Lagos Reviews Tenancy Law to Address Rent Demands and Agency Fees
The Lagos State Government has revised its tenancy regulations in an effort to curb rising rent demands, multiple agency charges, and other practices that burden tenants across the state.
The new provisions, announced this week, seek to strengthen tenant protection and balance landlord–tenant relationships in Nigeria’s most populous city.
Under the updated law, landlords cannot demand more than three months’ rent in advance from existing tenants. Tenants are equally prohibited from committing to more than three months upfront. These caps are designed to create uniformity and prevent excessive rent demands across the market.
The reforms also mandate that landlords must issue rent receipts, with non-compliance attracting a ₦10,000 fine. Furthermore, tenancy agreement fees are now capped at 10% of a tenant’s annual rent. Any charge above this threshold is considered a violation of the law.
Tackling Rising Rent Pressures
The Lagos property market has faced sustained upward pressure in recent years, with high population growth, rapid urbanisation, and limited housing supply driving demand. As a result, tenants have reported being compelled to pay advance rents of up to two years, alongside additional charges from agents and lawyers.
By tightening the law, the government aims to ease financial strain on households and create a more transparent framework for residential leases.
Enforcement and Compliance
According to the Lagos State Ministry of Housing, implementation will be closely monitored, and defaulters both landlords and agents could face penalties. The government emphasised that the review aligns with its broader housing agenda to ensure affordability and access for residents, particularly low- and middle-income earners.
Real estate professionals, however, have expressed mixed views. While tenant advocacy groups have welcomed the move as a step towards fairness, some landlords argue that economic realities such as inflation and rising construction costs make multi-year rent demands unavoidable.
Implications for Investors and Developers
For property investors, the amendment introduces both risks and opportunities. Stricter regulation may reduce upfront cash flow from long-term rent advances, but it could also improve market liquidity by broadening access to rental housing. Developers may also find increased demand for smaller, more affordable units as tenants gain confidence under the revised protections.
Looking Ahead
The success of the new tenancy law will depend largely on enforcement. If effectively implemented, it could set a precedent for rental regulation in other Nigerian states grappling with similar affordability challenges. For now, industry observers will be watching closely to see whether the law strikes the intended balance between protecting tenants and sustaining investment in Lagos’s housing sector.
