In a significant push to ease the burden on residents grappling with Nigeria’s toughest rental market, the Lagos State Government has unveiled a new Tenancy and Recovery of Premises Bill designed to bring order to chaotic landlord-tenant relations and clamp down on exploitative practices by estate agents.
The proposed legislation, currently before the Lagos State House of Assembly, seeks to overhaul the existing 2011 Tenancy Law by introducing stricter rules on rent payments, agency commissions, and dispute resolution mechanisms.
It comes as many Lagosians continue to face double-digit rent increases, demands for multiple years’ rent upfront, and opaque charges from unregulated middlemen.
A standout provision in the bill is the capping of estate agency fees at a maximum of 5% of one year’s rent — a sharp reduction from the 10%, 15%, or even higher fees commonly charged.
Agents must now be formally registered with the Lagos State Real Estate Regulatory Authority (LASRERA), remit collected rent to landlords within seven working days, and issue proper receipts. Violations could attract fines of up to ₦1 million, imprisonment of up to two years, or both.
Key Highlights of the Proposed Bill:
Rent Advance Limits: Restrictions on how much rent landlords or agents can demand upfront from sitting and new tenants.
Rent Hikes: Tenants gain the right to challenge what they consider unreasonable increases in court.
Agent Conduct: Bans double-dipping (collecting from multiple prospective tenants for the same property) and mandates transparency.
Dispute Resolution: Streamlined processes for recovery of premises while offering better tenant protections.
Special Adviser on Housing or relevant officials have described the bill as a balanced attempt to protect tenants without stifling legitimate property investment in Africa’s largest city.
Mixed Reactions Expected:
Tenant advocacy groups are likely to welcome the reforms as long-overdue relief in a city where housing costs have outpaced many residents’ earnings.
However, some estate agents and landlords’ associations may push back, arguing that the fee cap could discourage professionals from the sector amid rising operational costs and risks.
The bill’s progress will be closely watched as it undergoes public hearings and legislative scrutiny. If passed, it could set a new benchmark for rental regulation across other Nigerian states facing similar housing pressures.
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