Introduction
The Lagos housing market remains a paradox: Africa's most dynamic city, yet one of the continent's most punishing rental environments.1 According to the National Bureau of Statistics (NBS, 2024), the headline inflation rate in Nigeria increased to 33.69% in April 2024, compared to 33.20% in March 2024. This represents an increase of 0.49 percentage points. On a year-on-year basis, the headline inflation rate was 11.47 percentage points higher than in April 2023 (22.22%). This indicates an increase in the headline inflation rate in April 2024 compared to April 2023. For many households in Lagos, rent consumes more than 50% of their monthly income, exceeding the United Nations' affordability benchmark of 30%.2
This reality was brought sharply into focus in February 2025 when a social media post by media personality Gbemi Olateru Olagbegi ignited a widespread conversation about the exorbitant cost of housing in Lagos. Olagbegi's simple question, "So you guys are okay with the high rent in Lagos?" resonated deeply with residents who began sharing their experiences of abrupt and substantial rent increases imposed by their landlords. Numerous social media users recounted instances of unexpected and unjustified rent hikes. One user described a staggering 120% rent increase without any prior notification, while another reported a 50% rise in the rent for their self-contained apartment without explanation. Others echoed these frustrations, with one individual stating they had never paid the same rent twice since moving in due to constant increments. Another recounted being forced to relocate after a 100% rent increase, only to face a 50% hike in their subsequent apartment just three months before their lease renewal. The prevailing sentiment was that landlords in Lagos routinely double rent demands and threaten eviction for non-compliance. Even popular cook Sisi Yemmie shared her experience of being hit with a 120% rent increase without warning.3
Addressing the issue of arbitrary rent increases by landlords, Bernard Onigah explained to Foundation for Investigative Journalism (FIJ)4, "To you, it is an arbitrary increase, but to the landlord, it is profit-making. It is a situation that is viewed from different angles, and we often describe it in the best way that suits our interests. The tenant who is at the receiving end imagines the rent is high, but the landlord imagines that, looking at inflation and the market, 'I should be earning a certain amount from this property'. However, this does not mean that the rent rates charged in Lagos are a true reflection of the economic reality of the average Lagosian." 5
This crisis is compounded by a deepening housing deficit. The State of Lagos Housing Market Report (Vol. 3), produced by the Roland Igbinoba Real Foundation for Housing and Urban Development (RIRFHUD), reveals a 15% increase in the housing gap from 2.95 million units in 2016 to 3.4 million in 2025.6 Drawing from field surveys, property analytics, and satellite data, the report offers one of the most comprehensive independent assessments of the Lagos housing sector.7 Its findings highlight widening inequalities: luxury apartments in areas like Lekki, Ikoyi, and Victoria Island remain in high demand despite economic strain, while urban and peri-urban residents struggle for affordable housing. With over 70% of Lagosians living as tenants, many spend 40–60% of their income on rent, a burden particularly severe in the city's upscale districts.
The Tenancy Law of 2011 was Lagos State's first major attempt to regulate the landlord–tenant relationship. 8 However, with a population now exceeding 22 million (growing at 3.4% annually), weak enforcement mechanisms, and persistent inflationary pressures, the law's protections have been steadily eroded.9
In July 2025, the Lagos State House of Assembly introduced the Tenancy and Recovery of Premises Bill,10 intended to repeal and replace the 2011 law. The Bill proposes to tighten rules on rent advances, streamline eviction processes, regulate agent commissions, and even introduce digital dispute resolution. Yet, as with most regulatory reforms, it has triggered mixed reactions: tenants see a possible lifeline, landlords and developers fear reduced investment returns, agents worry about shrinking margins, while the government faces tough questions about enforcement capacity.
Key Provisions and Commentary
Section 2 – Application of the Law
The Bill provides that:
"This Law shall apply to all premises within Lagos State, including business and residential premises unless otherwise specified" (s.2(1)).11
It then exempts employer housing, educational institution housing, emergency shelters, and care facilities (s.2(2)).
Commentary: This ensures broad coverage, but the exemptions may be abused to evade regulation, particularly by corporate landlords disguising residential premises as "staff housing." Tenants argue that protections should be universal, while landlords claim exemptions are necessary to preserve flexibility for institutional accommodation.
Section 3 – Engagement of an Agent
The Bill mandates that:
"Any person to be engaged as an agent, either by the landlord or the tenant, must be duly registered under the Lagos State Real Estate Regulatory Authority Law 2021" (s.3(1)).
It also caps commissions at 5% of one year's rent (s.3(4)) and criminalizes dual collection, non-remittance, or overcharging with penalties of fines up to ₦1,000,000 or two years' imprisonment (s.3(5)).
