Lagos residents could face lower upfront costs when renting homes if a proposed tenancy bill seeking to restrict advance rent payments and estate agency charges becomes law.
Under the proposed Lagos State Tenancy and Recovery of Premises Bill, landlords would be prevented from demanding more than one year’s rent in advance from new tenants. The legislation also seeks to cap estate agency commission at 5% of the amount paid as one year’s rent.
For a prospective tenant renting an apartment for ₦2 million annually, a 5% agency commission would amount to ₦100,000. The proposed ceiling could significantly reduce the additional costs faced by house hunters, particularly in parts of Lagos where agency charges and other fees can add substantially to the initial cost of securing accommodation.
Brandspur Brand News reports that the proposed changes form part of a wider attempt to regulate landlord-tenant relationships and strengthen oversight of Lagos’ sprawling real estate market.
The bill is currently under consideration by the Lagos State House of Assembly and has not yet become law. The Lagos State Government said in May 2026 that the legislation was at the committee stage, meaning its proposed restrictions should not be treated as rules already in force.
The 5% agency fee proposal has been under consideration since the bill underwent a public hearing in August 2025. Section 3(4) of the draft legislation provides that the commission agreed between an agent and the landlord or tenant who engaged the agent should not exceed 5% of one year’s rent.
Beyond fees, the proposed legislation would tighten regulation of estate agents. Agents operating in Lagos would be required to register with the Lagos State Real Estate Regulatory Authority, while provisions of the bill also require agents collecting rent to issue receipts and remit payments to landlords within the prescribed period.
The reforms could have a direct impact on the finances of millions of residents in Nigeria’s commercial capital. Lagos lawmakers said during the bill’s public hearing that more than 70% of residents are tenants, with many households spending a substantial proportion of their income on rent.
For tenants, the advance-rent restriction could be particularly significant. Raising one or two years’ rent at once can place considerable pressure on household finances, especially when agency and other transaction costs are added to the payment required before moving into a property.
Estate professionals have, however, raised concerns about the proposed 5% commission ceiling. During the public hearing, professional bodies argued that the limit could conflict with established professional charges, highlighting one of the areas of debate surrounding the legislation.
The proposed tenancy reforms are part of the state government’s broader push to improve transparency and accountability in the property market. Lagos authorities have also intensified regulation of estate agents as they seek to curb fraudulent transactions and excessive charges.
If eventually passed and signed into law, the legislation would introduce a new framework governing key aspects of renting property in Lagos, potentially changing how much tenants are required to pay upfront and how much agents can charge for facilitating residential tenancy transactions.
