The rent debate in Lagos is heating up, and all eyes are now on the Lagos State House of Assembly. This comes after Enugu State took a bold step by introducing a bill aimed at curbing the excesses of landlords. In Lagos, where rent hikes and exorbitant agency fees have become the norm, the question remains: will Lagosians get relief anytime soon? IBRAHIM ADAM reports
It was Jubril Gawat, Senior Special Assistant on New Media to the Lagos State Governor, Babajide Olusola Sanwo-Olu, who stirred the conversation when he quoted the Enugu bill on his X handle, writing: “LAGOS … Coming Soon. A very strong issue but must be well discussed and implemented after deliberation by the Lagos House of Assembly.”
His follow-up post added fuel: “Under this tweet, Landlords and Tenants are tackling themselves and sharing very interesting perspectives. Very nice.”
With Lagos residents grappling with skyrocketing rents, many hope the conversation will lead to concrete action.
What the Lagos tenancy law says
The Lagos State Tenancy Law of 2011 provides some legal protection for tenants against unreasonable rent increases. Section 37 allows tenants to challenge excessive rent hikes in court.
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However, the law has loopholes. High-value areas like Ikoyi, Ikeja GRA, Victoria Island, and Apapa are exempted, leaving tenants in these locations vulnerable.
Moreover, Section 37 (2) gives no clear limit on how much landlords can increase rent; meaning rent hikes could still be astronomical.
Learning from Enugu blueprint
The Enugu State House of Assembly recently introduced the bill for a law to amend the Landlord and Tenant Law, which aims to cap agency and legal fees at 10% of annual rent, abolish caution fees, and penalise violations with fines of up to N500,000 or six months in prison.
The bill also seeks to define eviction processes to prevent fraudulent evictions and ensure that only certified agents operate in the state.
Entitled “the Bill for a Law to Amend the Landlord and Tenant Law, CAP. 101, Laws of Enugu State, 2024,” the proposed legislation sponsored by member representing Nkanu East State Constituency, Okey Mbah, underwent the first reading on Tuesday.
Mbah said: “The ills it seeks to address are widespread and generally suffered by our constituents.”
Landlords: Defending the price surge
For many landlords, the rising cost of rent is a necessary evil. They cite high construction costs and economic instability as reasons for the hike.
A landlord in Surulere confidently told our reporter: “If you don’t take this house for N1m, I can bet with you that before next weekend, I will give it out for N1.5m annual payment.”
Another landlord in Somolu was even blunter: “It is my house, and I will give it out at what I choose to. The government did not build this house for me. If you cannot pay N1.3m annually, you can try another place.”
On social media, some landlords echoed these sentiments. Cheryl deBlaq wrote: “I only collect rent & agreement fee of #50k. I don’t use agents. The Lagos laws favour tenants more than homeowners, and that’s why many homeowners are selling or converting properties to hotels.”
While some landlords defend their actions, others like Omotoso, a landlord in Lagos, admitted: “Some landlords are simply wicked shylocks with the amount they charge for rents in Lagos. The government must do something about landlords and their partners in crime, estate agents.”
Tenants: Voices of frustration, desperation
For tenants, the story is one of hardship and frustration. Rent increases without prior notice, excessive agency fees, and steep caution fees are making life unbearable.
Reacting to Gawat’s post, Olajide Taiwo, a Lagos resident, voiced concerns about the gap between legislation and enforcement, lamenting: “Egbon, it’s one thing enacting laws and another thing implementing them. My rent has been increased twice in just three years, with a 70% hike each time.”
Other residents shared similar experiences. One tenant disclosed, “Mine was increased three times in four years. The last one was over a 50% hike. Increases are at par with the dollar’s upward movement but never come down. God dey help us still.”
Akereyejo emphasised the strain of living in Lagos, highlighting how landlords are quick to complain about rising costs while tenants bear the brunt.
“Seriously, living in Lagos is almost becoming unbearable for tenants. This has to be addressed. The government is building infrastructures with taxpayers’ money, but landlords are the ones complaining about cement prices.” Akereyejo said.
Beyond rent, hidden charges such as agency fees, caution fees, and legal costs are also weighing heavily on tenants.
Oluwaseun Tijani pointed out: “The rent itself isn’t the problem; it’s the agency fees, caution fees, and legal fees. There should be laws regulating how and when rent increases occur.”
Capturing the frustration in a blend of humour and seriousness, Raheem Azeez Arisekola wrote: “House rent 150k per annum, agent and commission 250k, caution fee 50k. Total package 450k. Lagos scared me a lot… haha.”
The latest complaint comes from Wahab, a tenant who shared his ordeal with escalating rent demands.
“My landlord increases house rent yearly. When I wanted to get the apartment, the landlord told me N600,000, and I begged for N500,000.
