Lagos’ real estate sector has been alive with discussions about the Lagos State Tenancy and Recovery of Premises Bill 2025 – a major reform initiative aimed at modernising rental regulations in the state.

Lagos, like many fast-growing cities, faces persistent housing challenges: excessive advance rent demands, unregulated real estate practices, and prolonged eviction disputes. These issues have outgrown the capacity of the existing Tenancy Law enacted in 2011.

The new bill seeks to address these problems by reshaping landlord-tenant relations, capping advance rent, regulating agents, providing tenants with legal protection against unfair rent increases, and introducing faster and more transparent eviction procedures.

Stricter Oversight of Agents and a 5% Fee Cap

Section 3 of the bill mandates that all real estate agents in Lagos must register with the Lagos State Real Estate Regulatory Authority (LASRERA). It also places a strict limit on agency fees – agents cannot charge more than 5% of annual rent.

Funds collected for landlords must be remitted within seven working days, and agents are required to issue proper receipts to ensure transparency. Violations attract penalties of up to ₦1 million, two years imprisonment, or both.

These measures are designed to curb longstanding abuses by unregistered and fraudulent agents. Lagos tenants have repeatedly fallen victim to double-renting scams, inflated commissions, and outright fraud. A notable example is a 2019 case reported by PREMIUM TIMES in which a newly wedded couple lost ₦900,000 to fake agents.

The new rules aim to professionalise the sector and protect tenants from exploitation.

One-Year Limit on Advance Rent

One of the most anticipated reforms addresses the widespread practice of demanding two years’ rent upfront. Under the new bill:

• New tenants cannot be asked to pay more than one year in advance.
• Sitting tenants who normally pay monthly cannot be forced to pay more than three months in advance.

Offering or accepting rent payments above these limits becomes an offence punishable by a ₦1 million fine or three months imprisonment.

Many residents consider this provision transformative, as exorbitant advance rent has driven many into debt and homelessness. However, some observers note that high housing demand might still affect practical enforcement.

Ban on Harassment and Illegal Evictions

Sections 10(a) and 43 prohibit landlords from using “self-help” eviction tactics such as removing roofs, cutting water or electricity, blocking access, or seizing tenant property. Evicting a tenant without a court order becomes a criminal offence.

This responds to widespread reports of landlords locking out tenants, breaking into their apartments, or deploying thugs during disputes. Offenders risk ₦1 million fines or six months imprisonment.

Tenants Can Now Challenge Unfair Rent Increases

Although the bill does not regulate rent prices, it gives tenants the right to challenge unreasonable rent hikes in court.

Section 33 allows the court to assess whether an increase is justified by considering:

• Rent levels in similar areas
• Evidence presented by both parties
• Any special circumstances related to the property

Importantly, landlords cannot evict a tenant while such a case is ongoing. This provision offers critical protection in a state where landlords often raise rent by 50–200% without warning.

Faster Court Processes for Tenancy Disputes

Sections 20–24 introduce faster legal processes for filing and resolving tenancy matters. Cases can now be filed via originating summons, hearings must be scheduled within 14 days, and courts may sit on weekends, public holidays, or virtually. Mediation is capped at 30 days.

This is a significant improvement over the current system where eviction cases often drag on for years.

The bill also enhances transparency in the management of refundable charges. Under Section 12, landlords must provide tenants with an account of how service charges and security deposits are used every six months, and deposits must be refunded except in documented cases of damage.

In addition, Section 7 affirms tenants’ rights to privacy, peaceful enjoyment of the property, use of common areas, and compensation for approved improvements.

Status of the Bill

Introduced in July 2025, the Lagos State Tenancy and Recovery of Premises Bill passed second reading on 10 July and was referred to the Committee on Housing for further review. However, as of late 2025, it remains a draft and has not yet become law.

Source; Vanguard News