Lagos Tenancy Bill 2025: What Property Managers, Landlords, and Estate Agents Should Know

What is the Lagos Tenancy Bill 2025?

The Lagos State Tenancy and Recovery of Premises Bill 2025 is a proposed law currently before the Lagos State House of Assembly. It was introduced in July 2025, passed its second reading on 10 July 2025, and has been referred to the House Committee on Housing for review. At the 2026 Ministerial Press Briefing held in Alausa, Ikeja, Commissioner for Housing Moruf Akinderu-Fatai confirmed the bill is at the committee stage and is expected to introduce reforms that will sanitise the housing and real estate sector in Lagos.

The bill replaces and expands upon the Lagos Tenancy Law of 2011 (consolidated into Laws of Lagos State 2015, Cap T1), which has been criticised for weak enforcement. One of the most significant structural changes: the 2011 law excluded some of the most expensive areas in Lagos — Ikoyi, Victoria Island, Ikeja GRA, and Apapa — from its provisions. The new bill applies to all premises across Lagos State with no geographic exclusions.

Key provisions of the bill

The bill covers six major areas: rent advance limits, agency fee regulation, estate agent registration, tenant protections, security deposit accountability, and court procedure reforms. Each area addresses a gap in the existing 2011 law that has allowed exploitative practices to persist.

• Rent advance for monthly sitting tenants capped at 3 months (down from 6 months under the 2011 law)
• Rent advance for new yearly tenants remains capped at 1 year
• Agency fees capped — the bill proposes a 5% cap on annual rent; the current LASRERA guideline is 10%
• Agents must remit money collected from tenants to the landlord within 7 working days with proper receipts
• All estate agents must register with LASRERA — penalties for non-compliance include fines up to N1 million and up to 2 years imprisonment
• Tenants gain standing to challenge unreasonable rent increases in court (Section 33)
• Landlords cannot evict tenants while a rent increase dispute is pending in court
• Landlords must account for service charges and security deposits every 6 months; deposits are refundable minus documented damage
• Tenants gain explicit rights to privacy, peaceful enjoyment, use of common areas, and compensation for improvements made with written landlord consent
• Court must hear tenancy cases within 14 days, including weekends and public holidays; virtual hearings are permitted
• Mediation is promoted and capped at 30 days before returning to court
• Illegal eviction, lockouts, removing roofing sheets, disconnecting utilities, and harassment are criminalised — N1 million fine or 6 months imprisonment
• Landlords must obtain a court order before evicting any tenant
• The bill applies to all premises across Lagos State — unlike the 2011 law, which excluded Ikoyi, Victoria Island, Ikeja GRA, and Apapa

How the bill compares to the 2011 Tenancy Law

The 2011 law set a framework, but enforcement was weak and penalties were low enough to ignore. The new bill makes four structural changes: it removes geographic exclusions so the law covers all of Lagos, it raises financial penalties by 10x, it creates faster court timelines, and it gives tenants a formal mechanism to challenge rent increases.

What this means for property managers and estate agents

The bill shifts the operating environment for anyone collecting rent or managing property in Lagos. Compliance is no longer optional, and the cost of non-compliance has risen sharply.

Property managers who already operate transparently — issuing receipts, maintaining records, charging documented fees — will find the transition manageable. Managers who rely on verbal agreements, undocumented charges, or unregistered operations face real legal risk.

• Register with LASRERA if you have not already — the bill makes this mandatory with criminal penalties
• Document every fee you charge and ensure agency fees stay within the cap
• Issue receipts for all money collected from tenants and remit to landlords within 7 working days
• Maintain auditable rent payment records — tenants filing court cases will need proof of payment, and so will you
• Prepare to justify rent increases with comparable market data if challenged
• Review your eviction procedures — self-help evictions (lockouts, utility disconnection, intimidation) become criminal offences

What this means for landlords

Landlords accustomed to collecting large rent advances or using informal eviction tactics will need to adjust. The bill protects legitimate landlords who follow process, but it penalises those who do not.

For landlords who use property managers, the bill creates an incentive to work with registered, compliant agents. If your agent is unregistered or charges tenants undocumented fees, you share the reputational and legal risk.

• You cannot demand more than 3 months advance rent from a monthly sitting tenant
• You must go through court to evict — no lockouts, no intimidation, no utility shutoffs
• Rent increases must be reasonable and defensible if challenged
• Your agent must be LASRERA-registered and must remit collected rent within 7 working days
• Keep records of all rent payments, notices, and communications with tenants

What this means for tenants

The bill gives tenants more protection than any previous Lagos tenancy law. Tenants gain the right to challenge rent increases in court, benefit from faster dispute resolution, and are protected from illegal eviction. However, tenants also have responsibilities — filing a court case requires proof of rent payment and updated utility bills.

