Lagos Tenancy Bill 2025 Seeks to Restructure Rental Market, Strengthen Tenant Protections and Agency Practice
Lagos Tenancy Bill 2025: New Reforms to Reshape Rental Market and Protect Tenants
The Lagos State Government is advancing a major reform of the city’s rental framework through the Lagos Tenancy and Recovery of Premises Bill 2025, a proposed legislation aimed at addressing longstanding inefficiencies in the housing market, strengthening tenant protections, and imposing clearer regulatory obligations on landlords and real estate agents. The bill, currently undergoing legislative review, proposes wide-ranging changes intended to reduce exploitation, enhance transparency, and create a more predictable rental environment in Africa’s largest urban centre.
Key Reforms Targeting Market Inefficiencies
The bill introduces several policy measures designed to improve governance within Lagos’ rental ecosystem. It focuses on three core issues: agent regulation, affordability constraints driven by excessive advance rent demands, and the increasing rate of informal eviction practices.
Mandatory Registration and Regulation of Real Estate Agents
The proposed legislation mandates that all real estate practitioners must register with the Lagos State Real Estate Regulatory Authority (LASRERA) before conducting agency activities in the state. This requirement seeks to curb unlicensed operations and unprofessional conduct that have contributed to disputes and market distortions.
Additional provisions include:
A cap of 5% of annual rent as the maximum allowable agency fee.
A requirement that agents remit collected payments to landlords within 7 working days.
Mandatory issuance of receipts and transparent documentation for every transaction.
Agents who violate these conditions may face administrative penalties of up to ₦1 million, imprisonment for as long as two years, or a combination of both sanctions. Analysts expect the reforms to improve accountability and strengthen consumer protection in the real estate brokerage space.
Rent Regulation and Limits on Advance Payments
One of the most significant interventions in the bill addresses the practice of demanding large upfront rent payments, a common challenge for tenants across Lagos. Under the new framework:
New tenants cannot be required to pay more than one year’s rent in advance.
Existing monthly tenants cannot be compelled to pay more than three months ahead.
Violations attract penalties of up to ₦1 million or a maximum of three months’ imprisonment.
The provision aims to reduce the financial burden on households, support housing affordability, and curb the rising number of residents who incur debt or face displacement due to untenable rent demands.
Stricter Penalties for Harassment and Unlawful Eviction
The bill explicitly prohibits landlords from using coercive measures, such as disconnecting utilities, blocking access, or confiscating tenants' belongings, to force tenants out of their homes without a court order. These actions, categorised as illegal eviction attempts, could result in fines of ₦1 million or imprisonment for up to six months.
The bill also strengthens oversight of rent increases. Courts will assess the legitimacy of proposed adjustments by considering prevailing market rates, documented evidence from both parties, and other relevant circumstances. Critically, eviction actions are suspended while such disputes are under judicial review.
Streamlined Dispute Resolution and Tenancy Court Processes
To improve efficiency within the judicial process, the bill introduces measures that accelerate the handling of tenancy-related cases:
Eviction cases may proceed via originating summons, reducing delays associated with full trials.
Courts must schedule hearings within fourteen days of filing, including weekends and public holidays.
Mediation processes are limited to thirty days, ensuring timely resolution while maintaining the opportunity for negotiated settlements.
Housing-sector observers note that the accelerated timelines could significantly ease case backlogs and provide greater clarity to both landlords and tenants.
Enhanced Transparency in Service Charges and Tenant Rights
The legislation establishes clearer obligations for landlords regarding financial transparency:
Landlords must issue itemised statements detailing service charges and security deposit usage every six months.
Security deposits remain refundable except in cases of verified property damage.
Tenants benefit from reinforced rights to privacy, quiet enjoyment of premises, and compensation for approved improvements made to the property. These reforms are expected to reduce disputes and improve trust in lease relationships.
Legislative Progress and Expected Impact
The Lagos Tenancy Bill was introduced to the House of Assembly in July 2025 and passed its second reading on 10 July 2025. It currently awaits detailed scrutiny by the Committee on Housing before full legislative approval.
If enacted, the Bill will:
Reorganise Lagos’ rental market into a more transparent and predictable system.
Provide robust protections for tenants against unfair practices.
Professionalise agency operations and strengthen regulatory oversight.
Improve dispute resolution timelines, reducing the cost and uncertainty associated with tenancy conflicts.
Policy analysts agree that the reforms, once implemented, will support a more sustainable and equitable rental environment in Lagos benefiting tenants, landlords, and practitioners aligned with best practices.
