Lagos Tenancy Bill Proposes Reduction of Agent Fees to 5%

Lagos, Nigeria — Efforts to ease the financial burden on accommodation seekers in Lagos State have gained momentum as the House of Assembly considers a new tenancy bill aimed at cutting agency fees on annual rents from 10 per cent to 5 per cent.

Speaking on Thursday in Lagos, the Chairman of the House Committee on Information, Ogundipe, told the News Agency of Nigeria (NAN) that the bill was crafted in response to mounting public complaints over excessive charges by property agents.

The announcement follows a public hearing on the bill, held on Wednesday by the House, which brought together key stakeholders from the housing and legal sectors.

“The new bill currently under consideration by the House is designed to protect the rights of both tenants and landlords. It will promote mutual understanding, clearly define rights and obligations, and ensure peaceful co-existence,” Ogundipe said.

He stressed that the legislation seeks to resolve recurring disputes between landlords and tenants, stimulate real estate investment, and restore investor confidence in the property market. By lowering agency fees and addressing contentious tenancy issues, he added, the bill could also encourage large-scale housing development by private investors.

Ogundipe further highlighted provisions requiring landlords to insure their premises against loss or damage, and granting them the right to inspect and maintain properties after giving tenants prior notice.

“This law will open up opportunities for new financiers, foster harmony in landlord-tenant relations, and help create a more vibrant housing sector,” he noted.

The public hearing was attended by the Chairman of the House Committee on Housing, Olusegun Ege; House Majority Leader, Noheem Adams; Commissioner for Housing, Moruf Akinderu-Fatai; and Senior Special Assistant to the Governor on Housing, Ayodeji Amodu.

Also present were representatives from the Nigerian Institution of Estate Surveyors and Valuers, Nigerian Bar Association, Real Estate Developers Association of Nigeria, Association of Realtors, and the Real Estate Agents Association of Nigeria, among others.

By Adeola Olaniya | August 14, 2025