Oyo State Initiates Stakeholder Talks to Regulate Rents and Agent Commissions

Oyo State Government meets with Estate Agents to Address The escalating cost of Rent in The State

The Oyo State Government has commenced formal stakeholder engagements with estate agents to address the escalating cost of rent and curb the exploitative practices of intermediaries within the state’s housing sector. The initiative, announced on Thursday, 22 January 2026, aims to establish a sustainable regulatory framework that balances the interests of property owners, agents, and tenants.

According to a statement issued by the Commissioner for Information and Civic Orientation, Dotun Oyelade, the government met with the Estate Rent and Commission Agents' Association to discuss the standardisation of professional fees. The Commissioner for Lands, Housing, and Urban Development, Mr Williams Akin Funmilayo, led the government delegation, noting that the administration has received a rising volume of complaints regarding arbitrary rent hikes, excessive inspection fees, and non-standardised commission charges.

While Mr Akin Funmilayo clarified that the state does not intend to impose direct price controls on rents set by property owners, he emphasised that the government holds a constitutional mandate to regulate professional practices that adversely affect the welfare of residents. He further revealed that the Oyo State House of Assembly is currently deliberating on legislation designed to provide a legal basis for the regulation of estate agency in the state.

“As a government, we believe regulation is necessary,” Mr Akin Funmilayo stated. “However, it is important that practitioners in the sector contribute meaningfully to the process so that any law enacted is practical, enforceable, and fair to all parties.”

The Ministry has requested the Estate Rent and Commission Agents' Association to submit a comprehensive proposal outlining acceptable commission structures and ethical standards. These recommendations will be reviewed and integrated into the legislative process to ensure the resulting policy is grounded in industry reality.

In response, the Chairman of the association, Mr Mutahir Okekunle, expressed support for the government’s consultative approach. He acknowledged the prevalence of unprofessional conduct among certain practitioners, particularly regarding the use of excessive inspection fees as a tool for exploitation. Mr Okekunle committed the association’s cooperation in identifying "unscrupulous members" and urged the state to provide support in enforcing a registration system to ensure only certified agents operate within the market.

This move comes at a critical time for the Oyo State real estate market, as urban centres like Ibadan face significant inflationary pressure on housing. By moving toward a regulated environment, the state government seeks to mitigate the financial burden on low and middle income earners while professionalising the real estate service sector. The proposed law is expected to introduce much-needed transparency into property transactions and restore public confidence in the agency profession.