For millions of Lagos residents, housing means more than having a roof over their heads. It’s often the heaviest expense.
The Lagos State House of Assembly recently estimated that more than 70% of the population in the state are tenants, many of whom pay between 40 and 60% of their monthly income on rent.
This percentage exceeds the global benchmark of 30%. To arrest the hike, lawmakers are pushing for a new tenancy bill that eases relations between the landlords and tenants and brings stability to the housing market.
The bill seeks to establish strong guidelines on tenancy agreements, rent collection, agency fees, and dispute resolution.
The bill is designed to establish a framework of fairness between landlords and tenants. Its provisions seek to clarify rights and obligations, curb arbitrary evictions, strengthen mediation processes, and fast-track housing-related court cases, making the rental system more transparent and accessible.
A tense relationship
For many decades, relations between Lagos landlords and tenants have been strained. Landlords argue that rising costs of construction material, property tax, and maintenance make it unavoidable to increase the rent more frequently.
For the average citizen, the housing crisis is more than an abstract policy issue; it’s a daily struggle that defines the nature of their existence.
Families move often from one district to another in search of a little lower rent, and professionals even postpone marriage or starting a family because of the cost of accommodation.
Landlords, on the other hand, point to rising building material prices and maintenance of buildings, claiming that without rents, even small-scale maintenance is not possible.
Abuja tenants equally lament that they are trapped in a cycle of annual rent payments, which take up the lion’s share of their income. In Maitama, Samirat Abdullah explained how her family’s rent was raised by ₦400,000 within two years.
“We had just settled the last increase when the landlord served another notice; I had to use my entire annual bonus and borrow from my cooperative to pay. It feels like we are working just to keep a roof over our heads,” she said.
But landlords tell a different story. Richard Achike, who owns a block of flats in Abuja, argued that rising building costs leave them with little choice.
“A bag of cement that sold for ₦2,600 a few years ago now sells for almost ₦10,000, and iron rods have more than tripled, maintenance and property tax are also higher, if rents don’t reflect these costs, we risk running at a loss. Many landlords are actually struggling more than tenants realise,” he explained.
This tug-of-war between affordability and sustainability is the dilemma policymakers now face in Abuja and across Nigeria—how to create a legal and economic framework that balances the needs of tenants who demand stability with the realities of landlords who shoulder the burden of soaring costs.
Why the bill matters
Housing in Lagos is a numbers game stacked against tenants. The city’s population rose from about 21 million in 2016 to around 24 million by 2025, adding 750,000 households. Yet, rental housing supply remains largely unchanged, resulting in a housing deficit of approximately 3.4 million units.
With government projects and a reported 15% rise in housing units since 2016, the majority of Lagosians still depend on private landlords. With no standard framework in place, informal practices have taken over, from year-long rent requests to usurious agency fees.
The bill is being promoted as a potential turning point in Lagos’s housing landscape, it is expected to introduce stricter regulations on lawsuits, set clearer terms for appeals, and standardise agency charges. The aim, according to the legislative brief, is to produce a law that is exhaustive, fair, and enforceable.
What solutions are emerging locally?
While the tenancy bill is still outstanding, Lagos has not been left entirely without attempts to address the housing crisis.
The state has, through the years, experimented with different policies and systems that have lessons for the ongoing reform processes. These innovation enclaves attest that change, while slow, is attainable.
One of the initial actions was the Tenancy Law of 2011, which prohibited landlords from demanding over one year’s rent from new tenants and six months from existing tenants.
Although it was unevenly enforced and landlords made a lot of efforts to get around it, the law set a precedent. It showed that legislative backing could prove effective in landlord–tenant relations, although the complete potential of the law was never realised.
One significant intervention has been the Rent-to-Own programme under the Lagos Home Ownership Mortgage Scheme (LagosHOMS). It was initiated in the Babatunde Fashola administration and followed by subsequent administrations.
The programme facilitates owners acquiring houses by installment payments within a ten-year span, while the programme has not reached the scale needed to solve the housing deficit, it provides a model for how the government can relieve pressure on the rental market.
In addition to law and mortgage schemes, Lagos has also depended on Alternative Dispute Resolution, or ADR, facilities to resolve landlord-tenant disputes.
Centres such as the Lagos Multi-Door Courthouse have resolved hundreds of disputes through mediation in a quiet manner. Such centres offer a more rapid and less confrontational process than prolonged court battles, offering tenants and landlords a fairer forum for resolving complaints.
These developments, while modest compared to the size of demand, point to the possibility of partnership to assist in resolving Lagos’s chronic shortage of housing.
The road ahead
The Lagos tenancy bill is no panacea, experts say, but its success would rest on broader issues such as ongoing investment in affordable housing, landlord subsidies, and public education campaigns to ensure that tenants are aware of what their rights are.
However, the bill is among the most concrete efforts in years to tackle a crisis that afflicts nearly every Lagosian.
If enforced as intended, the law should slow down arbitrary rent hikes, make the eviction process fairer, and enhance mediation rather than confrontation.
Together with existing rent-to-own transactions and future public-private housing partnerships, it signals a gradual transition to more structured and equitable housing in Lagos.
Housing in Lagos is a critical issue with rent consuming 40 to 60% of residents' monthly income, exceeding the global benchmark of 30%. The heavy expenses are prompting new legislation aimed at creating balanced relationships between tenants and landlords, with guidelines on tenancy agreements, rent collection, and dispute resolution. As housing costs continue to rise, partly due to increased prices of construction materials and maintenance costs, landlords claim they have no choice but to hike rents, while tenants struggle with affordability, often shifting homes or delaying personal life choices due to financial constraints.
The Lagos tenancy bill seeks to introduce structure and fairness in the rental market, amid a housing deficit of 3.4 million units. The population surge and stagnant housing supply have exacerbated the crisis. The government has initiated various interventions, like the Tenancy Law of 2011, which placed limits on rent demands, and the Rent-to-Own program under LagosHOMS, allowing homeowners to pay in installments over ten years. Alternative Dispute Resolution centers offer mediations to resolve landlord-tenant disputes, providing a constructive alternative to lengthy court processes.
While the new tenancy bill is not a complete solution, it is a significant step towards addressing a pervasive housing crisis. It aims to stabilize rent increases, improve eviction fairness, and promote mediation. This, combined with rent-to-own schemes and potential public-private partnerships, signals a shift towards a more organized and equitable housing system in Lagos. The bill's impact will depend on investments in affordable housing, subsidies, and public education, empowering tenants with knowledge of their rights.
