The Lagos real estate sector has been buzzing for months as the state government pushes forward the Lagos State Tenancy and Recovery of Premises Bill 2025, a sweeping overhaul designed to modernise one of Africa’s busiest rental markets.
For years, Lagos has struggled with excessive advance rent demands, unregulated real estate practices, and painfully slow eviction disputes. The current Tenancy Law of 2011, though groundbreaking at the time, has not kept pace with the city’s explosive growth and evolving housing challenges.
The new bill seeks to reshape landlord-tenant relations, strengthen tenant protections, and clean up agency practices all while speeding up dispute resolution. Though still a draft as of late 2025, here are 10 essential things to know about what the proposed law introduces.
1. Mandatory Registration of Real Estate Agents
Section 3 mandates that all agents must register with the Lagos State Real Estate Regulatory Authority (LASRERA). This formalises the profession and curbs quack practices that have plagued the industry for years.
2. 5% Cap on Agency Fees
Agents cannot charge more than 5% of annual rent as commission. This prevents arbitrary or inflated agency charges.
3. Mandatory Transparency in Rent Transactions
Money collected from tenants must be remitted to landlords within seven working days, with proper receipts issued. Violations attract fines up to ₦1 million, a two-year jail term, or both.
4. Tenants Can Legally Challenge Unfair Rent Hikes
While the bill does not control rent, it offers tenants a powerful tool: they can now ask the courts to block any rent increase deemed unreasonable. Courts will evaluate comparable rents, evidence from both sides, and special circumstances.
5. No Eviction During Rent-Increase Disputes
Landlords cannot eject tenants while a rent-increase challenge is ongoing. This protects tenants from retaliatory evictions.
6. Faster Eviction and Tenancy Court Procedures
Sections 20–24 introduce originating summons, weekend and virtual court sittings, and mandatory hearing dates within 14 days. Mediation timelines are capped at 30 days. This aims to end the years-long eviction battles common in Lagos.
7. Transparent Service Charges and Security Deposits
Section 12 requires landlords to present a breakdown of service charge use every six months. Security deposits must be refunded except in cases of documented damages.
8. Stronger Tenant Rights to Privacy and Peaceful Enjoyment
Section 7 reinforces tenants’ rights to privacy, peaceful occupation, and use of common areas. Improvements made with written consent can attract compensation.
9. Improved Guidance for Landlords
The bill creates clear structures for issuing notices, filing cases, and managing rent reviews — reducing legal ambiguity and helping landlords manage properties more professionally.
10. Still a Draft — Not Yet Law
The bill was introduced in July 2025 and passed its second reading on July 10. It is currently before the House Committee on Housing. Until formally passed and assented to, the provisions remain proposals.
As Lagos continues to grow, the 2025 tenancy bill represents one of the most significant attempts in over a decade to bring order, fairness, and transparency to the rental landscape. Whether you're a landlord, tenant, or agent, this is a bill that will reshape how housing works in Nigeria’s most dynamic city.
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