Progressively, a law to redefine tenancy agreements and also regulate landlord-tenant relations in Lagos is nearing conclusion, raising expectations of reduced friction, market stabilization, and relief for renters.
Recently, the Lagos Tenancy Bill passed a second reading at the state’s House of Assembly, meaning that by the third reading, the bill will be passed into law and, subsequently, assented to by the state governor.
The bill titled ‘A bill for a law to regulate the relationship between landlords and tenants in Lagos, seeks to redefine tenancy agreements, outline responsibilities, and establish clear procedures for eviction, aiming to bring order and fairness in the housing sector.
It also seeks to clarify the rights and obligations of tenants, landlords, and agents across the state, including the procedure for the recovery of premises and connected purposes.
Lagos is the most active rental market in Nigeria, if not Africa, where a new report estimates the number of renters at 70 percent of the state’s over 20 million population.
Rental activity in the state is driven chiefly by its expanding population and fast-paced urbanization, making it a seller’s market where landlords exploit both sitting and intending tenants by charging outrageous rents that are reviewed upwards almost every year.
Besides impoverishing tenants and putting them under intense pressure, high rents and their constant review also breed friction between landlords and tenants, making the rental market unstable and unsupportive of new investments.
Read also: Rent Hike: Lagos Assembly seek full implementation of 2015 tenancy law
These explain the beauty of the new bill and the warm welcome it has received even among the legislators as reflected in the submission of Sa’ad Olumoh, the member representing Ajeromi-Ifelodun constituency I, who hopes “the bill will promote harmony by setting out payment structures such as monthly and annual rent options, alongside eviction notice protocols.”
Aro Moshood, a member representing Ikorodu constituency II, called for the establishment of an enforcement body to discipline landlords who impose arbitrary rents beyond legal limits, stressing the bill’s potential to ease tenants’ financial burden.
Other lawmakers, including Stephen Ogundipe, representing Oshodi-Isolo I, and Femi Saheed, a member representing Kosofe constituency II, praised the bill’s inclusiveness and comprehensiveness, noting that it addresses agent roles, rent payments, and dispute resolution and affirms the jurisdiction of courts in tenancy matters.
Ajayi Oladele, representing Ibeju Lekki II, said the bill will help resolve conflicts often caused by estate agents by clearly defining stakeholders’ legal positions.
Mudashiru Obasa, speaker of the house, urged lawmakers to consider tenants who rely on end-of-year bonuses and leave allowances for rent payments, while also acknowledging landlords’ dependence on rental income amid rising building costs.
Observably, Lagos remains a pace setter on issues of housing, rents, agents, landlords, and tenants. Besides this bill, the state had passed laws on rent payment and, in recent times, has been seeking stakeholders’ buy-in to implement one-month rent payment.
The state is also implementing other tenant-focused housing schemes such as the Rent-to-Own and the Lagos Homeownership Mortgage Scheme (LagosHoms), which are intended to ease the burden of owning homes in the sprawling city, where house prices and rents are on the rooftop in virtually all market nodes in the city.
Amid these efforts, however, the state’s housing deficit keeps rising. According to the new report, the deficit has risen by 15 percent, from 2.94 million units in 2016 to 3.4 million units in 2025, indicating that the state’s current efforts are insufficient.
