Aminat Yahaya —
The Chief Executive, Cromwell PSI, Mr. Sola Enitan, said the Nigerian housing situation would require a range of solutions, emphasizing the need for sustained investment in affordable housing and infrastructure development.
He also said the high cost of annual rents in major cities in Nigeria had been a persistent problem for many years and has been been a major challenge for individuals and families looking to rent apartments.
He explained that there had been suggestions to consider monthly rental collection as a possible solution to encourage urban-rural migration.
“In examining the housing market, both options have their advantages and disadvantages”, he said while speaking with the Nigerian Tribune.
Monthly rental collections, according to him, would provide tenants with more flexibility in terms of payment and could potentially make renting more affordable for some.
This option, he said, could also help landlords to better manage their cash flow and reduce the risks of default by tenants.
However, he noted that the implementation of monthly rent collections might pose challenges for landlords who already invested in properties with the expectation of receiving annual payments.
“It may also lead to higher administrative costs and challenges in ensuring timely payment of rent by tenants,” he said
On the other hand, he pointed out that encouraging urban-rural migration could help reduce the demand for housing in major cities and potentially lead to a reduction in rental prices.
“It can also provide individuals and families with access to more affordable housing options and reduce the strain on already limited resources in urban areas.
“However, the implementation of such a strategy would require significant investment in infrastructure and services in rural areas to ensure that they are livable and attractive to potential migrants.
“Additionally, it may not be a feasible solution for individuals who work in urban areas and cannot afford the costs or time associated with commuting from rural areas.”
To address the challenges of the housing market in Nigeria, Enitan said it has become essential to explore a range of solutions that could work in tandem.
One of the approaches, according to him, could be to encourage the development of affordable housing in urban areas through public-private partnerships.
Besides, he said the government could decide to implement policies and regulations to encourage landlords to offer more flexible rental arrangements, including monthly payments.
“In addition, investment in rural infrastructure and services, such as transportation, healthcare and education could make rural areas more livable and attractive to potential migrants,” he said.
The real estate guru stated that challenges in Nigeria’s housing market would require a multifaceted approach that considers a range of solutions.
“While monthly rental collections and urban-rural migration may provide some relief, there is a need for sustained investment in affordable housing and infrastructure development to ensure that individuals and families have access to safe, decent, and affordable housing options in both urban and rural areas”, Enitan said.
