It is no longer news that renting homes in Lagos has been a burdensome experience for both tenants and landlords. Numerous reports have highlighted exorbitant rent increases, unlawful self-help evictions carried out without proper notice, leaving many homeless and struggling to cope with rapidly rising housing costs. The Lagos rental framework was regulated by the Tenancy Law Cap. T1 Laws of Lagos State 2015, Rent Control and Recovery of Residential Premises Law 1997(“RCRP Law”)[1] and Recovery of Premises Law (“RPL”)[2] . These laws have faced extensive criticism for weak enforcement, outdated procedures, lenient penalties, and their overall inability to provide an effective regulatory framework for landlord–tenant relationships[3]. These laws, nevertheless, provided some level of protection for tenants. Notably, the law limited how much advance rent a landlord may demand, required written receipts for payments of rent, issuance of notices before eviction or termination of tenancy, and required landlords to seek the order of a court for recovery of possession[4].
Notwithstanding these protections, the Lagos State Tenancy Law 2015 expressly excluded its application to certain areas in the state, including: (i) residential premises owned or operated by educational institutions for the use of their staff or students; (ii) residential premises provided as emergency shelter; (iii) residential premises in a care, hospice or mental facility; and (iv) residential premises made available in the course of providing rehabilitation or therapeutic treatment[5]. The Law also exempted areas such as Apapa, Ikeja GRA, Ikoyi, and Victoria Island, but failed to specify what should and should not apply within these exempted areas. Furthermore, the law did not confer on the Governor the authority to issue delegated legislation to regulate these areas, thereby leaving these exempted areas without corresponding legislation.
In response to these challenges, the Lagos state House of Assembly moved to enact the Lagos State Tenancy and Recovery of Premises Bill 2025, aimed at modernizing and strengthening Lagos rental framework in the state, by improving and extending its reach and application across all areas in Lagos State, sharply curbing advance-rent practices, regulating estate agents and fees, introducing quicker and virtual-enabled dispute resolution mechanisms, and streamlining eviction and recovery processes[6].
This article examines the Lagos State Tenancy and Recovery of Premises Bill 2025, highlighting their key innovations, comparisons, potential challenges, and recommendations.
Key Innovations of the Tenancy and Recovery of Premises Bill, 2025
The Bill seeks to broaden the regulatory framework governing tenancies to encompass the entirety of Lagos State, including areas that were previously exempted, such as Ikoyi, Victoria Island, Apapa, and Ikeja GRA[7]. Under the Tenancy Law 2015, these areas were explicitly excluded, remaining subject to the outdated provisions of the RCRP Law and RPL. This exclusion created challenges for tenants and facilitated potential exploitation, as the existing legal framework did not adequately safeguard rights aligned with the contemporary real estate sector.
Section 2(1)(2) of the Bill[8], proposed that the law will apply uniformly to all premises within the State, encompassing both residential and commercial properties. This uniform application is intended to promote consistency, mitigate exploitative practices in high-value areas, and enhance legal certainty across the state’s rental market. By extending the law protections statewide, the Bill ensures that tenants’ rights and landlords’ obligations are clearly defined and enforceable across the state, promoting a fairer and more transparent rental market.
Advance Rent
The Bill prohibits landlords or agents from demanding from a sitting, or new tenants, more than three (3) months’ advance rent for a monthly tenancy and more than one (1) year’s rent for a yearly tenancy. Non-compliance with these provisions attracts a fine of One Million Naira or imprisonment for three (3) months[9]. This contrasts with the Lagos Tenancy Law of 2015, which permits up to six (6) months rent in advance for a monthly tenancy and one (1) year for a yearly tenancy[10].
Power to Sit on Weekends and Public Holidays
Court proceedings under the RCRP Law and the Tenancy Law 2015 are frequently subject to uncontrolled delays. Such delays may prompt landlords to resort to self-help measures to protect their rights, while tenants may exploit protracted proceedings to their advantage; for example, by delaying rent payments until the suit is resolved. The Bill seeks to address this issue by granting courts the discretion to hold hearings on weekends, public holidays, or during periods of industrial action, provided that parties consent[11]. The objective of this provision is to ensure that tenancy disputes, particularly those involving urgent matters such as unlawful evictions, are not delayed by strict court schedules or external interferences.
This reform is intended to facilitate a more timely and efficient resolution of tenancy disputes and to enable courts to respond effectively to the urgency inherent in landlord-tenant conflicts. Nonetheless, its practical impact may be limited, as the decision to convene such sessions remains entirely at the discretion of the court. Judges are unlikely to sit on weekends or holidays except in cases of exceptional urgency[12].
