- Proposed tenancy law aims to cut annual agency fees from 10% to 5%, easing the financial burden on Lagos renters already battling high housing costs.
Our Reporter
For many Lagos residents, securing a roof over one’s head is a costly exercise — not just because of soaring rents, but because of the hefty fees charged by estate agents. From Yaba to Ikeja, stories abound of young professionals, families, and fresh graduates struggling to save enough for a year’s rent only to be hit with an additional 10 per cent agency fee, plus legal charges, before they can move in.
This could soon change.
The Lagos State House of Assembly has proposed a new Tenancy Bill aimed at reducing agency fees on annual rents from 10 per cent to 5 per cent, offering some relief to tenants already squeezed by the city’s high cost of living.
Easing a Long-Standing Frustration
Speaking in Lagos on Thursday, the Chairman of the House Committee on Information, Mr Stephen Ogundipe, said the bill was crafted in direct response to “public complaints regarding high fees charged by agents.”
“The new bill currently under consideration is designed to protect the rights of both tenants and landlords,” he said. “It will also reduce disputes and remove barriers to large-scale housing development by private investors.”
Ogundipe explained that by cutting agency fees in half, the law would help restore trust in the rental market, improve landlord–tenant relations, and encourage more real estate investment.
Balancing Rights and Responsibilities
The proposed law does more than just cap agent fees. It clarifies the rights and obligations of both parties, allowing landlords to inspect and maintain their properties upon giving prior notice, and encouraging landlords to insure their premises against loss or damage.
If passed, Ogundipe believes the legislation will “put an end to many of the recurring controversies between landlords and tenants” and foster “mutual understanding” that leads to peaceful co-existence.
Stakeholders Weigh In
Wednesday’s public hearing on the bill drew key figures from the housing sector, including Mr Olusegun Ege, Chairman of the House Committee on Housing; House Majority Leader, Mr Noheem Adams; and the Commissioner for Housing, Mr Moruf Akinderu-Fatai.
Representatives from professional bodies such as the Nigerian Institution of Estate Surveyors and Valuers, the Nigerian Bar Association, the Real Estate Developers Association of Nigeria, and the Real Estate Agents Association were also present.
Their contributions, Ogundipe said, would be vital in shaping a “progressive and balanced” law.
A Relief for Tenants
For Destiny Wada, a 29-year-old marketing executive in Oshodi, the prospect of halving agency fees is a warming development. “I moved houses last year and paid ₦500,000 in rent. However, with agency and legal fees, my total package came to almost ₦900,000. That’s an extra month’s salary gone,” she told LinesWatch.
If the bill becomes law, “9:00 to 5:00 workers and other hustling folks can breathe. The saved expenses could be used to furnish your new home,” she said.
The Bigger Picture
Lagos, home to more than 20 million people, faces chronic housing shortages and sky-high rents, particularly in prime and mid-tier neighbourhoods. While cutting agency fees will not solve the housing crisis, lawmakers argue it will at least lower the immediate financial barrier for renters — especially low-and middle-income earners.
The bill still has to pass through the legislative process before it becomes law, but for tenants like Wada, it offers a rare glimmer of hope in a city where housing costs feel insurmountable.