Lagos Assembly Moves to Slash Estate Agents’ Fees to 5% in New Tenancy Bill

The Lagos State House of Assembly is pushing forward a new Tenancy Bill aimed at shielding tenants from excessive charges by estate agents.

Speaking with the News Agency of Nigeria on Thursday, the Chairman of the House Committee on Information, Stephen Ogundipe, explained that the bill was crafted in direct response to growing public concerns over steep agency fees.

One of the key proposals is to cut agent commissions on annual rents from the current 10 per cent to five per cent, a move he said would ease the financial strain on accommodation seekers.

Ogundipe noted that beyond lowering costs, the legislation seeks to promote fair dealings between landlords and tenants, reduce disputes, and attract more private investment into the state’s real estate sector.

“If passed into law, this bill will resolve many recurring landlord-tenant conflicts, clearly spell out the rights and obligations of both parties, and support large-scale housing development,” he stated.

He commended stakeholders who participated in Wednesday’s public hearing, stressing that their input would help shape a balanced and progressive law. The lawmaker also called for a review of existing rules requiring landlords to insure their properties and highlighted provisions allowing landlords to inspect and maintain premises after giving prior notice.

The public hearing was attended by senior lawmakers, housing officials, and representatives from professional bodies such as the Nigerian Institution of Estate Surveyors and Valuers, the Nigerian Bar Association, the Real Estate Developers Association of Nigeria, and the Association of Realtors.