LAGOS, Nigeria — A proposed bill before the Lagos State House of Assembly will reduce agency fees on annual rent from 10 percent to five percent and make it a criminal offence to charge above that threshold.
Speaker Mudashiru Obasa, represented by lawmaker Stephen Ogundipe, disclosed this on Wednesday, August 13, 2025, at a one-day public hearing on the bill.
He said section 3(4) of the proposed tenancy law stipulates that any agent who collects more than five percent commits an offence punishable by refund, a fine of up to ₦1 million, or two years’ imprisonment.
Obasa noted that Lagos’ housing deficit has increased by 15 percent in less than a decade, from 2.95 million units in 2016 to 3.4 million units in 2025, with over 70 percent of residents living as tenants and spending between 40 and 60 percent of their income on rent.
The bill, according to the Speaker, will provide a clear framework for tenancy agreements, rent payment, property maintenance, and the process for recovering premises.
Olusegun Ege, chairman of the assembly’s committee on housing, said the draft contains four parts and 45 clauses covering rights, obligations, rent payments, tenancy agreements, and dispute resolution mechanisms.
He added that it sets out clear eviction procedures to protect tenants from arbitrary removals, particularly benefiting families and small businesses.
Section 3(4) of the bill reads: “A commission or agency fee in respect of any tenancy shall be agreed upon by the Agent and the Landlord or Tenant who engaged the agent, and the amount shall not exceed 5% of the amount paid as one year’s rent.”
