*Majority of Lagos Residents Spend 40-60 Percent of Income on Rent
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Speaker of the Lagos State House of Assembly, Mudashiru Obasa, has said the proposed bill to regulate the relationship between landlords and tenants will slash the agency fee or commission on annual rent from 10 percent to five percent if passed into law.
Obasa, represented by lawmaker Stephen Ogundipe, spoke on Thursday during a one-day public hearing on the bill.
He explained that Section 3(4) of the proposed tenancy law would make it an offence for any agent to collect more than five percent of annual rent. Such an offence, he noted, would attract a penalty of refund, two years’ imprisonment, or a fine of ₦1 million.
The Speaker revealed that Lagos’ housing deficit has risen by 15 percent, from 2.95 million units in 2016 to 3.4 million units in 2025. He added that over 70 percent of Lagos residents are tenants, with many spending between 40 and 60 percent of their income on rent.
According to Obasa, the bill will establish a framework for tenancy agreements, rent payment, property maintenance, and the process for recovery of premises.
Chairman of the House Committee on Housing, Olusegun Ege, said the proposed legislation contains four parts and 45 clauses, addressing tenants’ and landlords’ rights and obligations, rent payment, and dispute resolution procedures.
He added that the bill outlines clear eviction processes to protect tenants from arbitrary evictions, which is essential for stability, especially for families and small businesses.
Section 3(4) of the draft 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.”
However, professional bodies present at the hearing raised concerns over the proposed five percent limit on agency fees, arguing that it conflicts with established professional charges.
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