Tenants in Lagos are paying nearly double their rent as agency and legal fees continue to exceed the limits set by the Lagos State Tenancy Law, despite repeated government warnings.
The law, enacted in 2011, caps both agency and legal fees at 10% of the annual rent. However, violations remain widespread, particularly in areas dominated by informal agents operating outside professional oversight.
In 2025, the Lagos State Real Estate Regulatory Authority (LASRERA) restated that any charge above the 10% threshold is illegal, warning agents and landlords to comply. Yet, many renters continue to bear inflated costs.
For example, Stainless Precious, a tenant in Ikorodu, paid ₦400,000 for a one-bedroom apartment and another ₦400,000 in additional charges, including ₦150,000 each for agency and legal fees. Similarly, Daniel Iwuoha in Maya, Ikorodu, paid ₦240,000 total for an apartment with a base rent of ₦150,000. Both dealt with unregistered agents.
While informal agents dominate most parts of the city, high-end neighborhoods like Victoria Island and Lekki show better compliance. Licensed estate firms there typically adhere to the 10% ceiling, backed by professional standards and regulatory oversight.
Bukola Ekunola, an accredited estate valuer, said his firm strictly applies the 10% cap as required by law. “Transactions in premium areas are more structured because professionals are involved,” he explained.
Experts blame the persistent breaches on weak enforcement, limited housing supply, and the prevalence of unregistered agents. Real estate analyst Olabisi Odusanya said, “Fee caps won’t work unless housing supply improves and agency operations are properly formalized.”
The Lagos State Government, through LASRERA, has made agent registration mandatory since June 2025 to curb fraud and promote accountability. The agency continues to work with professional bodies like the Nigerian Institution of Estate Surveyors and Valuers (NIESV) to ensure compliance though enforcement remains a challenge in the city’s vast informal property market.
By: Caleb Obiowo
