Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Lagos State Government has unveiled a new tenancy bill aimed at curbing arbitrary rent increases, illegal charges, and exploitative practices in the real estate sector, with a particular focus on regulating the activities of estate agents and standardising rental transactions across the state. The State Commissioner for Housing, Moruf Akinderu-Fatai, disclosed the proposed legislation during the 2026 Ministerial Press Briefing held in Alausa, Ikeja, on Tuesday, May 26, 2026, stating that the bill is currently before the Lagos State House of Assembly and is at the committee stage. Once passed, the law is expected to introduce major reforms capable of sanitising the housing sector and protecting tenants from exploitation.
One of the key provisions of the proposed bill is the mandatory registration of all estate agents operating in Lagos with the Lagos State Real Estate Regulatory Authority (LASRERA). According to Akinderu-Fatai, operating without registration would become a punishable offence once the bill becomes law, a move aimed at tackling the activities of unregistered agents accused of exploiting tenants through excessive charges, multiple sales of properties, and other fraudulent transactions. The government also reiterated that estate agency fees in Lagos should not exceed 10 per cent of the total rent paid by tenants, though earlier drafts of the bill had proposed a five per cent cap. The commissioner added that LASRERA had intensified enforcement against fraudulent operators, recovering more than N270 million from them between 2025 and 2026.
The proposed legislation also seeks to fast‑track tenancy disputes by introducing weekend and public holiday sittings for tenancy‑related matters, aiming to prevent the prolonged legal delays that often leave landlords and tenants in limbo. However, the bill places a new burden on tenants: anyone seeking legal action against a landlord would be required to provide proof of rent payments and updated utility bills before initiating court proceedings. Additionally, the law would prohibit landlords from demanding more than one year’s rent from new tenants or more than three months’ rent from monthly tenants, while also making the issuance of rent receipts mandatory. The bill also proposes penalties, including jail terms and fines of up to N1 million for violations.
Commissioner Akinderu-Fatai expressed optimism that the new law would foster harmony in landlord-tenant relations, stimulate real estate investment, and restore sanity, transparency, and accountability in the sector. He reiterated the commitment of the Sanwo‑Olu administration to making housing transactions more transparent, affordable, and investor‑friendly across the state, while noting that the government has delivered over 10,000 housing units in the past seven years as part of broader efforts to reduce the state’s housing deficit. The bill has generated widespread debate among property stakeholders, with some applauding the move to curb excesses while others warn that overly strict regulations could discourage investment in the rental market.
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