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New Lagos Tenancy Bill: 5 Ground-breaking Provisions Tenants Need to Know

The Lagos State Tenancy and Recovery of Premises Bill is a huge relief to Lagos tenants, as the proposed reforms are an ambitious attempt to rebalance power among landlords, agents, and tenants, and to bring order to Lagos’ chaotic housing market.
New Lagos Tenancy Bill: 5 Things Tenants Need to Know Now New Lagos Tenancy Bill: 5 Things Tenants Need to Know Now
Source: Resolution Law Firm

In Lagos today, a tenant can pay ₦2 million for a small apartment, add hundreds of thousands in damages, caution and agent fees, and still be compelled to pay two years’ rent upfront. 

Yet after all that, many discover the property has no water or power supply,  issues they are left to resolve alone. Add to that the arbitrary, restrictive rules issued by some landlords, and tenants often find themselves unable to live freely in homes they have fully paid for.

New Lagos Tenancy Bill: 5 Things Tenants Need to Know Now
Source: X/@TrendingEx
New Lagos Tenancy Bill: 5 Things Tenants Need to Know Now
Source; X/@TrendingEx
New Lagos Tenancy Bill: 5 Things Tenants Need to Know Now
Source: X/@TrendingEx

The Lagos State Tenancy and Recovery of Premises Bill is a huge relief especially to Lagos tenants as the proposed reforms is an ambitious attempt in over a decade to rebalance power between landlords, agents and tenants, and to bring order to Lagos’ chaotic housing market.

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The bill passed its second reading on 10 July 2025 and is now before the House Committee on Housing. While it has yet to become law, the five key issues it addresses have already sparked excitement among Lagosians, though many are cautious not to count their chickens before they hatch.

5 Things To Know About The Lagos State Tenancy and Recovery of Premises Bill 2025

1. Regulating Agents and Introducing a 5% Fee Cap

This is one of the most disruptive reforms as it regulates real estate agents. Section 3 mandates that every agent operating in Lagos must be registered with the Lagos State Real Estate Regulatory Authority (LASRERA). The bill also caps agency fees at no more than 5% of annual rent.

New Lagos Tenancy Bill: 5 Things Tenants Need to Know Now
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In practical terms, for a ₦2 million apartment, an agent cannot collect more than ₦100,000. Additional rules include:

  • Agents must remit rent payments to landlords within seven working days
  • Proper receipts must be issued for every transaction
  • Violators face up to ₦1 million in fines, two years imprisonment, or both.

2. One-Year Limit on Advance Rent

For many Lagosians, this clause offers long-awaited relief. The pressure to pay two years rent has pushed countless households into debt, while worsening homelessness among low-income earners.

New Lagos Tenancy Bill: 5 Things Tenants Need to Know Now
Source: X/@Choox_

Key provisions of this rule in this bill include:

  • New tenants cannot be asked to pay more than one year’s rent upfront
  • Existing tenants paying monthly cannot be compelled to pay more than three months in advance
  • Tenants themselves are prohibited from offering payments above these limits
  • Offenders face ₦1 million fines or three months in prison.

3. Illegal Evictions Now a Criminal Offence

The bill takes a firm stand against landlords who eject tenants without legal process.

Under Sections 10(a) and 43, landlords are banned from:

  • Locking tenants out
  • Disconnecting electricity or water
  • Removing roofs
  • Blocking access
  • Using thugs or intimidation

Any attempt to evict without a court order becomes a criminal offence, punishable by:

  • ₦1 million fine, or
  • Up to six months imprisonment.

4. Tenants Can Challenge Unfair Rent Increases

Although the bill does not regulate the price of rent, it empowers tenants to contest unreasonable hikes.

New Lagos Tenancy Bill: 5 Things Tenants Need to Know Now
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Under Section 33, courts may evaluate whether a proposed increase is fair, considering:

  • Rents in similar locations
  • Evidence from both landlord and tenant
  • Any special conditions affecting the property

Importantly, landlords cannot evict tenants while the case is ongoing. This is a critical protection in a state where rent hikes of 50% to 200% are becoming increasingly common.

5. Faster Court Procedures and Stronger Tenant Protections

Sections 20–24 overhaul Lagos’ slow and often frustrating tenancy dispute process.

The reforms include:

  • Eviction cases can now be filed by originating summons
  • Hearings must begin within 14 days
  • Courts may sit on weekends, public holidays, and virtually
  • Mandatory mediation capped at 30 days

The bill also enhances transparency in service charges:

  • Landlords must issue twice-yearly statements accounting for service charge spending
  • Security deposits must be refunded except where documented damages exist

Tenants also gain explicit rights to:

  • Privacy
  • Peaceful occupation
  • Use of common areas
  • Compensation for approved improvements

It might sound too good to be true, and no one knows if the bill will be passed in its current form . Still, the push for a fairer and more regulated housing system is urgent, and Lagos needs it now more than ever.

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