH, Abuja
The Federal Government of Nigeria (FGN) has urged the governments of the 36 states in the country to look into the possibility of enacting monthly rent collection by property owners as a step towards reducing the huge housing gap.
Minister of Works and Housing Babatunde Fashola gave the advice while delivering the keynote address on Thursday at the 10th Meeting of the National Council on Lands, Housing and Urban Development with the theme: “Housing Development as a Catalyst for Job Creation, Social Inclusion and Economic Development” in Lagos.
In the address which was made available to The SUMMIT, Fashola said, “My dear colleagues, there is no debate that the world is a place of inequality; among nations and amongst people.
“While we cannot make the world equal, we can commit to reducing inequality.
“We may not be able to make all people homeowners, but we can reduce the number of those who lack shelter or live on the edge every so often when rent is falling due.
“I am sure that our country will be a much better place when three years rent in advance, two years rent in advance or one year rent in advance for middle class and working family residential homes becomes monthly rent, payable at the end of the month.
“Why we may not get there immediately, this is an area of immense exclusion that we can remedy by legislative action at state level.
“This is a matter in which the Federal Government has no legislative competence. It is a matter for the states, and I urge you not to turn your backs.
“Three years rent in advance of monthly salary paid in arrears lies at the heart of affordability of access to shelter.
“All state legislators must see this as an important area of representation of their people to make life easier. So must Governors and Commissioners through Executive bills.”
According to Fashola, bridging the housing gap requires an All of Government Action (AGA) based on “the fact that land is a critical component of capital formation and it is controlled by the states (not the Federal Government) and I am persuaded that appropriate, targeted and purposeful use of land, such as for the development of housing by the states and private sector, will unleash prosperity in all states that aggregates to national prosperity”.
Fashola who also advocated reduction in the bureaucratic process involved in the urban planning and construction said the number of days and the length of time it takes to get a construction permit or planning approval the and the cost of it has been a bane of good rating for Nigeria internationally.
“We in government must consciously improve on the bureaucracy around granting of construction permits or planning approval by taking steps to reduce the number of people involved, introducing some level of automation, such as online submission of applications and reducing the cost of approval.
“We must see revenue in a more broader sense, such as reduced income for planning approval, and increased income from consequential construction like income tax of employees on site, and a broader land use charge from more houses built,” he said.
The Minister and former Governor of his host state on the occasion, Lagos, was of the view that optimal development of land either for agricultural, housing or whatever purposes comes with a lot of value addition and benefits to both the state and the entire country, especially in the area of job creation and overall economic uplift.
Buttressing his point from the capital appreciation and property taxes perspective, Fashola said, “Apart from some of the benefits that come with building which I have highlighted above, the investment in infrastructure alone adds 30 to 40% to the value of the land which was hitherto of little or no value. Estate surveyors will confirm this to you.”
