Speaker of the Lagos house of assembly, Mudashiru Obasa has stated that the proposed bill to regulate the relationship between landlords and tenants will reduce the agency fee or commission on annual rent from 10 to five percent if passed into law.
Obasa, who was represented by a lawmaker, Stephen Ogundipe spoke during a one-day public hearing on the bill.
He said section 3(4) of the proposed tenancy law will make it an offence for any agent collecting more than five percent of annual rent.
The speaker said such an agent commits an offence punishable by refund, two years’ imprisonment, or a fine of N1 million.
Obasa added that Lagos’ housing deficit had risen by 15 percent, from 2.95 million units in 2016 to 3.4 million units in 2025.
He said over 70 percent of Lagos residents are tenants, with many spending 40 to 60 percent of their income on rent.
The bill, he noted, will provide a framework for tenancy agreements, rent payment, property maintenance, and the process for recovery of premises.
Olusegun Ege, chairman of the committee on housing, said the proposed legislation has four parts and 45 clauses and addresses rights, obligations, tenancy agreements, rent payments, and dispute resolution procedures.
Ege said the legislation outlines clear eviction procedures to protect tenants from arbitrary evictions, which is important for stability, especially for families and small businesses.
“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,” section 3(4) of the draft of the proposed law reads.
However, professional bodies at the public hearing raised concerns over the five percent agency fee limit, saying it conflicts with established professional charges.
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