Registration by Agents
Given the critical role of agents in real estate transactions and the significant financial impact of their fees on tenancy agreements, real estate agents must operate under clearly defined regulatory standards. The Lagos State Real Estate Regulatory Authority Law, 2021 (“LASRERA”) was enacted to address these concerns. However, the provisions of the LASRERA law have frequently been disregarded by real estate practitioners, highlighting ongoing challenges in enforcement and compliance. The proposed Bill seeks to strengthen the regulatory framework by mandating that any individual acting as a real estate agent, whether on behalf of a landlord or a tenant, must be duly registered with LASRERA[13]. This measure reinforces the Authority’s regulatory power within the real estate sector while imposing stricter duties on agents to conduct themselves fairly and transparently.
An agent who collects rent from a prospective tenant is prohibited from collecting rent for the same property from another party while retaining the initial payment. Agents are required to remit rent to the landlord within seven (7) working days of collection, unless otherwise instructed in writing by the landlord[14], they must also issue receipts for all payments received. Agency commissions are capped at a maximum of five percent (5%) of one year’s rent, thereby limiting excessive charges and promoting fairness in tenancy transactions[15].
The bill further provides that non-compliance with any of these provisions constitutes an offence, punishable by a fine of One Million Naira or imprisonment for a term not exceeding two (2) years, or both[16], in addition to repayment of any unlawfully collected fees. By reinforcing LASRERA’s authority, the Bill aims to professionalize agency practices, eliminate exploitative conduct in real estate transactions, and enhance transparency and accountability in landlord-tenant relationships. Ultimately, it ensures that only duly authorized and registered professionals may act as intermediaries in the real estate market.
Length of Notice and Service
The Bill removed the requirement on landlords to serve a Notice to Quit where a tenant is in arrears of rent beyond the legally prescribed period. In such cases, the tenancy is deemed automatically determined, and the landlord is required only to serve a seven (7) day written Notice of Owner’s Intention to Recover Possession[17]. The Bill also broadens the permissible modes of service for business premises, allowing service on a director, secretary, trustee, senior or principal officer of a corporate body, or by leaving the notice at the organization’s place of business[18].
Rights and Obligations of Landlords
The Bill sets out a comprehensive list of landlords’ rights, clearly defining what they are legally entitled to during a tenancy[19]. They are prohibited from disturbing quiet enjoyment, cutting off utilities, or seizing tenant properties[20]. Unlike the Tenancy Law 2015, which primarily addresses landlords’ obligations[21]. The Bill explicitly granted landlords the right to inspect a property during the tenancy, provided prior notice is given, to ensure it is used for lawful purposes. It also affirms their entitlement to demand and collect service charges where applicable[22]. By codifying these rights, which previously existed only by implication, agreement, or practice, the Bill aims to create a clearer balance between tenant protection and landlord control[23]. The Bill also provided that a tenant has the right to quiet and peaceable enjoyment of the premises, which includes the right to (a) privacy; (b) freedom from unreasonable disturbance; (c) exclusive possession of the premises; and (d) the use of common areas for reasonable and lawful purposes[24]. It further grants compensation for improvements made on the property with the landlord’s consent[25].
Proceedings and Appeal
Before instituting an action in either the magistrate or the High Court, a tenant must file originating processes accompanied by:
- Evidence of up-to-date payment of rent;
- Evidence of up-to-date payment of utility bills;
- An undertaking to maintain the premises in habitable condition; and
- An undertaking to continue paying rent and utility bills during the pendency of the suit[26].
For an appeal to be validly filed, the tenant must obtain leave of court and accompany the application with, among other things:
- Evidence of payment of outstanding arrears of rent and utility bills, if any; and
- An undertaking to continue paying rent or mesne profits and utility bills until possession is delivered to the landlord[27].
A landlord appealing a decision must also provide an undertaking not to disturb the tenant’s peaceful possession pending the determination of the appeal. These provisions significantly enhance protections for landlords while simultaneously safeguarding tenants’ rights to possession during litigation.
Additionally, the Bill allows a tenant to challenge an increase in rent by applying to the court for a declaration that the increase is unreasonable. During the pendency of such an action, the landlord is prohibited from evicting the tenant. Where the court finds the increase unreasonable, it may substitute a reasonable rent after considering statutory factors[28].
Virtual Hearing
The Bill introduces virtual hearing sessions for tenancy disputes in recognition of technological advancements and to enhance convenience for both litigants and courts[29]. This development is progressive and modernizes the tenancy dispute-resolution mechanisms in Lagos State.
Possible Challenges
- Enforcement and Institutional Capacity: Even with strong legal provisions, enforcement remains a major problem in Nigeria’s rental market. Courts and tribunals are often slow and under-resourced, meaning tenants and landlords may still face long wait times in resolving disputes. Some landlords or agents may continue or resort to using informal agreements to avoid compliance. Weak enforcement can make the law less effective and perpetuate old problems under a new name.
- Informal or Unregistered Market Practices: The proposed legislation mandates that all real estate practitioners must register with Lagos State Real Estate Regulatory Authority (LASRERA) and caps fees at 5%, but many agents currently operate informally. Unregistered agents might operate outside the law, creating an uneven rental structure. Tenants and landlords may avoid the regulatory framework, undermining consumer protection.
