THE TENANCY LAW BILL: BRIDGING THE GAPS IN LAGOS STATE TENANCY LAW
By Abidoun Olufote Esq. BL, ArbMed, property and Media Law Consultant
The Importance of a New Tenancy Law in Lagos State: Bridging the Gaps of the 2011 Tenancy Law
In a vibrant city like Lagos, where urbanization is at its peak and the population is rapidly growing, the need for a robust and equitable Tenancy Law has never been more significant. The Lagos State Tenancy Law of 2011, which aimed to regulate landlord-tenant relationships, has become outdated in addressing many emerging issues in the real estate market. As the socio-economic landscape evolves, it is imperative for the state government to revisit and revise the existing law to ensure that it benefits both tenants and landlords while fostering transparency and fairness in the real estate sector.
Key Areas for Reform
Duration to Increase Rent:
The 2011 Tenancy Law lacks a clear framework concerning the duration and conditions under which landlords can increase rent. Under Section 14, landlords are permitted to review rent, but the absence of specific timelines leaves room for arbitrary increases. A new tenancy law should stipulate a defined period—ideally, every 12 to 24 months—after which a rent increase can occur, alongside a transparent methodology for determining the new amount based on market rates.
Professional Conflict of Interests Among Lawyers and Real Estate Agents:
The involvement of real estate agents and their relationship with landlords can create conflicts of interest, leading to inflated fees and commissions taken from tenants. The current law lacks provisions to govern the conduct of agents and lawyers in these transactions. Introducing clear guidelines that dictate ethical practices and enforce penalties for conflicts of interest is crucial to protect consumers in this sector.
Application of Section 1 of the 2011 Law:
Section 1 of the 2011 Tenancy Law requires landlords to provide a written agreement with stipulated terms and conditions for a tenancy. However, there are ambiguities surrounding the enforcement of this requirement. Many landlords do not adhere to this provision, leading to misunderstandings and disputes. A new law could incorporate stricter penalties for non-compliance, ensuring that written agreements are the standard rather than the exception.
Tenant Protections:
While the 2011 law primarily protects tenants, it also creates a perception of imbalance that may deter potential landlords from investing in rental properties. A more measured approach in a revised law could re-establish equilibrium in rights and responsibilities, ensuring that while tenants are protected, landlords are also granted fair rights and mechanisms for timely rent collection and property maintenance.
Agency Fee Limit:
The Lagos State Tenancy Law 2011 does not adequately define the limits on agency fees, which can vary considerably and lead to tenant exploitation. A new law should establish a standardized, transparent fee structure that protects renters from exorbitant charges, facilitating a more equitable transaction between agents and tenants.
Application of Rent Control and Recovery of Residential Premises 2003 and the Tenancy Law 2011:
The integration of the Rent Control Law of 2003 with the Tenancy Law of 2011 is fraught with confusion. A comprehensive revision should clarify these two laws’ interplay, distinguishing how they apply, particularly in regard to rent control measures and the process for recovering residential premises. Clear directives on the applicability of both laws in different contexts will assist both tenants and landlords in understanding their rights and obligations.
Comparisons and Key Provisions: Old Law vs. New Bill
1. Context & Scope
Old Law (2011 / Cap. T1, LLS 2015): Applied only to designated urban and semi-urban areas, lacking uniform application statewide.
New Bill (2025): Enacts statewide coverage across all premises—residential and commercial—while allowing limited exemptions (e.g., staff quarters, student hostels, emergency shelters).
Inference: The broader jurisdiction of the new law enables equitable tenant-landlord regulation across Lagos, closing gaps in peripheral or informal settlements.
2. Agency Regulation & Fee Structure
Old Law: Commission and agency practices largely unregulated—agents often charged 10% (or more) of annual rent, leading to exploitation and inconsistent standards.
New Bill: Mandates agent registration under LASRERA, caps agency fees at 5% of annual rent, and provides for penalties (up to ₦1 million fine and/or two years’ imprisonment) for violations.
Shortcoming Fix: The bill introduces professional accountability and curtails exploitative fees—critical in easing tenant burden.
Stakeholder Reaction: Professional bodies (ESVARBON, NIESV, AEAN, NBA, REDAN) raised concerns that this cap conflicts with pre-existing fee scales and could impinge on estate surveyors’ incomes. They urged that the law explicitly recognise professionals under ESVARBON’s remit to preserve their authority and standards.
3. Rent Payment & Advance Collection
Old Law: Tenants often forced to pay up to two years’ rent in advance, creating severe cash-flow strain, especially for low- and middle-income tenants.
New Bill: Restricts maximum advance rent collection—up to 3 months for monthly-tenants, one year for yearly-tenants, and allows advance payments only if the tenant consents.
Improvement: Significantly enhances affordability and flexibility for tenants without unduly disadvantaging landlords.
4. Dispute Resolution & Court Procedure
Old Law: Slow, formalistic processes with poor timelines.
New Bill: Modernizes judicial procedures—introduces originating summons, provisions for “persons unknown,” weekend/virtual hearings, mediations, and enforceable ADR mechanisms.
Benefit: Faster resolutions, reduced backlog, and clearer timelines.
5. Tenant Protection & Eviction
Old Law: Eviction rules lacked clarity; tenants were susceptible to arbitrary actions.
