Lagos to Slash Tenancy Fees by 5%

 By: Manoah Kikekon 

Lagos State House of Assembly 

The Lagos State House of Assembly has taken a major step to reduce the financial strain on tenants by proposing a cut in agency fees from 10% to just 5% of annual rent. 

This change is part of the new Tenancy Bill, officially titled ‘A Bill for a Law to Regulate the Relationship Between Landlords and Tenants.

During a public hearing at the Assembly Complex, Speaker Mudashiru Obasa (represented by lawmaker Stephen Ogundipe) announced that any agent demanding more than 5% commission will face serious consequences including a full refund to the tenant, two years in jail, or a ₦1 million fine. The move comes amid growing concerns over exploitative practices by landlords and real estate agents.  

Obasa revealed alarming statistics: Lagos’ housing deficit has surged to 3.4 million units in 2025, up from 2.95 million in 2016. With over 70% of residents renting, many spend 40-60% of their income on rent, making affordability a critical issue. The new bill seeks to regulate tenancy agreements, rent payments, property maintenance, and eviction processes to protect tenants.  

Key Highlights of the Tenancy Bill are, Clear eviction rules to prevent arbitrary removal of tenants. Mandatory mediation to resolve disputes faster and cheaper. Restrictions on excessive rent hikes. Faster court processes, including virtual hearings and e-filing. Six-month timeline for resolving tenancy disputes  

While government officials, including Housing Commissioner Moruf Akinderu-Fatai and Justice Commissioner Lawal Pedro, praised the bill for boosting investor confidence and speeding up justice, real estate professionals pushed back. The Estate Surveyors and Valuers Registration Board of Nigeria argued that the 5% fee cap clashes with industry standards and called for revisions.  

The bill has now entered a review phase, with lawmakers considering feedback from tenants, landlords, legal experts, and real estate bodies. If passed, it could bring much-needed relief to millions of renters while reshaping Lagos’ housing market.  

(NAN)