Lagos, Nigeria – August 18, 2025
The Lagos State Commissioner for Housing, Hon. Moruf Akinderu-Fatai, has described a proposed tenancy regulation bill currently before the Lagos State House of Assembly as a “fundamental” and transformative law aimed at ensuring fairness, transparency, and accountability in the state’s rental housing market.
Speaking on the bill titled “A Bill for a Law to Regulate the Relationship Between Landlords and Tenants, Including the Procedure for the Recovery of Premises in Lagos State, and for Other Connected Matters,” the Commissioner said the legislation is designed to address persistent issues in landlord-tenant relationships, including rising rent burdens and frequent disputes.
“This is a fundamental bill,” Hon. Akinderu-Fatai said. “You can see that many Lagosians took part in the process because they are directly affected. It’s a fact that people are spending as much as 33% of their income on rent. That’s a serious burden.”
He emphasized that the bill strikes a balance by protecting the interests of both landlords and tenants, ensuring that all parties understand their rights and responsibilities.
“There have been so many conflicts between landlords and tenants, and this bill will ensure that everyone knows their rights,” he noted. “It protects both the tenant and the landlord.”
The Commissioner also highlighted a concerning trend in the real estate sector, where property owners are increasingly opting to sell their buildings outright rather than rent them out, citing the complexities and risks associated with tenancy agreements.
“People are shying away from renting. Once they build, they just want to sell,” he said. “This bill will encourage more people to return to renting by providing legal backing and reducing the fear of conflict or loss.”
Among its key provisions, the bill proposes:
- Capping agency commissions at 5% of one year’s rent
- Mandating agents to remit rent within seven working days
- Prohibiting double collection of rent for the same property
- Restricting advance rent demands to a maximum of three months for monthly tenants and one year for annual tenants
- Imposing penalties of up to two years in prison or a ₦1 million fine for unregistered or erring property agents
The proposed law aims to introduce order and transparency into Lagos State’s often chaotic rental landscape, offering much-needed relief to tenants and assurance to property owners.
Once passed, the legislation is expected to serve as a model for housing reforms in other states, while creating a more predictable and investor-friendly real estate environment in Lagos.
