Lagos is preparing a major overhaul of its rental housing system as the state government pushes forward a new tenancy bill designed to rein in exploitative practices in the real estate market, especially rising rents, questionable agency fees, and fraudulent operators.
The initiative was disclosed during the 2026 Ministerial Press Briefing held in Alausa, Ikeja, where the Commissioner for Housing, Moruf Akinderu-Fatai, outlined the scope and intent of the proposed reforms currently under legislative review.
He explained that the bill, which is now at the committee stage at the Lagos State House of Assembly, is aimed at responding to long-standing complaints from residents about instability in rental pricing and unethical conduct among some property intermediaries.
According to him, the government is seeking to “sanitise the housing and real estate sector in Lagos” through stronger regulation and enforcement mechanisms that will reshape how tenancy relations are managed across the state.
Crackdown on unregistered agents and hidden charges
A central feature of the proposed law is stricter regulation of estate agents operating within Lagos. The bill would require compulsory registration with the Lagos State Real Estate Regulatory Authority (LASRERA), making it illegal for unregistered individuals to operate in the sector.
The commissioner warned that once the law is passed, operating outside the regulatory framework would attract penalties, signaling a tougher stance on informal property dealings that have long been blamed for tenant exploitation.
He stressed that the reform is particularly focused on curbing the activities of agents accused of charging excessive fees, engaging in double allocation of properties, and exploiting unsuspecting tenants.
In his words, the government is targeting “unregistered agents accused of exploiting tenants through excessive charges, multiple sales of properties and other fraudulent transactions.”
Faster dispute resolution and court requirements for tenants
Beyond regulation of agents, the bill also proposes changes to how tenancy disputes are handled in court. One notable innovation is the introduction of weekend and public holiday sittings for tenancy-related cases, a move designed to reduce delays in resolving landlord-tenant conflicts.
The commissioner noted that the reforms are intended to make dispute resolution faster and more accessible, especially for residents who often struggle with prolonged legal processes.
Under the proposed framework, tenants who wish to take legal action against landlords will also need to provide evidence of rent payments alongside updated utility bills before filing court cases. Officials say this is intended to strengthen documentation and reduce frivolous claims.
LASRERA enforcement and recovery efforts
The Lagos State Government also highlighted ongoing enforcement actions already being carried out by LASRERA against fraudulent operators in the sector. According to the commissioner, the agency has recovered significant sums from illegal dealings over the past year.
Akinderu-Fatai disclosed that LASRERA had recovered more than N270 million from fraudulent estate agents between 2025 and 2026, reflecting increased regulatory activity even before the new law is passed.
Authorities believe these enforcement efforts are beginning to deter bad actors in the market, though they argue that a stronger legal framework is still needed to sustain compliance.
Rent limits and broader housing reform agenda
The government reaffirmed its long-standing position on agency fees, maintaining that estate agents in Lagos should not charge more than 10 per cent of the total annual rent.
Officials say this benchmark is part of a broader effort to reduce the financial burden on tenants, many of whom have faced rising rent pressures in recent years due to demand-supply gaps in the housing market.
The commissioner reiterated that the Sanwo-Olu administration remains committed to improving transparency and affordability in property transactions, while also making Lagos more attractive for legitimate real estate investment.
He emphasized that the administration’s goal is to ensure a more balanced system where both tenants and landlords operate within clear, enforceable rules that protect all parties and reduce exploitation across the sector.