Professionals in the real estate sector of the economy, especially estate surveyors and valuers, developers and others, have faulted the proposed Lagos Tenancy Bill, seeking amendments before its final passage into law.
The professionals argue that if the identified gaps in the bill are amended accordingly, the new law will help to sanitise the rental market, promote investment in the sector, create confidence for real estate investors and open up opportunities for estate financiers.
Some of the grey areas identified by stakeholders during the public hearing on Lagos State Tenancy Bill 2025 at the Lagos State House of Assembly included sections 3(1), 3(3), 3(3b), 5(3), 5(4) and (5)6 among others.
Some of the sections have to do with who qualify as estate agents, issues of agency fees from 10 per cent to five per cent, payment of rent beyond one year, recovery of property and the rest.
In a position paper presented by the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos branch, led by its Chairman, Tosin Kadiri, the group made it known that the goal of the memorandum was to create a framework that effectively serves the interests of Lagos people, investors, practising estate surveyors and valuers and all stakeholders involved in the built environment.
“We will leverage our expertise to advocate for provisions that enhance operational efficiency, promote sustainable development and protect the rights of all parties involved in the real estate sector,” it read.
“This submission aims to clarify specific aspects of the bill that require harmonisation to support property owners, investors, tenants and professionals, thus facilitating the effective implementation of the law.
“We are confident that our contributions will enhance the development of a robust and equitable legislative framework that protects the interests of all parties involved in the real estate sector,” the paper added.
The group requested that estate surveyors and valuers be explicitly incorporated into Section 3(1) of the bill to acknowledge and uphold the regulatory authority of ESVARBON; prevent any encroachment on the board’s jurisdiction; and safeguard the rights of estate surveyors and valuers to practice their profession.
According to the group, incorporating the ESVARBON in the bill will ensure a cohesive and effective regulatory framework that respects the board’s authority, preserves the integrity of the profession and protects the rights of professionals in the field.
On the issue of rent collection by agents and remittance within seven working days to the landlord as captioned in Section 3(3) of the bill, the group proposed amendment in Section 3(3a) read: “An agent who collects rent from a tenant at the inception of a tenancy shall remit the same within a reasonable period following the handover of the premises and the execution of necessary tenancy documents, unless otherwise directed by the landlord, and such funds collected shall be receipted.
“Section 3(3b) An agent, who collects rent from a tenant after the initial tenancy remit the same within seven working days, unless otherwise directed in writing by the landlord, and such funds collected shall be receipted.”
While the proposed law in Section 5(3) makes it unlawful for a landlord or his agent to demand or receive from a new or prospective tenant, rent in excess of one year in respect of any premises, the estate surveyors’ group canvassed an amendment to read: “It shall be unlawful for a landlord or his agent to demand or receive from a new or prospective tenant, rent exceeding one year in respect of any premises, except in instances where the prospective tenant is willing and able to provide advance rent.”
Commenting, Commissioner for Housing in Lagos State, Moruf Akinderu-Fatai, said that the new Tenancy Bill currently under consideration by the assembly would ensure full protection of both tenants and landlords, as well as reduce inhibitions to mass housing development for private investors.
He said: “As of today, there are issues surrounding the landlord and tenant relationship, this bill is intended to make sure that everybody knows his/her rights, the tenant is protected, the landlord is protected.”
Akinderu-Fatai, while appreciating the legislators for the holistic work of research and dedication put into crafting the bill, also stated that the bill will undoubtedly create confidence for real estate investors and open up opportunities for new real estate financiers in the state.
The commissioner, while contributing to the proceedings at the public hearing, applauded some of the highlights of the new bill, which will protect the tenants from exploitation by estate agents, such as a provision to make registration of agents mandatory and setting a limit for commission and agency fees.
He also reiterated the need for the new bill to ensure the provision of the existing law to “keep premises insured against loss or damage” by landlords is favourably reconsidered.
He commended the new provision that expressly states the right of the landlord to inspect and maintain the premises, upon giving prior notice to the tenants.
The public hearing on the new Lagos State Tenancy Bill 2025 was witnessed by the Speaker of the Assembly, who was represented by Honourable Kayode Ogundipe and Honourable Ege Olusegun Adebisi, the Chairman, House Committee on Housing.
