Nigerian housing policy should prioritize the rent-to-own program, says Fashola

Former Works and Housing Minister Babatunde Fashola has asked President Bola Tinubu’s administration and housing stakeholders to focus on a rent-to-own strategy to reduce the number of homeless persons in the country.

Fashola made the remarks while delivering the keynote presentation at the Federal Housing Authority’s 50th anniversary celebration in Abuja on Thursday.

The theme of the event titled, “The future of housing in Nigeria and 50 years of FHA: A call to action for political leaders and policymakers from decent and affordable housing.”

The former minister stated that the majority of Nigerians cannot afford to own houses as a result of financial challenges, adding that it is pertinent for the Federal and state governments to expand their rent-to-own policies.

“Homelessness is the most undignifying experience for a human being and must be confronted with the necessary resolve by political leaders and policymakers,” Fashola said.

“The sad but painful truth is that not everybody will be able to afford to buy a house; but I strongly believe that rental housing for all is possible, not only based on how we build but also how people pay rent.

“Therefore, our housing policy must focus on rental as it focuses on ownership. Consequently, rent-to-own initiatives that started in the last administration must not be allowed to die.”

According to the former Lagos governor, lawmakers at both federal and state levels should enact laws that allow citizens to acquire government-built homes with convenient payment plans from their wages and salaries.

“Instead, there is scope in my view for improvement in expanding rent-to-own schemes at Federal and State levels, and also increasing advocacy for state legislators to make laws that make the payment of rent convenient and convergent with wages and salaries,” he said.

He emphasised the need for the country’s housing policy to channel resources into achieving rental housing for people and the FHA must be conscious of this, adding that the 50th anniversary celebration delivers new mechanisms of home ownership.

The former Lagos State Governor further gave suggestions on financing, housing types, affordability, people participation, and maintenance with a charge that, “FHA must become a proper business run on very strict corporate governance principles that conform with global best practice and this will be consistent with previous attempts to commercialise or privatise the authority.”

He said, “FHA should recognise that the market demand is probably dominated by those in the age bracket of around 25 to 35 years and it would be helpful for FHA to conduct a highly professional survey of what their needs are before designing and building.

“The other survey that I would advocate is the payment mode that this category of potential buyers will opt for and to urge FHA to factor in digital platforms for advertising, sale, and payment because this is the language of this class of buyers.

“If FHA expects these class of buyers to come to their offices to come and collect forms to buy houses and go through some of the ancient red tape that time has tied away for FHA, then there is a risk to success.”