The Lagos State House of Assembly yesterday hosted a public hearing on a new bill aimed at regulating landlord-tenant relationships and addressing the state’s mounting housing crisis. The proposed legislation, formally titled “A Bill for a Law to Regulate the Relationship Between Landlords and Tenants, Including the Procedure for the Recovery of Premises in Lagos State,” seeks to establish clearer legal frameworks in a market where over 70% of residents are renters.
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The public hearing was chaired by Hon. Ege Olusegun Adebisi, Chairman of the Lagos State House of Assembly Committee on Housing, with the Speaker represented by Hon. Kayode Ogundipe. Committee Chairman Olabisi revealed that despite a 15% increase in housing units since 2016, rising from 2.95 million to 3.4 million units, the majority of Lagos residents continue to spend between 40-60% of their monthly income on rent, creating significant financial strain.
The 45-clause bill, structured into four comprehensive parts, addresses key issues including rent payment procedures, dispute resolution mechanisms, and eviction processes. “The bill will clarify rights and obligations, prevent arbitrary evictions, promote mediation and expedite legal processes,” Olabisi stated during the hearing.
Lagos State Commissioner for Housing, Moruf Akinderu-Fatai, welcomed the legislation as “paramount importance” to the state, highlighting persistent challenges in the sector beyond basic supply and demand issues. He specifically called for reviews of tax obligations on rental income to prevent double taxation and alignment with current federal insurance laws affecting real estate.
Attorney General and Commissioner for Justice, Lawal Pedro, made a compelling case for swift passage, citing a real-life example of a tenant with five years of unpaid rent totalling ₦78 million to illustrate the current system’s failings. Pedro argued that the existing court system’s sluggishness threatens the commercial viability of real estate investment in Lagos State.
The bill proposes significant reforms, including standardised agency fees, with moves to slash tenancy agency fees by half, and stricter lawsuit requirements where tenants must demonstrate they have paid all outstanding rent, service charges, and utility bills before pursuing legal action against landlords. Pedro expressed confidence that these measures could resolve most tenancy cases within three to six months.
In a related development, the state’s real estate market is simultaneously preparing for its annual “Detty December” boom, as Lagos tackles its regulatory challenges, with diaspora buyers increasingly targeting the Lekki-Epe corridor. Industry analysts report that Nigerians in the diaspora now comprise nearly 80% of buyers during the December season, focusing primarily on Ibeju-Lekki and Epe areas.
Major developments driving this interest include the Lekki Aviation Town facing the upcoming Lekki-Epe International Airport, the Parliament Estate near Pan Atlantic University, and GranVille Estate along Eleko Beach Road leading to the Dangote Refinery. These infrastructure projects are significantly boosting property values and investor confidence.
Current market data shows prices holding firm across the corridor: 2-bedroom apartments start at ₦54 million, terraces at ₦97 million, 3-bedroom bungalows at ₦85 million, and luxury duplexes ranging up to ₦227 million. Companies like Harmony Gardens and Estate Development Ltd. are capitalising on tighter financing conditions by offering innovative payment plans, including their Harmony Renewed Hope Mortgage System and Ibile Traditional Mortgage System with single-digit interest rates over five years.
Dr. Saheed Mosadoluwa, known as “The Lagos Landlord” and the force behind Harmony Gardens’ seven developing estates called “The Seven Citadels of Joy,” noted that the company offers rent-to-own options with 60-month repayment terms at single-digit annual interest rates, or extended 30-year financing through Federal Mortgage Bank interventions.
The December surge coincides with a booming short-let market, as international visitors and diaspora families drive up rental rates in premium areas like Ikoyi, Victoria Island, and Lekki. Harmony Gardens’ estates, positioned within 25 minutes of these hubs, are attracting investors seeking high holiday yields.
Beyond location advantages, buyers are becoming more sophisticated, demanding transparency on fraud risks, drainage systems, flood zones, and energy efficiency. The combination of the Dangote Refinery, Lekki Free Trade Zone, and the upcoming international airport continues to drive property values upward, with experts predicting sustained growth in the corridor as “Detty December” approaches.
The convergence of regulatory reform through the new tenancy bill and the seasonal real estate surge reflects Lagos State’s dual approach to addressing housing challenges while capitalising on market opportunities, particularly from its diaspora population.
Positive Developments
The new tenancy bill offers several protections that could benefit ordinary tenants. It aims to prevent arbitrary evictions, establish clear dispute resolution mechanisms, and expedite legal processes – potentially resolving tenancy cases within 3-6 months instead of dragging on for years. The proposed standardisation of agency fees and moves to slash them by half could provide immediate financial relief, as these fees are often a major burden for renters.
The bill also seeks to prevent landlords from using the court system as “a tool of oppression,” which historically has favoured those with deeper pockets. This could level the playing field somewhat for average tenants.
However, the underlying affordability crisis persists.
Over 70% of Lagos residents are renters, spending 40-60% of their monthly income on housing, well above the recommended 30% threshold. Even with a 15% increase in housing units since 2016, demand still far outstrips supply.
The properties highlighted above – ranging from ₦54 million for a two-bedroom apartment to ₦227 million for luxury duplexes – remain far beyond the reach of ordinary Lagos residents. These developments primarily target diaspora buyers and high-income earners.
The realistic outlook
While the tenancy bill represents important regulatory progress that could reduce exploitation and provide better legal protections, it doesn’t directly address the fundamental affordability crisis. The “common man” may benefit from fairer treatment and clearer rules, but finding genuinely affordable housing remains a challenge unless the government simultaneously tackles supply constraints and implements targeted low-income housing programmes.
The bill is more about making the rental process fairer rather than making it cheaper, which is still valuable progress but not a complete solution to Lagos’s housing accessibility problem.
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