Lagos Cracks Down on Illegal Real Estate Fees and Rising Rents
The Lagos State Government is intensifying efforts to make housing more affordable by cracking down on illegal rental charges and pushing for lower rent prices. Authorities have officially declared fees such as "caution fees" and "inspection fees" unlawful, urging real estate industry leaders to collaborate in easing the financial strain on tenants.
In a public statement issued by Ganiu Lawal, Deputy Director of Public Affairs, the government condemned the practice of imposing unauthorized fees, noting that such actions not only exploit tenants but also damage the reputation of property managers and landlords.
Key stakeholders — including the Nigerian Institution of Estate Surveyors and Valuers, the Real Estate Developers Association of Nigeria, and the Association of Estate Agents in Nigeria — recently met with state officials to address these issues. The meeting, jointly presided over by Commissioner for Housing Moruf Akinderu-Fatai and Special Adviser to the Governor on Housing Barakat Odunuga-Bakare, focused on tackling arbitrary rent hikes and excessive agent commissions while promoting ethical standards in the real estate sector.
Akinderu-Fatai emphasized the difficulties many families face in finding affordable housing, citing rising rents and hidden transaction costs as major barriers. He reaffirmed the government’s support for more flexible rent payment options, such as monthly and quarterly plans, in line with tenancy regulations.
Odunuga-Bakare also referenced the Lagos State Tenancy Law of 2015, which caps allowable real estate transaction fees at 10%. She called on industry players to align with government initiatives aimed at making housing more accessible and transparent for residents.
Leaders of the various real estate bodies expressed their willingness to work alongside the government. They pledged to assist in advocacy campaigns and public education initiatives that promote best practices within the property market.
The session concluded with plans to organize a broader stakeholder forum. This upcoming event will involve representatives from across the real estate value chain — including legal experts from the Nigerian Bar Association — to build stronger, collective support for protecting Lagos residents in housing transactions.