The Lagos State Government has officially capped tenancy agreement and commission fees at a maximum of 10% of annual rent. The announcement, made during the 2025 Ministerial Press Briefing in Alausa, Ikeja, was delivered by Ms. Barakat Odunuga-Bakare, Special Adviser to Governor Babajide Sanwo-Olu on Housing.
The decision comes amid rising public outcry over the escalating cost of securing rental properties, with many tenants alleging exploitation by landlords and unregistered estate agents. Ms. Odunuga-Bakare expressed deep concern over the disturbing trend of excessive charges, describing it as a blatant violation of the Lagos State Tenancy Law and a major obstacle to achieving fair housing standards in the state.
“We are receiving an alarming number of reports about agents and landlords demanding outrageous fees for tenancy agreements and commissions,” she said. “These actions are exploitative, illegal, and completely unacceptable. The Lagos State Government is committed to ending these practices and ensuring that all residents have access to affordable and transparent rental processes.”
While acknowledging the pressure on Lagos’ housing market due to population growth and rural-urban migration, she warned that the crisis has been weaponized by opportunists who impose unjust charges on desperate renters. Many of these individuals, she said, operate as unlicensed agents outside professional regulatory frameworks, making it harder for authorities to monitor and penalize violators.
Read also:
- Lagos State Government bans night construction
- Lagos State government considers appropriate levy on SSBs to boost public health
- Lagos State Government Unveils Digitized Classrooms in Lagos
To tackle the issue head-on, the government is strengthening partnerships with registered real estate bodies and has called on Lagos residents to report any illegal fee demands. According to Ms. Odunuga-Bakare, public vigilance is crucial to enforcement. “We can’t be everywhere, but your reports will help us identify and sanction violators who are preying on vulnerable residents,” she emphasized.
As part of the broader housing reform strategy, the Lagos State Real Estate Regulatory Authority (LASRERA) has been positioned to receive complaints from the public via its social media handles—@lasrera1 on Instagram and Facebook, and @lasrera on X (formerly Twitter).
This latest intervention by the Sanwo-Olu administration reinforces its commitment to tenant rights and housing affordability in one of Africa’s fastest-growing megacities. As Lagos pushes forward with its urban development agenda, the clampdown on exploitative housing practices is expected to usher in a new era of accountability, transparency, and equity in the state’s real estate sector.
