The Lagos State Government has taken a significant step towards overhauling its housing regulations with the introduction of the Tenancy and Recovery of Premises Bill 2025. This proposed legislation, currently under review in the State House of Assembly, aims to address long-standing grievances in the real estate sector of Africa's most populous city.
Major Reforms in the Proposed Legislation
At the heart of the new bill are provisions designed to reset the power balance between landlords and tenants. One of the most dramatic changes is the strict limit on advance rent payments. The bill makes it illegal for landlords to demand more than one year's rent from new tenants. For existing tenants on a monthly plan, landlords cannot request more than three months of rent upfront. Tenants are also prohibited from offering more than these limits, with violations attracting a fine of up to N1 million or three months imprisonment.
This move targets the notorious practice of demanding two years' rent in advance, a system that has pushed many Lagos residents into severe financial strain. However, real estate experts caution that enforcement may be tested by market forces, especially in high-demand areas like Lekki, Ikoyi, and Ikeja where property scarcity remains a challenge.
Crackdown on Agents and New Fee Caps
The bill introduces stringent regulations for property agents, a group often blamed for exploitative practices. Section 3 mandates that all agents must register with the Lagos State Real Estate Regulatory Authority (LASRERA). It also imposes a strict cap on agency fees at 5% of the annual rent value.
Agents will be required to remit payments collected from tenants to landlords within seven working days and issue proper receipts. Failure to comply carries severe penalties, including fines of up to N1 million, a maximum of two years in prison, or both. This regulation aims to curb widespread issues like fake agents, inflated commissions, and double-renting scams that have plagued the market for years.
Protection Against Illegal Evictions and Rent Hikes
Another critical area addressed by the bill is the protection of tenants from arbitrary eviction. Sections 10 and 43 explicitly criminalize illegal eviction tactics such as removing roofing sheets, disconnecting utilities, blocking access, or seizing tenant property. Landlords found using these "self-help" methods or employing thugs for forcible ejections without a court order face penalties of up to N1 million or six months in jail.
While the bill does not introduce full rent control, it provides a legal mechanism for tenants to challenge unreasonable rent increases. Section 33 allows courts to determine if a hike is excessive by comparing prices in similar neighborhoods and reviewing special circumstances. During such disputes, landlords are barred from evicting the tenant, offering a new layer of security for renters.
Faster Legal Processes and Enhanced Tenant Rights
The proposed law seeks to expedite the often sluggish legal procedures for tenancy disputes. Sections 20 to 24 introduce faster court processes, allowing cases to be filed by originating summons with hearings scheduled within 14 days. Courts may also sit on weekends and public holidays to clear backlogs, and mediation periods are capped at 30 days.
Tenants gain explicit rights to privacy, peaceful occupation, and use of common areas. The bill also increases transparency, requiring landlords to issue bi-annual statements detailing how service charges are used and to return security deposits promptly, except where documented damages exist.
Current Status and Potential Impact
It is crucial to note that the bill remains a draft and has not yet become law. It passed its second reading in July 2025 and is currently before the Committee on Housing for further review. The provisions, however, have already ignited intense debate across Lagos's real estate landscape.
For millions of tenants, the bill represents a beacon of hope for more affordable and secure housing. For landlords and legitimate agents, it introduces a new era of accountability and a stricter regulatory framework. The coming months will determine whether these proposed changes can successfully reshape one of the world's most dynamic and challenging housing markets or if they will spark new legal and economic battles over property rights in Nigeria's commercial capital.