New Bill: Defines clear eviction procedures, demand of rent receipts, capped rent increase practices, and allows tenants to legally challenge “unreasonable” rent hikes.
Advancement: Legally reinforces tenant rights and reduces landlord abuse.
6. Transitional Provisions
Old Law to New Bill: The transition plan from old law to new law lacks specificity.
Recommendation: Draft clear transitional provisions to clarify which law governs active contracts and pending disputes.
7. Legal Drafting & Professional Fees
Concern: Poorly drafted agreements by non-practitioners remain a chief cause of conflict.
Advice: Incorporate reference to the Legal Practitioners (Remuneration for Legal Documentation and Other Land Matters) Order, mandating professional legal drafting and fair compensation—failure to comply could attract fines.
8. Stakeholder Inputs From the Public Hearing
Professional Bodies: Urged explicit recognition of estate surveyors under ESVARBON and advocated for nuanced rent remittance rules.
Legal Community (NBA): Called for strict timelines for agreement preparation, specialist courts, and adoption of electronic notice service.
Government: Emphasized balance—protecting both tenants and landlords while boosting investor confidence.
Legislators: Supported agency fee cap and clear eviction framework; noted that over 70% of Lagos residents are tenants.
Summary Table
Area
Old Law (2011)
New Bill (2025) — Improvements & Recommendations
Geographic Coverage
Limited to urban/semi-urban zones
Statewide, including rural and commercial premises
Agency Regulation
Unregulated fees (often 10%)
Mandatory LASRERA registration; 5% cap; sanctions
Advance Rent Collection
Up to 2 years
Caps: 3 months (monthly), 1 year (yearly), consent
Dispute Resolution
Slow, formal, backlog-prone
Virtual hearings, ADR enforcement
Evictions & Rent Increases
Vague, exploited by landlords
Defined procedures, tenant protection
Legal Drafting
Informal drafting, non-lawyer
Mandate legal fees and professional drafting
Transition Clause
No clarity on ongoing contracts
Explicit transitional provisions needed
Final Reflections & Outlook
The Lagos State Tenancy & Recovery of Premises Bill 2025 marks a transformative step toward professionalizing the rental market and safeguarding tenant rights—especially in a state where over 70% of residents rent homes and housing costs currently consume 40–60% of incomes.
Agency fee caps must align with professional fee structures to avoid forcing valued practitioners underground.
Legal drafting should be standardized to avoid disputes spurred by poorly crafted agreements.
Transition provisions are critical to legal clarity and minimize disruptions in existing tenancies.
Implementation success hinges on sustained stakeholder engagement—especially from ESVARBON, NIESV, NBA, REDAN, and real estate professionals.
By balancing regulation with practicality—and anchoring the law in stakeholder input—Lagos can emerge with a pioneering tenancy framework that protects its most vulnerable while fostering investor trust and modern housing development.
Proposal: Establishment of a Recovery of Premises Tribunal
One major shortcoming of both the 2011 Lagos State Tenancy Law and the proposed 2025 Bill is the absence of a dedicated tribunal for tenancy disputes. While the new bill proposes improvements such as alternative dispute resolution (ADR), virtual hearings, and streamlined processes, these measures may still fall short without a specialized forum.
Rationale for a Tribunal
The current judicial structure subjects tenancy matters to the same delays, adjournments, and procedural technicalities faced in regular civil cases. This often undermines the objective of quick and equitable resolution, especially where eviction, rent default, or unlawful occupation is concerned.
Proposed Tribunal Features
Exclusive jurisdiction over tenancy and recovery of premises matters (rent default, eviction, unlawful rent increases, enforcement of agreements)
Summary proceedings with strict timelines (e.g., max 90 days for final decision)
Sitting magistrates or specially appointed adjudicators with expertise in property law
Support for ADR and mediation units
Digital/virtual hearings for ease of access
Precedent Models
Jurisdictions like South Africa, the UK, and parts of India have institutionalized such tribunals with positive outcomes—speedy resolutions, cost-effective procedures, and higher compliance rates.
Stakeholder Support
At the Lagos State House of Assembly’s public hearing, legal and property professionals advocated for specialist courts or tribunals tailored to tenancy law and a reduction in dependence on regular magistrate courts.
Recommendation:
The Lagos State Tenancy & Recovery of Premises Bill 2025 should be amended to include the establishment of a Recovery of Premises Tribunal, either as a new part under the law or through separate enabling legislation.
This proposal will enhance judicial efficiency and deepen public confidence in tenancy regulation and access to justice—especially for low-income tenants who may lack the resources for lengthy litigation.
Conclusion
The need for a new Tenancy Law in Lagos State is urgent, given the inadequacies of the 2011 law in addressing the complexities of the current real estate landscape. By focusing on critical areas like rent increase protocols, professional ethics, tenant protections, and the clarification of conflicting regulations, the government can create a more equitable framework that promotes investment, protects rights, and fosters a harmonious landlord-tenant relationship. The revised law should embrace modern realities and strive for transparency, ensuring that Lagos continues to thrive as Nigeria’s economic hub while safeguarding the interests of its residents.
Abidoun Olufote Esq. BL, ArbMed is a Property and Media Law Consultant
