New Lagos Tenancy Bill Proposes 5% Cap on Estate Agents’ Fees

The Lagos State House of Assembly is pushing forward a new Tenancy Bill aimed at protecting tenants from excessive charges by estate agents, with a key proposal to slash agency fees on annual rent from 10% to 5%.

Hon. Stephen Ogundipe, Chairman of the House Committee on Information, disclosed this in an interview with the News Agency of Nigeria (NAN) on Thursday, following a public hearing on the bill held the previous day.

Ogundipe said the legislation is a direct response to growing public complaints about high fees and exploitation in the real estate sector.

“The new bill currently under consideration by the House is designed to protect the rights of both tenants and landlords,” he stated. “It will also reduce disputes and remove barriers to large-scale housing development by private investors.”

According to him, the bill contains provisions aimed at reducing the financial burden on accommodation seekers while fostering mutual understanding between landlords and tenants.

“A salient provision of the bill is the reduction of agency fees on annual rents from 10 per cent to five per cent,” he noted.

Ogundipe also expressed confidence that the bill would encourage real estate investments and restore investor confidence in the Lagos housing sector.

“This bill will promote mutual understanding, clearly define rights and obligations, and ensure peaceful co-existence,” he said.

The lawmaker commended stakeholders who participated in the public hearing, including government officials, real estate professionals, legal experts, and advocacy groups, saying their contributions would help shape a “progressive and balanced law.”

He further highlighted the need to review existing legal requirements, such as mandating landlords to insure their properties against loss or damage. The proposed law also grants landlords the right to inspect and maintain their properties, provided they give prior notice to tenants.

Wednesday’s public hearing was attended by key figures including Chairman of the House Committee on Housing, Hon. Olusegun Ege; House Majority Leader, Hon. Noheem Adams; and Lagos State Commissioner for Housing, Mr. Moruf Akinderu-Fatai.

Also present were the Senior Special Assistant to the Governor on Housing, Mr. Ayodeji Amodu, and representatives from the Nigerian Institution of Estate Surveyors and Valuers, Nigerian Bar Association, Real Estate Developers Association of Nigeria, Association of Realtors, and the Real Estate Agents Association of Nigeria, among others.