Project Topics

TENANCY LAWS, MULTIPLE TAXATION AND RESIDENTIAL HOUSE RENTS IN LAGOS

TENANCY LAWS, MULTIPLE TAXATION AND RESIDENTIAL
HOUSE RENTS IN LAGOS

 

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

Lagos State can be described as the Nigeria’s
commercial capital, is the country’s most active and most expensive rental market
where tenants at its highbrow areas pay expensively for residential apartment
while similar apartments in the low-mid income areas go for amount. Apart from
high demand and low supply, there are other factors responsible for this high
rent and, according to Akinlade (2014), the Lagos Tenancy Law and multiple
taxation are driving up house rents in Lagos. Recognizing that Lagos is home to
over 21 million people, with housing posing a major challenge to the huge
population, the state government in August 2011 enacted the Tenancy Law which
prescribes one year rent for a new tenant and six months for a sitting tenant.

Akinlade
(2014) explained that the single year rent payment law has discouraged
investment in homes for rent and has pushed rent to new level, adding that,
presently, landlords collect two years’ rent for one year in many locations in
Lagos. He explained further that developers, through multiple taxation, were
made to pay for land, planning and approval, environment, council and taxes.
Access to land through government allocation is a battleground
for money bags in Lagos. Planning approval takes forever, yet the government
says it will take one to two months.

The
Federal Government’s housing policies has not contributed enough for developers
in that access to credit from banks was near-impossible for developers and developers
that are lucky to receive loan offers must find over 150 percent security for
the bank to hold; 25 percent interest rate on bank loans which is a killer for
any developer’s business plan (Collins, 2003).

Other
reasons for the high rent to include sale of Federal Government’s land in
Lagos, high exchange rate to import building material, highly priced local
building material, high fuel costs showing itself through transportation costs
and generators, 
high labour costs,
and inadequate design to maximize land space.

Lagos
has seen 30 years of mass housing gap, because since after Lateef Jakande
governed Lagos from 1979 to 1983, there has been no mass housing for rent. Jakande
was the last governor of the state that successfully implemented and delivered
mass housing policies for rent. 
For 30 years,
successive governments ignored this need of Lagos residents. Jakande also
commissioned a report on homes shortage in Nigeria, as at 2010, estimated at 16
million and projected to reach 20 million by 2020.

According to Affe (2008), it is fair to the
citizens that government discharge its responsibilities to the people and give
meaningful life to the citizens. This underscores the point why Land Use Charge
was introduced by Lagos State Government to raise revenue for maintaining
existing infrastructure and provide new ones. It is in line with this that the
researcher is examining the effect of tenancy law and multiple taxation of
residential house rent in Lagos State.

1.2   STATEMENT OF THE PROBLEM

Lagos State is steadily emerging
a multi-nuclei metropolis giving rise to a number of real estate submarkets.
Notwithstanding, residential house rent has been abnormally high especially in
the normally adjudged as more juicy in some neighborhoods such as Ikoyi,
Victoria Island, Lekki-axis, Ikeja, Apapa, Isale Eko and Amuwo Odofin. However,
researchers are of the opinion that the skyrocketed residential house rent in
Lagos State is occasioned by several factors including the tenancy law
introduced by the Lagos State government and multiple taxation. This study is
examining the effect of tenancy law and multiple taxation on residential house
rent in Lagos State.

1.3   OBJECTIVES OF THE STUDY

The
following are the objectives of this study:

1.  To
examine the effect of tenancy law on residential house rent in Lagos State.

2.  To
examine the effect of multiple taxation on residential house rent in Lagos
State.

3.  To
identify other factors that determine residential house rent in Lagos State.

 

 

1.4   RESEARCH QUESTIONS

1.  What
are the effects of tenancy law on residential house rent in Lagos State?

2.  What
are the effects of multiple taxation on residential house rent in Lagos State?

3.  What
are the factors that determine residential house rent in Lagos State?

1.5   HYPOTHESIS

HO:
Tenancy law and multiple taxation does not influence residential house rent in
Lagos State.

HA:
Tenancy law and multiple taxation does influence residential house rent in
Lagos State.

1.6   SIGNIFICANCE OF THE STUDY

The
following are the significance of this study:

1.  Findings
from this study will educate the general public on how tenancy law and multiple
taxation has affected residential house rent in Lagos State. It will also be a
guide for policy makers and the government of Lagos State on how to checkmate
the issue related to individuals or corporate body paying two or more types of
tax at the same time.

2.  This
research will also serve as a resource base to other scholars and researchers interested
in carrying out further research in this field subsequently, if applied will go
to an extent to provide new explanation to the topic

1.7   SCOPE/LIMITATIONS OF THE STUDY

This
study will cover the tenancy law of lagos state and all the issues of multiple
taxation with a view of identifying their influence of residential house rent.

LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the
efficiency of the researcher in sourcing for the relevant materials, literature
or information and in the process of data collection (internet, questionnaire
and interview).

 Time constraint– The researcher will
simultaneously engage in this study with other academic work. This consequently
will cut down on the time devoted for the research work.

REFERENCES

Affe M
(2008). Land Use Charge: Fasola Seeks Quantity Surveyors’ Help.
Saturday Punch, 51: 1411 in www.punchontheweb.com,

Collins C
(2003). Infrastructure. Advanced
Learner English Dictionary,
41h ed. London: Harper Collins Publisher.

Akinlade
IU (2014 ). Property Valuation and Appraisal. Owerri: BON Publications. Lagos State of Nigeria Official Gazette.
Lagos State Government of Nigeria.
Lagos State Printing Corporation,
lkeja. LSPC 566/72001/500
34: 20