Kogi Assembly Moves to Regulate Rent Increases, Agency Fees

Kogi moves to regulate rental market

The Kogi State House of Assembly is advancing legislation to regulate tenancy arrangements, control arbitrary rent increases and limit excessive agency charges as rising housing costs make accommodation increasingly difficult for residents.

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The proposed Kogi State Tenancy Law 2025 would also require estate agents operating in the state to register with the Kogi Ministry of Housing and introduce safeguards for both landlords and tenants. Lawmaker Akus Lawal, representing Ankpa 1 State Constituency, disclosed the details on August 13, 2026, after the House received the Public Hearing report on the bill.

Proposed law targets excessive agency charges

The legislation seeks to address the multiple charges tenants often pay when securing accommodation.

Lawal said some tenants currently pay between 15 per cent and 20 per cent in agency fees, caution fees and other related charges.

Under the proposed framework, these charges would be consolidated into a single-use fee of less than five per cent, potentially reducing the upfront cost of renting a home in the state.

The proposal would represent a significant reduction for tenants who currently face several charges on top of annual rent when securing accommodation.

Estate agents would require registration

The proposed law would require all estate agents operating in Kogi to register through the state Ministry of Housing.

According to Lawal, the registration system would help the government identify genuine property agents, regulate their activities and improve security within the property sector.

The measure could also provide a clearer framework for accountability where disputes arise between tenants, landlords and agents.

For the property market, formal registration could help reduce the activities of unregulated operators and improve transparency in rental transactions.

Bill seeks to curb arbitrary rent increases

The proposed legislation would also place restrictions on arbitrary increases in rent.

Lawal said landlords would not be permitted to increase rents without justification, particularly where there has been no corresponding improvement or renovation of the property.

The provision seeks to establish greater predictability for tenants while preserving landlords' ability to adjust rents where legitimate improvements or other justifiable circumstances warrant an increase.

Proposed law also protects landlords

The bill is not designed solely around tenant protection.

Lawmakers also want to address cases where tenants deliberately damage rental properties or refuse to vacate after the expiration of their tenancy agreements.

Under the proposal, tenants found to have deliberately damaged properties could be required to restore them to an acceptable condition before leaving, subject to verification by the landlord.

The legislation also proposes fines and possible imprisonment for tenants found culpable of deliberate property destruction.

The approach reflects the Assembly's stated objective of creating a more balanced legal relationship between landlords and tenants.

Housing supply remains central to affordability

Beyond regulating the rental market, the Kogi Government is also working to increase the supply of housing units, particularly for civil servants.

Lawal said increasing housing supply alongside effective tenancy regulation would help reduce the pressure created by rising rents and improve access to decent accommodation.

This is significant because regulation alone cannot resolve a structural shortage of housing.

Where demand continues to exceed available supply, restrictions on rent increases may provide short-term relief for existing tenants but could also create challenges for landlords and developers if returns no longer reflect operating and construction costs.

Regulation could reshape Kogi's rental market

If enacted and effectively implemented, the proposed law could introduce greater structure into Kogi's rental market.

A regulated agency-fee framework would reduce the upfront financial burden on prospective tenants, while agent registration could improve accountability and reduce the risk of fraudulent transactions.

Restrictions on arbitrary rent increases could also provide greater certainty for households planning their accommodation costs.

For landlords, however, the effectiveness of the framework will depend on whether the law provides clear procedures for legitimate rent reviews, property maintenance and recovery of premises.

Implementation will determine the impact

The proposed legislation still requires further legislative consideration before it becomes enforceable law.

Its effectiveness will ultimately depend on the strength of the regulatory institutions responsible for implementation, the registration and monitoring of estate agents, dispute-resolution mechanisms and enforcement against violations.

The government will also need to ensure that regulation works alongside policies designed to increase housing supply.

Without additional housing delivery, the underlying supply-demand imbalance could continue to place upward pressure on rents even with tighter regulation.

Outlook

Kogi's proposed tenancy reforms could significantly change the state's rental market by limiting agency charges, requiring estate-agent registration and restricting unjustified rent increases.

The proposal also recognises that landlords require protection from property damage and unlawful occupation, creating a framework intended to balance the interests of both sides of the rental market.

For the wider housing sector, the most important test will be whether tenancy regulation is accompanied by increased housing supply. If both measures progress together, Kogi could improve rental-market transparency while easing some of the financial pressures facing tenants.

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