If you rent, let, or broker homes in Lagos, the proposed Lagos tenancy bill is the reform worth watching this year. The Lagos State Tenancy and Recovery of Premises Bill, 2025 is still before the House of Assembly (committee stage as of mid-2026), so it is not yet law. Until it is passed and assented to, the Tenancy Law 2011 and related recovery rules still apply. Even so, Housing Commissioner Moruf Akinderu-Fatai has flagged it as the state’s route to a clearer, professionally regulated rental market — and the draft already shows where practice may shift.
What the Lagos tenancy bill would change
Unlike the older split between premium districts and the rest of the city, the Bill is written to cover residential and commercial premises across Lagos (with limited exclusions such as staff or student housing and hospitals). That matters for a shop in Lekki as much as a flat in Surulere.
Key proposals reported from the Bill text and government briefings include:
- Advance rent limits. Landlords would be barred from demanding more than three months’ rent in advance from a sitting monthly tenant, and more than one year’s rent from a new or sitting yearly tenant. Tenants would also be barred from offering more than those caps. Violations could attract fines of up to ₦1,000,000 or imprisonment.
- Agency fees and licensing. Estate agents would need mandatory registration with LASRERA. The Bill text caps agency commission at 5% of annual rent (government speakers have at times mentioned 10%; treat the Bill text as the figure to watch until enactment). Agents who collect rent would need to remit to the landlord within seven working days.
- Stronger bans on self-help eviction. Cutting utilities, removing roofs, lockouts and similar harassment would be more clearly criminalised, with higher penalties than under current law. Court orders would still be required to recover possession.
- Service charges and deposits. Separate receipts for service charges and security deposits, plus a written service-charge account every six months, and refundable caution fees subject to verifiable deductions.
- Faster dispute handling. Courts (with virtual hearing options) and encouragement of ADR; tenants challenging rent increases could seek court determination of what is “reasonable,” with eviction stayed while that challenge is pending.
Sources: Mondaq analysis of the Bill (26 Aug 2026) and The Nation coverage of the Real Estate Business Forum reforms (13 July 2026).
Why this matters for buyers and renters right now
None of this is enforceable until the Bill becomes law. Landlords who still take two years’ rent up front, or agents charging double-digit commissions, are operating under today’s rules — not tomorrow’s. Still, the direction of travel is clear: tighter agent licensing, lower allowable advance rent for many tenancies, and less room for illegal lockouts.
That sits alongside other Lagos ease-of-business moves the Commissioner highlighted at the same forum: Lagos EGIS cutting Certificate of Occupancy processing time by over 60%, faster building approvals (weeks instead of 12–18 months), and a 40% rebate on statutory approvals for affordable housing joint ventures with the state. For investors, the message is that process reform and tenancy reform are moving together — even while the city’s housing deficit remains around 3.4 million units.
Practical next steps with Planwell Homes
If you are renewing a lease, onboarding a tenant, or comparing Lekki, Ikoyi or mainland rents this week:
- Keep written agreements that match what you actually paid (rent, agency fee, caution, service charge).
- Prefer licensed agents and ask for LASRERA registration where relevant.
- Do not rely on “self-help” if a tenancy goes wrong — court process still matters.
- Watch for House of Assembly updates before changing portfolio-wide rent policies.
Planning a move or an investment? Browse our live listings and get in touch with Planwell Homes — and read more market notes on our blog, including how buyers can avoid flood-prone areas in Lagos.
Planwell Homes Limited is a verified agency on Nigeria Property Centre, with active inventory across Lekki, Ikoyi, Victoria Island, Ajah and beyond.
