Lagos Tenancy Reform 2026: What Tenants, Landlords Must Know

Lagos Tenancy Reform 2026: What Tenants and Landlords Must Know

LAGOS, Nigeria – The Lagos State government has officially unveiled plans to introduce a new tenancy law aimed at curbing arbitrary rent increases, illegal charges, and exploitative practices by estate agents across the state. The proposed legislation, currently before the State House of Assembly, is expected to bring major reforms to the real estate sector, including a cap on agency fees, mandatory registration for agents, and faster dispute resolution. Commissioner for Housing, Moruf Akinderu-Fatai, disclosed the details during the 2026 Ministerial Press Briefing held in Alausa, Ikeja. He described the bill as a direct response to growing complaints from tenants over excessive rent hikes, fraudulent fees, and unethical conduct by unregistered operators. Once passed, the law will apply to all parts of Lagos State without exception.

One of the most significant provisions of the bill is the regulation of estate agency fees. According to the commissioner, the Lagos State government has consistently maintained that agency fees should not exceed 10% of the total annual rent payable by tenants. However, earlier legislative discussions from August 2025 indicated that the Assembly was considering an even stricter cap of 5%. The final figure remains under debate at the committee stage. Currently, it is common practice for agents in Lagos to charge 10% agency fee plus 10% legal or agreement fee, a model the new bill seeks to eliminate.

Under the proposed law, all estate agents operating in Lagos will be required to register with the Lagos State Real Estate Regulatory Authority (LASRERA) . Operating without registration will become a criminal offense once the bill is passed. The move targets unregistered agents accused of charging excessive fees, fraudulent sales of properties (such as selling one property to multiple buyers), and withholding tenant rents. Penalties for violations could include fines of up to ₦1 million and two years imprisonment.

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The bill also seeks to curb arbitrary rent increases, which have become a major pain point for tenants in Lagos. While the full details on rent hike limits are still being finalized, early drafts of the bill also proposed banning landlords from demanding more than one year’s rent in advance from new tenants. This would replace the common practice of demanding two or more years upfront.

To address the slow pace of justice in housing matters, the proposed law introduces special court sittings for tenancy-related disputes. Courts will now sit on weekends and public holidays specifically to fast-track landlord-tenant cases. This is designed to prevent prolonged evictions or unfair lockouts. However, the commissioner added one important condition: tenants who wish to take legal action against their landlords must first provide proof of rent payment and updated utility bills before initiating court proceedings.

Even before the bill becomes law, Akinderu-Fatai revealed that LASRERA has intensified enforcement against fraudulent estate agents. Between 2025 and 2026, the agency recovered over ₦270 million from fraudulent operators. This demonstrates the government’s readiness to enforce transparency in the sector. “The Sanwo-Olu administration is determined to restore sanity, transparency, and accountability in the real estate sector while protecting residents from exploitation,” the commissioner said.

It is important to note that the proposed tenancy bill is not yet law. The current stage is the committee stage at the Lagos State House of Assembly. The next steps require the bill to pass committee review, then be passed by the Assembly, and finally receive the governor’s assent. Until then, the Lagos State Tenancy Law of 2011 remains the legally binding framework. Residents, landlords, and agents are advised to follow updates from LASRERA and the Ministry of Housing for official announcements.

Lagos Tenancy Reform 2026: What Tenants and Landlords Must Know