Commentary: This protects tenants from exploitation where agents often charge 10–15% plus hidden "development levies." However, critics fear many informal agents (estimated at 60% of Lagos rentals) will simply bypass LASRERA registration, creating a parallel unregulated market.
Section 5 – Advance Rent
The Bill makes it unlawful for:
- Sitting tenants to pay more than three months upfront for monthly tenancies or one year for yearly tenancies (s.5(1)-(2));
- New tenants to pay more than one year in advance (s.5(3)-(4)).
Violations attract ₦1,000,000 fine or three months' imprisonment (s.5(5)).
Commentary: This provision strikes at one of Lagos' deepest pains: crippling multi-year rent advances. While some tenants welcome the move, others worry that monthly payments will empower landlords to raise prices and that annual payments are better suited for salary earners who may experience pay delays. Conversely, landlords argue that the upfront rent system is a necessary substitute for the lack of robust mortgage and credit markets in Nigeria, which hinders housing finance. Developers also caution that this change could discourage investment in new housing construction. Enforcement is a key concern, given that previous regulations against multi-year rent advances have been largely ineffective.
Section 6 – Rent Payment Receipts
The law requires landlords to issue receipts for every rent payment stating the amount, parties' names, property description, and duration covered (s.6(2)).
Commentary: This enhances transparency and provides crucial evidence in disputes. Tenants gain documentation of payments, while landlords face new compliance burdens.
Section 7 – Rights of a Tenant
The Bill guarantees:
"A tenant has a right to quiet and peaceable enjoyment of the premises which includes the right to (a) privacy; (b) freedom from unreasonable disturbance; (c) exclusive possession of the premises...; and (d) the use of common areas" (s.7(1)).
It further grants compensation for unexhausted improvements made with landlord consent (s.7(2)).
Commentary: Enshrining privacy and protection from harassment is a major gain for tenants, especially in an era where landlords increasingly install CCTV and biometric access systems. However, this intersects with Nigeria's Data Protection Act, 2023, raising questions about who owns and safeguards tenant data. Landlords worry about abuse of the "improvements" clause, fearing exaggerated claims at exit.
Section 9 & 10 – Rights and Obligations of Landlords
Landlords may inspect premises with notice (s.9(a)), ensure lawful use (s.9(b)), and collect service charges (s.9(c)). They are prohibited from disturbing quiet enjoyment, cutting off utilities, or seizing tenant property (s.10(a)-(d)).
Commentary: These provisions curb the common abuses of self-help eviction, but landlords complain that restrictions tilt the balance too far towards tenants, especially when court processes for eviction remain slow.
Section 11 – Tax Obligation on Rental Income
The Bill applies the Withholding Tax Regulations to all rental income (s.11).
Commentary: This secures state revenue in a sector long characterised by informality. Landlords, however, view this as double taxation, given they already pay Land Use Charges and Development Levies. Some fear it may drive tenancy back underground.
Section 12 – Service Charge and Security Deposits
Landlords must issue separate receipts for service charges and provide written accounts every six months (s.12(1)). Security deposits must be refunded at the tenancy's end, less the cost of damages (s.12(2)).
Commentary: This tackles widespread abuse of opaque service charges. Yet estate managers may resist disclosure, and tenants often face disputes over deposit refunds—the single most litigated tenancy issue in Lagos.
Section 14 – Length of Notice
Where unstated in agreements, notice periods are standardised: one week (tenant at will), one month (monthly tenancy), three months (quarterly/half-yearly), and six months (yearly tenancy) (s.14(1)).
Crucially, if a tenant owes two months' arrears (monthly tenancy) or three months' arrears (quarterly/half-yearly), the tenancy lapses and only seven days' eviction notice is required (s.14(2)-(4)).
Commentary: This strengthens landlord recovery rights but raises humanitarian concerns in a city where unemployment exceeds 33%. Civil society groups warn it could swell homelessness without safeguards.
Sections 15–19 – Notices and Recovery of Possession
The Bill modernizes service of notices, permitting delivery to occupants, courier service, or affixing to the premises (s.16–17). Tenants who refuse to quit after expiration may be served a seven-day recovery notice (s.19).
Commentary: These clarify eviction procedures and outlaw unlawful evictions, yet court delays remain a bottleneck. Lagos sheriffs are overwhelmed, meaning rights on paper may not translate to practice.
Section 21 – Grounds for Possession
The court may order possession for arrears, breach of covenant, landlord's personal use, unsafe premises, illegal use, abandonment, or intolerable nuisance (s.21(a)-(j)).