• You can challenge an unreasonable rent increase in court — the court will compare rents in similar areas
• Your landlord cannot evict you without a court order
• Lockouts, harassment, and intimidation by landlords are now criminal offences
• Tenancy disputes must be heard within 14 days
• You must keep proof of rent payment and utility bills — you will need them if you file a case

Why LASRERA registration matters now

LASRERA (Lagos State Real Estate Regulatory Authority) has existed since 2015, but registration has been loosely enforced. The new bill changes that by attaching criminal penalties to operating without registration.

Between 2025 and 2026, LASRERA recovered over N270 million from fraudulent estate agents. The Commissioner confirmed that enforcement has intensified, and the new law will give the authority stronger tools.

• Individual agent requirements: Nigerian citizenship or valid work permit, age 18+, LASSRA number, office in Lagos, minimum NECO/WAEC/GCE qualification, 3-year tax clearance certificate
• Company requirements: CAC registration, 3-year tax clearance, proper transaction records
• Penalty for operating unregistered: up to N1 million fine and up to 2 years imprisonment
• Registered agents must issue receipts and remit tenant payments within 7 working days

The bigger picture: rent in Lagos in 2026

The bill arrives at a moment when Lagos tenants are under severe pressure. Over 70% of Lagos's approximately 22 million residents are renters, and the average Lagos household spends 40% to 70% of monthly income on rent. Rents across the city rose between 12% and 18% year-on-year in early 2026, driven by naira depreciation, construction cost inflation, and a persistent housing undersupply of over 3.3 million units. Some landlords have been converting residential units to short-let apartments, further shrinking the long-term rental supply.

At the same time, many tenants do not know their rights even under the existing 2011 law. The new bill — with its higher penalties, faster courts, and tenant right to challenge increases — is designed to rebalance the relationship. Whether enforcement follows the legislation remains the critical question.

Stakeholder reactions and concerns

The bill has drawn mixed reactions. Tenants and tenant advocacy groups largely support it. Landlords and some estate agent professional bodies have raised concerns.

The Nigerian Institution of Estate Surveyors and Valuers (NIESV) has argued that the 5% agency fee cap conflicts with existing professional fee scales and could significantly reduce practitioner incomes. Some landlords view the rent advance restrictions as a threat to their retirement security, especially given Nigeria's volatile economy where inflation erodes the value of monthly payments.

Critics also question whether Lagos has enough courts to handle the volume of cases if tenants begin exercising their new rights at scale. Others argue that supply-side measures — building more affordable housing — would be more effective than demand-side regulation.

• NIESV raised concerns that the 5% agency fee cap could impinge on professional income and conflicts with existing fee scales
• Some landlords argue lump-sum rent collection is essential protection against inflation eroding monthly payments
• Policy analysts question whether the court system can handle the expected increase in dispute filings
• Developers warn that regulating rents while construction costs remain uncontrolled could reduce housing supply

Watch out for misinformation

The Lagos State Government has already had to disown a viral publication falsely claiming the tenancy law had been updated. The government clarified that the Tenancy Law of 2015 (consolidating the 2011 law) is still the subsisting law and the new bill has not yet been passed.

Until the bill completes its passage through the House of Assembly and receives the Governor's assent, the existing law remains in force. Do not act on social media claims that the bill is already law — but do prepare for the changes it will bring.

How to prepare before the bill becomes law

The bill has not been signed into law yet. It is at the committee stage in the Lagos House of Assembly. But the direction is clear, and the prudent move is to prepare now rather than scramble later.

• Audit your current rent advance and agency fee practices against the bill's provisions
• Ensure LASRERA registration is current for you and any agents you work with
• Move rent collection records into a system that produces auditable receipts and payment history
• Train staff on the new eviction procedures and dispute resolution timelines
• Start documenting comparable rents in your area — you may need them to justify pricing
• Review tenancy agreements to ensure they align with the bill's requirements on notice periods, rent structure, and tenant rights

How Ledge helps with compliance

Ledge is property management software built for Nigeria. Several of the compliance requirements in the new bill — auditable rent records, payment receipts, tenant and lease documentation, fee tracking — are already part of how Ledge works.

If the bill becomes law, property managers using Ledge will already have the documentation infrastructure the law requires. That matters when a tenant challenges a rent increase, when LASRERA audits your fee structure, or when a court asks for proof of proper notice.

• Rent payment history with dates, amounts, and balances for every tenant
• Lease records tied to units, tenants, and billing periods
• Automated rent reminders with a digital trail
• Expense and fee tracking for transparent landlord reporting
• Document storage for tenancy agreements, notices, and receipts