The Lagos State House of Assembly is pushing a new bill that could change how landlords and tenants relate. If passed, the bill will slash agency fees on annual rent from 10% to 5%.
Speaker Mudashiru Obasa made this known during a public hearing held on Wednesday. He was represented by Stephen Ogundipe.
“A commission or agency fee in respect of any tenancy shall be agreed upon by the Agent and the Landlord or Tenant who engaged the agent, and the amount shall not exceed 5% of the amount paid as one year’s rent,” reads section 3(4) of the proposed law.
Offenders Face ₦1m Fine or Jail
Obasa warned that agents who collect more than the approved 5% will face stiff penalties. Offenders risk a refund, two years in prison, or a fine of ₦1 million.
“Such an agent commits an offence punishable by refund, two years’ imprisonment, or a fine of ₦1 million,” he said.
The bill also seeks to regulate tenancy agreements, rent payments, property maintenance, and eviction procedures.
Obasa revealed that Lagos’ housing deficit has grown by 15% since 2016. It rose from 2.95 million units to 3.4 million units in 2025.
He said over 70% of Lagosians are tenants, with many spending 40–60% of their income on rent.
“Over 70% of Lagos residents are tenants, with many spending 40 to 60% of their income on rent,” he stated.
This bill aims to ease that burden and create a fairer rental system.
Eviction Rules and Tenant Protection
Olusegun Ege, chairman of the House Committee on Housing, said the bill contains four parts and 45 clauses.
It covers rights and obligations of landlords and tenants, rent payments, and dispute resolution.
“The legislation outlines clear eviction procedures to protect tenants from arbitrary evictions,” Ege said.
He added that the bill will help families and small businesses stay stable.
Some professional bodies at the hearing were, however, not pleased. They argued that the 5% cap clashes with existing service rates in the real estate sector.
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