Commentary: This codifies diverse grounds but leaves much discretion to courts already plagued by backlog.
Section 22 – Proceedings by Originating Summons
The Bill allows landlords to seek possession through Originating Summons, supported by affidavit, exhibits, and statutory notices (s.22(1)–(3)). Tenants may also bring claims against landlords after serving a 30-day pre-action notice (s.22(4)–(5)).
Commentary: This provision is designed to streamline possession claims and avoid lengthy trials. By shifting many matters into affidavit-based summary proceedings, it reduces the evidentiary burden. Landlords welcome the speed, as eviction timelines often drag on for over a year. Tenants worry that affidavit-only hearings may limit their chance to present oral evidence, especially for low-income renters without legal counsel. Courts may face a surge in technical affidavit disputes rather than trials, shifting but not necessarily reducing workload.
Section 23 – Defence
Defendants (usually tenants) must file counter-affidavits within 14 days (s.23(1)), with landlords entitled to reply in 7 days (s.23(2)). Default leads to judgment against the tenant (s.23(3)).
Commentary: This strengthens procedural discipline but risks shutting out tenants who lack resources or legal literacy. Tenants argue the timelines are harsh, given financial hardship and court access issues. Landlords see it as overdue discipline to discourage frivolous delay tactics.
Section 24 – Hearing
Hearings must be fixed within 14 days after pleadings close, and may continue day-to-day until judgment (s.24(1)–(3)).
Commentary: This aligns with global best practice in housing courts (e.g., South Africa's tribunals). The judiciary faces questions of capacity — Lagos Magistrates' Courts are already overwhelmed. Tenants welcome faster justice if implemented fairly, but fear "speed" could mean "rush to eviction."
Also read: Omo Oni Ile Rights in Nigeria: Are They Valid or Extinguishable?
Section 25 – Appeals
Appeals require leave within 30 days, with strict documentation including proof of rent and utility payments (s.25(2)).
Commentary: This discourages frivolous appeals but may bar genuine tenant appeals from reaching higher courts. Tenants see this as a high bar; indigent renters may be unable to meet the financial undertakings. Landlords see it as ensuring possession orders aren't endlessly delayed.
Section 26–29 – Fixed Terms, Unknown Occupants, Breach and Abandonment
Landlords may recover at the end of fixed terms (s.26). "Persons unknown" in unlawful occupation can be sued by affixing notices to the property (s.27). Landlords may issue re-entry notices for breach of covenant (s.28). Abandoned premises may be repossessed after 60 days (s.29).
Commentary: These provisions modernise recovery in contexts like squatting and abandoned flats common in Lagos. Developers see this as essential to protect investments. Civil society fears abuse, particularly in labelling vulnerable occupants as "persons unknown" or prematurely declaring "abandonment." Tenants demand clearer safeguards against wrongful eviction.
Section 31–32 – Virtual Hearings and Weekend Courts
The Bill permits weekend/public holiday sittings (s.31) and virtual hearings via audio-visual platforms (s.32).
Commentary: This is innovative, especially given the COVID-era experience. It could reduce case backlogs significantly. Lawyers welcome efficiency but worry about the digital exclusion of low-income tenants with poor internet access. The judiciary faces infrastructure gaps; many Lagos courts still lack stable connectivity.
Section 33 – Unreasonable Rent Increases
Tenants may challenge rent hikes as "unreasonable," with courts considering local rents, evidence, and special circumstances (s.33).
Commentary: This is a landmark tenant protection, but the standard is vague. Unlike the UK, which ties increases to inflation indices, Lagos leaves it to judicial discretion. Tenants see this as hope against arbitrary 50% or 100% hikes in hot markets like Lekki. Landlords fear uncertainty and judicial overreach. Developers warn it could disincentivize new builds if returns are capped by subjective rulings.
Section 34–37 – Court as Rent Receiver & Mediation
Courts may receive rent if landlords refuse payment (s.34), order mesne profits (s.35), and promote mediation within 30 days (s.36–37).
Commentary: These provisions blend enforcement with ADR, recognising court congestion. Tenants like the option to pay through courts, protecting them from claims of arrears. Landlords see court-held rent as delaying cash flow. Mediation centres may be overwhelmed without funding.
Section 38–42 – Enforcement & Warrants
Courts may issue warrants for possession, renewable every three months (s.41). Entry may not occur on Sundays or holidays (s.42).
Commentary: Provides due process safeguards while ensuring enforceability. Landlords appreciate stronger enforcement tools. Tenants fear rapid enforcement without adequate relocation support. The government faces the cost of training and monitoring sheriffs to avoid abuse.
