The speaker of the Lagos House of Assembly, Mudashiru Obasa, claims that if the proposed bill to govern the relationship between landlords and tenants is approved, the agency fee or commission on yearly rent will be lowered from 10% to 5%.
During the bill’s one-day public hearing on Wednesday, Obasa gave a speech. Section 3(4) of the proposed tenancy law, according to Obasa, who was represented by lawmaker Stephen Ogundipe, will make it illegal for any agent to collect more than 5% of the rent each year.
The speaker stated that such an agent is guilty of a crime that carries a fine of N1 million, two years in prison, or a refund.
Obasa went on to say that the housing shortage in Lagos increased from 2.95 million units in 2016 to 3.4 million units in 2025, a 15% increase.
According to him, more than 70% of Lagos residents rent, and many of them spend between 40% and 60% of their income on rent. He pointed out that the bill will establish a framework for tenancy agreements, rent payments, upkeep of the property, and the procedure for property recovery.
The proposed legislation covers rights, obligations, tenancy agreements, rent payments, and dispute resolution procedures. It consists of four parts and forty-five clauses, according to Olusegun Ege, chairman of the housing committee.
According to Ege, the law provides precise eviction guidelines to shield renters from capricious evictions, which is crucial for stability, particularly for small businesses and families.
Section 3(4) of the proposed law’s draft states that “a commission or agency fee in respect of any tenancy shall be agreed upon by the Agent and the Landlord or Tenant who engaged the agent, and the amount shall not exceed 5% of the amount paid as one year’s rent.”
Professional organizations, however, expressed disapproval of the five percent agency fee cap during the public hearing, claiming that it goes against accepted professional fees.
