Can The Federal Government Provide Shelter Solutions For People In Nigeria?

About 67 to 69 percent of people in Nigeria do not have access to formal financing that will let them start building or improving a home.

Traditionally, more people in Nigeria build incrementally, as their resources allow, so housing is a process, not a product. These families cannot afford a long-term, traditional mortgage. Instead they build in stages – creating a makeshift shelter and then eventually replacing it with permanent materials and expanding it. Small, short-term loans can fund the steps in this process with payments that are affordable for families with little money who want to improve their living situations.

However, the federal government of Nigeria have continue to neglect and show lackadaisical attitude towards this aspect of the economy. You can't just understand why there is not enough synergy between the state government and the federal government of Nigeria to tackle this issue. Just last month, the governor of Lagos State in the person of Babajide Sanwolu issue an ultimatum to squatters in various places in Lagos. To go where?

Why can't the state government and the federal government of Nigeria have a partnership to provide technical assistance to leading financial institutions in the country to develop housing microfinance products and services to serve people living on less than US$1 per day. This initiative should target people who want to improve their housing conditions progressively. Through these financial institutions, families can access small, short-term loans with affordable payments that can fund their incremental building process.

This project if funded, can helped more than 40,000 families in Nigeria access loans to secure adequate housing and so improve their living conditions.

Read More

Paying Of Rent On A Monthly Or Yearly In Nigeria - Which Is Better?

Both of them has their pros and cons, but it all boils down to your source of income and how money enters your hand. For alary earners, monthly might be okay. But because of our country's tendency to owe workers salary, then it's better to pay every 3 months, or 6 months. Reason is that, most times, salary is always fixed, so by deducting some amount monthly for rent, you will get used to it.

However, paying yearly doesn't really favour salary earners, because in most cases, your yearly rent might be more than your one month salary.. that means, there's always tension when it's time to pay rent...

While on the other hand, business people, yearly is better, because their case is an example of "money no dey today, e go dey tomorrow". I can tell you for free, paying monthly rent, trust me it's not that easy if you don't have a stable income.

A lot of people does prefer monthly better. One year lease but monthly payments. Most people believe that paying monthly destabilizes one's financial plans. That under yearly, you can save large amount for investment during that one year waiting period.

Paying yearly is better. I don't really see the value of paying rent monthly anyway. I feel people who pay rent monthly are struggling people.

I mean, why not pay yearly so you could have time to breathe and save up for the next payment when your rent is due.

Monthly rent payments is total rubbish. What if you lose your monthly salary job on a long run or your business collapse? How would you pay for the next month rent?

If the amount paid per month adds up to the amount per year then for most people it wouldn’t matter. Unless there’s a discount for paying annually.

One could argue that paying monthly is better. Assuming your rent is 100k per month or 1.2m per year and you have your money in an interest generating account, your money can grow while you only take out monthly rent as against the lump sum.

Annual payments on the other hand gives you peace of mind. Just pay and forget for a whole year.

It’s not a different situation here. That’s tithes and not rent.

Pastor won’t fight with you if you don’t pay your monthly tithes BUT Landlord would fight you if you can’t pay your monthly rent. May God help struggling men! If you have the money, I suggest you pay yearly so that you can plan your money on other things.

To add - same with salaries most developed economies pay bi -weekly . We are stuck on monthly. People would owe other people till pay day especially December to January. Longest time between pay days. Just pay people every 2 weeks. It will reduce debts. And people can plan and have access to their money.

For yearly, you have 11 months to plan for the next, and worry less about accommodation for some time. Monthly is risky, you can have emergency that won't allow you to meet up.

Just pay the rent once and give yourself breathing space for the next 12 months.

Read More