“But because I needed accommodation, I had to get it. I later discovered that the tenants I met there were paying N450,000.” Wahab recounted.
The situation worsened when the landlord issued an ultimatum. “As of yesterday, the landlord has asked them to pack out if they cannot afford N600,000,” Wahab added.
Agents and market dynamics: The middlemen’s role
Agents are also central to the conversation, often accused of driving up costs through excessive fees.
Our reporter found out that in areas like Agege, Surulere, Somolu, and Bariga, a room and parlour self-contain goes for N1m to N1.7m annually, with additional agreement, commission, damages, and legal fees between N700,000 and N900,000.
While a room self-contain between N700, 000 and N1.2m with agreement, commission, damages and legal fee between N500, 000 and N700, 000.
Abimbola, a prospective tenant, shared a shocking revelation: “A shop rent at 500k, agreement 250k, commission 250k, caution 50k, agent fee 5k. Just this morning! I asked the agent if he could pay such for that size of shop; he went cold.”
Another X user questioned: “Is there a way they can eradicate agreement and commission fees or, better still, set a standard price? Agreement and commission dey frustrate boiz gan.”
Sanwo-Olu advocates rental policy
Thankfully, Governor Sanwo-Olu is also championing a transformative housing initiative – the Monthly Rental Payment System.
Speaking at the 10th National Council on Lands, Housing, and Urban Development meeting in Lagos last year, Sanwo-Olu emphasised the burden of annual rent obligations on low and middle-income earners.
He highlighted the state’s existing rent-to-own programme, requiring a modest five per cent down payment and a six per cent simple interest rate over 10 years.
However, recognising that not all residents are ready for homeownership, the governor revealed plans for a purely rental system, allowing residents to pay rent monthly. This approach is designed to ease financial pressure and make housing more accessible.
Special Adviser on Housing, Barakat Odunuga-Bakare, reinforced the governor’s commitment.
She announced that the monthly rental scheme would launch by the end of 2024 or early 2025, starting with the public sector where earnings are easily verifiable. If successful, it will extend to the private sector.
The state earmarked N5 billion for this scheme, underscoring its dedication to perfecting the initiative before rollout.
Odunuga-Bakare pointed out that aligning rental payments with tenants’ earnings would not only enhance affordability but also stabilise the housing market.
Fashola, others advocate monthly payment of rent
Former Lagos State Governor and ex-Minister of Power, Works, and Housing, Babatunde Fashola, alongside key real estate stakeholders, is also backing the shift to a monthly rent payment system.
At the Wemabod Real Estate Outlook 2025 event themed “Real Estate Development: A Catalyst for Nigeria’s Economic Recovery” in Lagos, Fashola argued that synchronising rent payments with monthly salaries could halt inflation and stabilise the economy.
Fashola’s perspective is echoed by Group Managing Director of Odu’a Investment Company Limited, Abdulrahman Yinusa.
Yinusa stressed the importance of employer involvement, suggesting that employers guarantee rental payments by deducting rent from salaries.
This assurance, he believes, would encourage landlords to accept monthly payments, knowing their income is secure.
Managing Director and Chief Executive Officer of Wemabod Limited, Bashir Oladunni also praised the monthly rental concept.
He noted that while tenants would find it easier to meet their obligations, landlords’ interests must also be safeguarded. Given that many landlords rely on rental income to offset development loans, he added that the government must establish regulations balancing the needs of both parties.
Oladunni revealed that Wemabod, backed by six states of the federation, is exploring the monthly rental model as part of its strategic plan to expand its housing portfolio by 500 units over the next five years.
Economists and policy experts: To regulate or not?
While many demand government intervention, some experts warn against overregulation.
Abayomi Odekoya wrote: “Government intervention should not be to control rent, as it will reduce the incentive to invest in the housing market. If supply is low, rent will skyrocket, and undercover payments will become the norm.”
However, another user argued: “Truth remains that government cannot fold its hands and watch hawkish landlords drive up inflation by arbitrarily jacking up rents. In most parts of Europe, the law limits landlords to increase rents based on conditions like adjusted inflation and property value.”
Another user added: “Ko kan ye o! This is private business; if you want rent to be cheap, build government houses and rent then at giveaway prices. When I dey buy Dangote Cement, una no help me, when I dey settle Omo onile, una no dey there. When I want to benefit, you want regulate me? Ki lo de?”
Will Lagos take the leap?
With the Lagos rental market spiraling and tenants crying out for relief, the state’s next steps are eagerly awaited. As Jubril Gawat hinted, the public hearing for any incoming law promises to be interesting. The question remains: will Lagos adopt a framework similar to Enugu’s, or will the landlords’ lobby prove too strong?
For now, Lagosians continue to hope for a fairer system, one where rent prices align with reality, and the dream of living in Lagos does not become a financial nightmare.
