Under a tense atmosphere, legislators at the Lagos State House of Assembly debated over a Tenancy Bill regarding the power shift between tenants and landlords, including realtors.
In recent years, Lagos’ housing market has devolved into an exploitative relationship between greedy landlords and powerless tenants, thanks to a series of loopholes.
Nigeria’s law regarding rental fees stipulates that agencies and legal professionals may each charge up to 10% of annual rent—or 20% of the actual rent collectively.
In practice, though, tenants are routinely slammed with fees exceeding this limit, bearing such labels as “caution fees” and “drafting costs,” among others.
Today the need to keep a roof over their heads shaves a huge chunk of most Lagosians’ income. Recent data suggest that over 70% of Lagos residents are tenants, who spend 40–60% of their income on rent, double the guideline of 30%.
The inevitable toll of this extortion is devastating, as many residents share on social media.
In response, the proposed Tenancy Bill aims to arrest this egregious practice. In compliance with the country’s current law on tenancy charges, lawmakers are proposing a cap: the agreement as well as legal fees must not exceed 10% of the annual rent.
To put this in perspective, for a tenant paying ₦1 million a year in rent, extra fees will be pegged at ₦100,000 in total. Any charges higher than this could be met with sanctions.
That’s not all. The bill curbs landlords’ greed for lump-sum payments by limiting advance rent to just one year. It also mandates receipts upon payment, enabling faster refund of deposits. Eviction and deposit procedures are standardised to prevent arbitrary or unfair treatment.
Lagos State’s regulatory body, LASRERA, has already swung into action, preaching against illegal house agents and the new Tenancy Bill in awareness campaigns across the city’s neighbourhoods.
For a city that is home to more than 17 million people, the stakes are even higher. 60% renters would translate to over 11.9 million people, squeezed by lax legal protections and soaring costs
This bill, if passed into law, would become an economic and social lifeline. Lower fees and transparent practices could shift rental markets from being exploitative, creating an equitable system in place.
The benefits are even far-reaching. Along with the sense of stability and relief for tenants, fair-minded landlords and new investors could be scaled back by transparent, predictable rules.
At its core, this bill is about letting Lagosians thrive and invest in better things. When people are not perpetually on edge about the next arbitrary fee or rent hike, they can direct energy toward building businesses, pursuing education, or simply living without constant financial anxiety.
The Lagos State House of Assembly is debating a Tenancy Bill aimed at addressing exploitative practices by landlords and realtors in the housing market. Currently, tenants in Lagos, where over 70% of residents are renters, are burdened with excessive fees that exceed the legal limits, often paying 40-60% of their income on rent—much higher than the recommended 30%. The proposed bill seeks to cap additional charges, like agency and legal fees, at 10% of annual rent, thereby relieving tenants of exorbitant costs, such as fictitious "caution fees."
The bill also intends to limit advance rent payments to one year and mandates the issuance of receipts, enabling smoother deposit refund processes and preventing arbitrary evictions. The Lagos State Real Estate Regulatory Authority (LASRERA) is actively promoting the bill and educating city residents on their rights to combat unscrupulous practices by illegitimate house agents.
If enacted, the bill would significantly impact Lagos's 17 million residents by offering economic and social reprieve, possibly fostering a more equitable housing market. Transparent regulations are expected to benefit not only tenants but also fair-minded landlords and potential investors, encouraging stability and empowering residents to focus on personal growth and development without the constant threat of financial exploitation.
