The Lagos State Government has reiterated its position against the exploitative rental practices, warning landlords and agents that tenancy agreement fees must not exceed 10% of the annual rent.
The Special Adviser to the Governor of Lagos State on Housing, Barrister Barakat Odunuga-Bakare, made this known at the 2025 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre, Alausa.
She highlighted the clarity of the Lagos State Tenancy Law, stating that any demand above 10% for agreement or legal fees is a direct violation of the state’s housing regulations.
“The Lagos State Government has reiterated its stance against the imposition of excessive tenancy agreement fees, reminding all stakeholders within the state that the stipulated maximum remains 10% of the annual rent.
“Barr. Odunuga-Bakare underscored the clarity and unambiguous nature of the Lagos State Tenancy Law, stating unequivocally that any landlord or agent found demanding or collecting more than 10 per cent of the annual rent as agreement or legal fees is in direct violation of the state’s tenancy regulations,” the source read in part
Bakare said the government has been overwhelmed with reports of landlords and agents charging exorbitant agreement and commission fees, making life harder for Lagosians.
She urged members of the public not to remain silent but to speak up and report any landlord or agent demanding illegal fees, emphasizing that the government cannot always be present everywhere.
The Special Adviser acknowledged that Lagos’ growing population and rising migration have created opportunities for some to exploit renters, but affirmed the government’s commitment to cleaning the housing sector and protecting residents’ rights.
She also pointed out the ongoing collaboration between the government and recognized associations of real estate agents, noting that many of the offenders are not licensed professionals.
The Lagos State Government urges all residents who encounter demands for tenancy agreement fees exceeding the legally mandated 10% to report such incidents through the Lagos State Real Estate Regulating Authority (LASRERA).
What you should know
The housing situation in Lagos continues to deteriorate, with tenants facing relentless pressure from rising rents and under-regulated charges. In many neighborhoods, rents have more than doubled over the past few years.
- In January 2025, Nairametrics reported that the cost of short-let apartments in Lagos skyrocketed by over 200% last year alone, following a 12.95% increase in 2023 and a 46.4% rise earlier in the same year.
The Lagos State Government’s recent reaffirmation of the 10% cap on tenancy agreement fees aims to address these challenges and protect tenants from exploitative practices. By enforcing this regulation, the government seeks to foster a transparent and more accessible housing market in the state.