- Economic Impact on Landlords: Some landlords and developers fear that tighter regulation, particularly caps on advance rent and limited agent commissions, could reduce financial returns and increase perceived investment risk. Its potential effects are that some landlords may raise base rents to offset loss of upfront cash, which may reduce interest in rental properties, possibly shrinking available housing supply over time if not paired with supportive policy.
- Awareness and Compliance Gap: Many tenants, landlords, and agents may lack awareness of their new rights and responsibilities. Without effective public awareness, the law could be misunderstood or ignored.
- Administrative Burden and Dispute Backlogs: Even with accelerated court timelines (e.g., hearings within 14 days), courts may be overwhelmed with cases[30].
Recommendations
- Strengthen Enforcement Mechanisms: Fund and train specialised tenancy tribunals with dedicated staff and judges to expedite disputes.
- Introduce clear procedural guidelines and performance metrics (e.g., time limits for case resolution). This will enhance faster, more consistent enforcement that deters abuses.
- Broaden Public Awareness: creating awareness via radio, TV, or online platforms to explain rights and obligations.
- Expand and Enforce Registration of Agents: Ensuring that real estate professionals are mandatorily registered, with strict penalties for unregistered practice, will help to reduce fraud and promote accountability.
Conclusion
The Lagos Tenancy and Recovery Premises Bill, 2025 constitutes a significant reform aimed at establishing a fair, transparent regulatory framework for the state rental market. The Bill is expected to reduce the financial obligations on tenants, curtail exploitative practices, and foster a peaceful relationship between landlords and tenants across Lagos State. Although existing legislation provides certain protections, the enactment of this Bill is poised to comprehensively restructure the Lagos real estate sector, ensuring a system that equitably serves the interests of all. These provisions represent a clear departure from the Lagos State Tenancy Law, 2015, as the Bill seeks to safeguard both landlords and tenants from exploitation by agents and firmly criminalizes non-compliance.
[1] Rent Control and Recovery of Residential Premises Edict No. 6, 1997 of Lagos State
[2] Recovery of Premises Law, Cap. 118, Laws of Lagos State 1973
[3] Sola Enitan, ‘Lagos Tenancy Law: Between regulating landlords and building affordable homes’ Guardian (Lagos, July 2025) >Accessed 1st December, 2025
[4] https://www.vanguardngr.com/2025/12/new-lagos-tenancy-bill-what-landlords-tenants-and-agents-should-know/ > Accessed 1st December, 2025
[5] Section 1(2) Lagos State Tenancy Law, 2015
[6] https://lagoshouseofassembly.gov.ng/home/lagos-state-tenancy-and-recovery-of-premises-bill-2025-draftlagosstate/> Accessed 1st December, 2025
[7] The Tenancy Law Cap. T1 Laws of Lagos State 2015, s 1(3)
[8] Ibid
[9] Section 5(1)(2)(3)(4) and (5) Lagos State Tenancy and Recovery of Premises Bill, 2025.
[10] Section 4 (1)(2)(3)(4) Tenancy Law of Lagos State 2015.
[11] Section 31(1) Lagos State Tenancy and Recovery of Premises Bill,2025
[12]https://alp.company/sites/default/files/ALP%20Review%20on%20Reforming%20Tenancy% > Accessed 5th December, 2025
[13] The Bill, s 3; See also the Lagos State Real Estate Regulatory Authority (LASRERA) Law 2021, s 1
[14] Section 3(3) Lagos State Tenancy and Recovery of Premises Bill,2025.
[15] Section. 3(4) Lagos State Tenancy and Recovery of Premises Bill,2025.
[16] Ibid S. 3(5)
[17] Section 14 (2)(3)(4)(5) Lagos State Tenancy and Recovery of Premises Bill,2025.
[18] Section 17 (b) and (c) Lagos State Tenancy and Recovery of Premises Bill, 2025
[19] ibid s 9,
[20] Ibid s.10(a)-(d))
[21] Section 8 Lagos State Tenancy Law 2015
[22] Section 12, Lagos State Tenancy and Recovery of Premises Bill,2025
[23] https://alp.company/node/456//Reforming Tenancy in Lagos_2 > Accessed 5th December, 2025
[24] Section 7(1) Lagos State Tenancy and Recovery of Premises Bill,2025
[25] Ibid S. 7(2)
[26] Section 22(5) Lagos State Tenancy and Recovery of Premises Bill,2025
[27] Section 25 (c) and (d) Lagos State Tenancy and Recovery of Premises Bill,2025
[28]Section 33 Lagos State Tenancy and Recovery of Premises Bill, 2025.
[29] Section 32 Lagos State Tenancy and Recovery of Premises Bill, 2025.
[30] Ibid Section 24