The Lagos State House of Assembly is considering a sweeping new tenancy bill that could significantly reshape the relationship between landlords, tenants, and property agents in the state.
The proposed law, which went through a one-day public hearing on Wednesday, aims to update tenancy rules, address housing pressures, and strengthen protections for both renters and property owners.
EDITOR’S PICKS
In this report, EKO HOT BLOG dissects the draft of the bill and explains what residents need to know.
Lower Agency Fees, Clearer Rules
One of the most publicised changes in the bill is the cap on agency commissions. Section 3(4) of the proposed law states that the commission or agency fee on annual rent must not exceed five per cent of the amount paid as one year’s rent.
According to Speaker Mudashiru Obasa, represented by lawmaker Stephen Ogundipe at the public hearing, any agent who collects more than five per cent commits an offence punishable by refund, two years’ imprisonment, a fine of ₦1 million, or both.
The move would effectively cut the prevailing market rate for agency fees on annual rent from 10 per cent to five per cent. Professional bodies have pushed back, warning that the provision could clash with established industry charges.
Why the Bill Matters Now
Obasa told stakeholders that Lagos’ housing deficit has grown by 15 per cent in less than a decade, from 2.95 million units in 2016 to 3.4 million units in 2025. He also noted that over 70 per cent of Lagos residents are tenants, many of whom spend between 40 and 60 per cent of their income on rent.
Against that backdrop, the bill seeks to provide a stronger legal framework for tenancy agreements, rent payment procedures, maintenance responsibilities, and recovery of premises.
Four-Part Structure
Olusegun Ege, chairman of the House Committee on Housing, said the proposed legislation has four parts and 45 clauses. It covers:
- Definitions and Scope – Clarifying terms like “landlord”, “tenant”, “licensee”, and “mesne profits”, while defining the law’s application across residential and business premises in Lagos State.
- Tenancy Rights and Obligations – Outlining rights such as quiet enjoyment and privacy for tenants, and obligations like property maintenance and lawful use for landlords.
- Rent and Payment Rules – Capping advance rent demands from sitting tenants at three months for monthly rentals and one year for yearly rentals, with similar limits for new tenants.
- Dispute Resolution and Enforcement – Introducing clearer eviction procedures, mediation options, and court processes to prevent arbitrary removals.
Stronger Tenant Protections
Under the bill, landlords must not disturb tenants’ quiet enjoyment by cutting utilities, removing roofs, or interfering with access to personal property.
Tenants who improve a property with prior written consent may be entitled to compensation if the tenancy ends before they can fully benefit from those improvements.
The bill also introduces a formal process for challenging unreasonable rent increases. Existing tenants may apply to court for a review if they believe the new rent is excessive, with judges empowered to assess market comparisons and order reductions.
Clearer Eviction and Recovery Process
The legislation sets notice periods depending on the tenancy type—ranging from one week for tenants at will to six months for yearly tenants—unless otherwise stated in the tenancy agreement. It also allows for seven days’ notice in certain arrears cases, abandoned premises, or fixed-term expirations.
Eviction without a court order remains illegal. Any person attempting to forcibly eject a tenant, threaten them into leaving, or damage property to drive them out could face fines of at least ₦1 million and up to six months in custody.
A Push for Mediation
To ease the burden on courts, the bill encourages mediation through the Citizens’ Mediation Centre, Lagos Multi-Door Courthouse, or similar bodies, with a 30-day limit before cases proceed to trial.
Mediation agreements can be converted into consent judgments, making them legally binding.
Next Steps
The bill is still at the legislative stage, with lawmakers considering feedback from the public hearing. If passed, it would repeal the Tenancy Law of Lagos State 2015 and introduce one of the most comprehensive tenancy reforms in the state’s history.
FURTHER READING
For Lagos’ millions of tenants and landlords, the proposed law promises clearer rules, stricter penalties for bad practices, and potentially more affordable access to housing, although not without debate over the agency fee cap and its impact on the real estate market.
Philip Ibitoye is a Special Correspondent with EKO HOT BLOG. Click here to find daily analysis and critical insight on trending issues in Lagos and other parts of Nigeria.
Click here to watch the video of the week below:
