The Lagos State Tenancy and Recovery of Premises Bill 2025 was created to improve the existing Tenancy Law enacted by the Lagos State House of Assembly in 2011. The reform of this Bill marks a pivotal effort to modernize tenancy regulations in Lagos. The scope of its application reaches all parts of Lagos State with the exception of a few areas. This article is designed to focus on the new laws the Bill introduces, which are designed to address longstanding issues such as exorbitant advance rent demands, unregulated real Estate practices, and protracted eviction disputes. The Bill introduces strong measures like rent caps, mandatory agent registration with the Lagos State Real Estate Regulatory Authority (LASRERA), and streamlined dispute resolution mechanisms, amongst other things. As Lagos grapples with housing deficit and high population density, this review examines the Bill's provisions, compares its provisions with the existing Tenancy Law of Lagos State 2011, and assesses its implications for landlords, tenants, and the broader real Estate sector.
Scope of Application
Unlike the Tenancy Law of 2011 which exempted the following areas- Apapa, Ikeja GRA, Ikoyi and Victoria Island from the application of the law, the Lagos State Tenancy Bill of 2025 seeks to regulate tenancy in the whole of Lagos state, both in the rural and urban areas with limited exemptions like residential premises owned by an employer for its staff, residential premises owned by educational institutions for its staff, emergency shelter, residential premises in a care facility, etc.1
Stricter Regulation on Estate Agents
Under the Lagos State Tenancy Bill of 2025, it mandates any person acting as an Agent to be registered under the Lagos State Real Estate Regulatory Authority Law 2021.2 he Bill criminalizes the act of agents collecting rent from more than one person for the same premises, mandates agents to remit monies collected for premises to the landlord within 7 days of collection and limits the percentage to be collected on rent by the agent to 5 percent only, the contravention of which results to repayment of the sum collected, 2years imprisonment or payment of fine to the tune of One Million Naira or both3. This is clearly different from the provisions in the Tenancy Law of 2011, as the Bill seeks to protect both landlord and tenants from exploitation by Agents, clearly and criminalizes contravention of its provisions in this specific section.
Advance Rent
The new Tenancy Bill prohibits the sitting tenant or landlord from offering or demanding advance payment of rent or a new tenant or landlord from offering or demanding advance payment of rent for more than 3 months for a monthly tenancy and a year for a yearly tenancy. This section imposes sanctions for non-compliance, resulting in either a fine of One Million Naira or 3 months imprisonment.4 This is clearly distinct from the present provision of the Tenancy law of 2011, which prohibits the collection of rent for more than 6 months for a monthly tenancy and one year for a yearly tenancy.5
Length of Notice and Service
The new Bill dislodges the obligation of the landlord to serve the erring tenant a Notice to Quit where the tenant is in arrears of rent for more than the prescribed time. The specified provision automatically determines the tenancy of the erring tenant and provides that the landlord should only serve the tenant with a seven (7) days' written Notice of Owner's Intention to Recover Possession6. Service of Notices must be proper, and the Bill introduces a broader process of service on business premises, that is, service may be given to the director or secretary, trustee, senior, principal, or official of the corporate body or by leaving the Notice at the organization's registered or advertised place of business7.
Proceedings and Appeal
Under the proposed Tenancy Bill of 2025, before a tenant can commence an action before either a Magistrate or High Court, the Bill provides that such a tenant shall accompany the Originating Processes with evidence of:
- Up-to-date receipt of payment of rent;
- Up-to-date receipt of payment of utility bills;
- Undertaking to keep the premises in habitable conditions; and
- Undertaking to pay rent and utility bills until the determination of the suit8.
The Bill goes further to state that where the tenant goes on appeal, he shall file with leave of court, and the application must be accompanied inter alia with:
- a copy of the receipt of payment of arrears of rent and utility bills if outstanding,
- a copy of the undertaking to continue the payment of rent or mesne profit and utility bills on the premises until possession is delivered to the landlord, and in the case of the landlord, an undertaking not to disturb the peaceful possession of the tenant until the determination of the appeal9.
The foregoing proves clearly the improvement the Bill seeks to introduce into tenancy practice in Lagos state. Landlords are most favored by this section, as tenants must have paid their rents and arrears before instituting a case against them. This protects the interests of landlords in Lagos State as well as those of the tenants, as landlords must give an undertaking not to disturb the peaceful possession pending the determination of the suit.
Additionally, the tenant may challenge the increase in rent imposed by the landlord by applying to the court to declare such increase as unreasonable, and in determining the action, the landlord may not eject the tenant from the premises until the pending suit is resolved. If the court determines that the rent is unreasonable, the court may order that the increase in the rent be changed to a specified amount after considering the grounds enumerated by the particular section10.
Introduced Virtual Hearing
The new Bill introduces virtual hearing sessions for tenancy matters, giving consideration to the technological age of the time and the convenience of parties and the court11. This new development is not only laudable but progressive as it modernizes dispute resolution and enhances accessibility in the tenancy framework of Lagos State.
Conclusion
The new developments brought about by the Lagos State Tenancy Bill of 2025 will bring great improvement to Tenancy practice in Lagos State, transparency in relationships between Landlords and Agents, regulated activities of registered Agents, and it will also protect the rights and interests of both Tenants and Landlords.
As stated by the Hon. Mudashiru Obasa, Speaker of the Lagos House of Assembly, during the public hearing of the Bill, "over 70 percent of Lagos residents are tenants, with many spending 40 to 60 percent of their income on rent". This concerns the majority of the residents, and thus, careful work must be done to perfect the Bill in order to efficiently improve housing practice in Lagos. With the passing of this Bill, every stakeholder is enjoined to adhere as it protects the rights and interests of landlords, tenants, and Agents, regulating their relationships.
Footnotes
1. Section 2(2a) Lagos State Tenancy and Recovery of Premises Bill, 2025.
2. Section 3 (1) Lagos State Tenancy and Recovery of Premises Bill, 2025.
3. Section 3 (2)(3)(4) and (5) Lagos State Tenancy and Recovery of Premises Bill, 2025.
4. Section 5(1)(2)(3)(4) and (5) Lagos State Tenancy and Recovery of Premises Bill, 2025.
5. Section 4 (1)(2)(3)(4) Tenancy Law of Lagos State 2011.
6. Section 14 (2)(3)(4)(5) Lagos State Tenancy and Recovery of Premises Bill,2025.
7. Section 17 (b) and (c) Lagos State Tenancy and Recovery of Premises Bill, 2025
8. Section 22(5) Lagos State Tenancy and Recovery of Premises Bill,2025
9. Section 25 (c) and (d) Lagos State Tenancy and Recovery of Premises Bill,2025
10. Section 33 Lagos State Tenancy and Recovery of Premises Bill, 2025.
11. Section 32 Lagos State Tenancy and Recovery of Premises Bill, 2025.
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