High Cost Turns Residents Away from Fashola’s LAGOSHOMS

LAGOS – June 6, 2015 – There are indications that residents of Lagos State have rejected houses erected by former Lagos State Governor, Mr. Babatunde Fashola under the Lagos State Homes Ownership Scheme (LAGOSHOMS).

So far, the state government has invested billions of Naira of state funds constructing some 10,000 housing units in various areas in Lagos State.

But from the last count, only 603 people who won houses during the monthly draws have received keys to their houses and are currently living comfortably in the homes, former Commissioner for Housing, Mr. Bosun Jeje said at a press conference.




Besides, many who made initial deposit for the houses are asking for refund due to inability to pay for the houses. According to Jeje, the ministry received 21 applications for refund of deposits on money paid for the purchase of houses in the LAGOSHOMS. He said that 46 petitions were processed and five applications approved.

He said many asked for refund because they are not able to meet up with the financial requirements.

On complains about cost of the homes, the commissioner said mortgage homes are not for everybody but that they are meant for those who can afford it.

He said the LAGOSHOMS is patterned in such a way that individuals will be able to request for houses based on income and that the website is interactive,  able to advise visitors on housing schemes that are most suitable for their income.

However, expects have identified the major obstacle to interest in the luxurious LAGOSHOMS as the highly prohibitive cost.

“They are even more expensive than houses put up by private developers who are basically in business to make money unlike government. How government that has free land and would build several flats on one plot of land sells houses at a rate more expensive than detached flats sold by private developers”, Samuel Omoniyi, an Estate Agent told our reporter.

Under Fashola’s LAGOSHOMS, prices range from N4.2 million for a room and parlour bedroom and N4.10 million to N9.08 million for one bedroom flat depending on the area; two bedroom flat ranged from N6.22 million to N18.61 million in Gbagada, while three bedroom flat is sold from N9.96 million at Hon Shotomiwa Estate, Igbogbo, Ikorodu to N32.53 million the highest in Gbagada Phase II.

Many who criticize the LAGOSHOMS project under the previous administration wonder why the houses built by government on a free land and almost at elaborate discount for cement based on volume would be more expensive than those built by private developers.

They point to 3 bedroom luxury terrace sold in the highbrow Lekki Phase 1 for N27 million.

They are calling on the new governor of Lagos State, Mr. Akinwunmi Ambode to take another look at the prohibitive cost of the LAGOSHOMS and review them downward in the interest of the Lagos tax payers to avoid a situation where they will only become inhabitable by rodents instead of the masses.

While launching LAGOSHOMS,  the former governor said the houses are only available for residents of Lagos who have paid taxes for a period of 5 years and registered with Lagos State Resident Registration Agency (LASRA) and residents who have never owned a home in Lagos. He appealed to Nigerians to bid for houses in areas where they are willing to live since the homes cannot be rented until 10 years after completion of the payment.

He said the houses are available by ballot and that all applicants are to pay a non-refundable processing fee of N10,000.  Applicants are expected to pay 30 percent equity and pay the remaining at 9.5 percent interest for a period of 10 years.