With the state’s population expanding rapidly, Lagos has struggled with a series of persistent housing challenges: steep advance rent requirements, poorly regulated real estate agents, and eviction disputes that often stretch on for years. The current Tenancy Law, enacted in 2011, has been unable to keep pace with these issues, prompting calls for a significant overhaul.
The new bill attempts to answer those concerns by introducing clearer rules, stronger protections, and stricter oversight across the rental ecosystem. Key provisions include limits on advance rent, a regulatory framework for real estate agents, bans on harassment and illegal evictions, and measures designed to ensure faster and more transparent dispute resolution.
Tighter Oversight and Fee Limits for Agents
A central feature of the proposed law is Section 3, which requires all real estate agents operating in Lagos to register with the Lagos State Real Estate Regulatory Authority (LASRERA). The section also caps agency fees at 5% of annual rent, establishes a seven-day deadline for remitting funds to landlords, and mandates issuance of official receipts.
Penalties for violations are steep — up to ₦1 million, two years’ imprisonment, or both. The measures aim to curb fraud and malpractice in a sector where tenants have frequently lost money to fake or unregistered agents, including a widely publicised 2019 case in which a couple was defrauded of ₦900,000.
One-Year Cap on Advance Rent
A major highlight of the bill is the long-awaited attempt to rein in the practice of demanding two years’ rent upfront. Under the proposed reforms:
- New tenants cannot be required to pay more than one year’s rent in advance.
- Sitting tenants who ordinarily pay monthly cannot be compelled to pay more than three months ahead.
- Charging or paying above these limits becomes an offence punishable by a ₦1 million fine or three months in jail.
If implemented, the provision could significantly ease the financial pressure on low- and middle-income households, although some analysts warn that enforcement may be challenging given Lagos’ high housing demand.
Stronger Safeguards Against Harassment and Eviction
The bill also targets illegal eviction tactics. Sections 10(a) and 43 outlaw “self-help” practices such as disconnecting utilities, removing roofs, blocking entryways, or seizing tenant property. Any eviction without a court order becomes a criminal offence, carrying penalties of up to ₦1 million or six months’ imprisonment.
These provisions respond to frequent complaints from tenants who have faced aggressive eviction methods, especially in informal and high-density neighbourhoods.
Ability to Challenge Excessive Rent Increases
Although rent control is not part of the bill, tenants gain a new right to challenge excessive rent hikes in court. Section 33 empowers judges to determine whether a proposed increase is fair, considering factors such as comparable rents in the area and any specific circumstances affecting the property.
Importantly, landlords cannot evict a tenant while such a case is being heard, a safeguard expected to prevent retaliatory action.
Faster, More Transparent Court Processes
Sections 20–24 streamline tenancy-related court procedures. Cases may be initiated through originating summons, hearings must begin within 14 days, and courts may sit virtually, on weekends or on public holidays when necessary. Mediation is limited to 30 days.
Beyond dispute resolution, the bill promotes better transparency in the handling of service charges and security deposits. Landlords must provide an account of such charges every six months, and deposits must be returned unless there is documented damage.
Additionally, Section 7 affirms fundamental tenant rights — including privacy, peaceful occupation, equal access to common areas, and compensation for approved improvements.
Where the Bill Stands
Introduced in July 2025, the Lagos State Tenancy and Recovery of Premises Bill passed second reading on July 10 and was forwarded to the House Committee on Housing for further consideration. As of late 2025, it remains a draft and has not yet been enacted into law.
If passed, the bill would represent one of the most sweeping updates to Lagos’ rental framework in over a decade, potentially reshaping housing dynamics for millions of residents.