Section 43 – Offences and Penalties
Offences include unlawful eviction, harassment, property damage, resisting sheriffs, and false information. Penalties reach ₦1,000,000 fines or six months' imprisonment.12
Commentary: This criminalises common abuses such as landlords cutting utilities. Tenants hail it as overdue. Landlords argue that penalties are excessive and may criminalise honest mistakes. Agents worry about liability for routine disputes.
Comparative Perspective
- South Africa: The Rental Housing Tribunal provides swift, low-cost dispute resolution.13 Lagos State does have a dispute resolution mechanism under the Lagos State Tenancy Law, which includes mediation through the Lagos State Real Estate Transaction Department. However, the South African Rental Housing Tribunal offers a more formalised, cost-free, and quicker process, involving mediation and binding arbitration, whereas Lagos's system can be less efficient, potentially leading to further reliance on the overburdened court system for resolution.
- Ghana: Rent control exists under the Rent Act, but it has been widely criticised for being outdated, poorly implemented, and underfunded. Lagos risks the same fate unless it matches law with institutional support.14
- United Kingdom: The Renters Reform UK law limits rent reviews to once per year and grants tenants the right to challenge rent increases they deem unfair. Tenants can appeal to the First-tier Tribunal to assess whether a proposed rent increase is at or below the prevailing market rate. Importantly, the tribunal's authority is limited to approving, reducing, or maintaining the existing rent; it cannot increase it further.15 This system contrasts with Lagos's proposed standard of a "reasonable increase," which lacks a clear definition and could potentially lead to more disputes between landlords and tenants, due to the ambiguity in determining what constitutes a fair and justified increase.
Conclusion
The Lagos tenancy law reflects an important attempt to balance the interests of landlords, tenants, agents, and government, but its implementation remains riddled with gaps. Compared with jurisdictions like South Africa, Ghana, and the UK, Nigeria's framework struggles with enforcement, tenant protection, and transparency, leaving room for abuse by developers and agents. Unless the law is backed by strong regulatory oversight, digital transparency, and tenant education, the housing market will continue to tilt in favour of those with greater bargaining power.16
Footnotes
1.Amarachi okeke August 21, 2025 Lagos Rental Market Stalls at 1.38 Million Households Despite Soaring Population, accessed on 4th September 2025 from Growthhttps://www.nigeriahousingmarket.com/real-estate-news-nigeria/lagos-rental-households-stagnant-for-9-years-despite-rising-population
2.NBS, CPI and Inflation Report April 2024 accessed on 5th September 2025 from https://www.nigerianstat.gov.ng/elibrary/read/1241497
3.Opeyemi lawal (2025) How Lagos Laws Let Landlords Increase Rent Without Restraint accessed on 5th th September 2025 from https://fij.ng/article/how-lagos-laws-let-landlords-increase-rent-without-restraint/#:
4. Foundation for Investigative journalism
5. Ibid.
6.The State of Lagos Housing Market Report (Vol. 3), produced by the Roland Igbinoba Real Foundation for Housing and Urban Development (RIRFHUD),
7.Temi, O. J., & Champika, L. (2018). Urbanization and Meeting the Need for Affordable Housing in Nigeria. In A. Amjad & A. Asaad (Eds.), Housing (pp. 1-19). IntechOpen. https://doi.org/10.5772/intechopen.78576
8. Tenancy Law of 2011
9. Loree Montelli, Kevin Newton (2023) Rapid Population Growth | Importance, Consequences & Impact accessed on 5th September 2025 from https://study.com/academy/lesson/rapid-population-growth-consequences-prevention-methods.
10.The Lagos State Tenancy And Recovery of Premises Draft Bill, 2025
11. section 2(1) of the Bill
12. Section 43 of the Bill
13.Sajjad Ahmad (2024) Rental Housing Act: Understanding Tenant and Landlord Rights accessed on 5th September 2025 from https://www.landlordsassociation.co.za/guide-to-the-rental-housing-act-understanding-tenant-and-landlord-rights/
14.Nelson C.J (2025) This Union in Ghana is Fighting For Rent Control and Affordable Housing accessed on 4th September 2025 from https://www.okayafrica.com/national-tenants-union-ghana/
15. Suzanne Smith (2025) The new rules about rent in the Renters' Rights Bill Accessed on 5th September 2025 from https://theindependentlandlord.com/renters-rights-rent/
16.Olugbenga, E., & Adekemi, O. (2013). Challenges of Housing Delivery in Metropolitan Lagos. Research on Humanities and Social Science, 3(20), 1-8. Retrieved From https://core.ac.uk/download/pdf/234673721.pdf
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