The Lagos State Government has firmly reiterated its stance against the widespread practice of landlords and real estate agents demanding excessive tenancy agreement fees, emphasizing that such charges must not exceed 10% of the annual rent. This renewed warning aims to curb growing exploitation in the housing sector, where tenants already grapple with soaring rent prices and under-regulated fees.

At the 2025 Ministerial Press Briefing held at the Bagauda Kaltho Press Centre in Alausa, the Special Adviser to the Governor on Housing, Barrister Barakat Odunuga-Bakare, made a clear and direct statement. She reaffirmed that any demand above the legally mandated 10% fee constitutes a breach of the Lagos State Tenancy Law and will not be tolerated by the government.

“The Lagos State Government has reiterated its stance against the imposition of excessive tenancy agreement fees,” Odunuga-Bakare declared. “Any landlord or agent found demanding or collecting more than 10 percent of the annual rent as agreement or legal fees is in direct violation of the state’s tenancy regulations.”

Widespread Violations Trigger Government Action

The adviser disclosed that the state has been inundated with reports from frustrated tenants who face unjustified charges from landlords and agents. In many of these cases, landlords and unlicensed agents are demanding commissions and legal fees far beyond the lawful threshold, compounding the financial strain on residents.

According to Odunuga-Bakare, the state government cannot be physically present in all communities to monitor every transaction. Therefore, she urged Lagosians not to remain passive but to actively report any such violations.

“We need residents to speak up. The government is committed to sanitizing the housing market, but we rely on the cooperation of the public to identify and report illegal practices,” she stated.

She also acknowledged that Lagos’ booming population and constant influx of migrants have provided opportunities for exploitation in the real estate market. However, she assured residents that the government remains committed to eliminating sharp practices and protecting renters from unlawful charges.

Targeting Unlicensed Operators

As part of the state’s strategy to bring order to the housing market, Odunuga-Bakare revealed that the government is working closely with accredited associations of real estate agents. She explained that many violators fall outside the scope of these associations and operate without proper licenses or regulatory oversight.

The Special Adviser noted that the Lagos State Real Estate Regulatory Authority (LASRERA) serves as the appropriate platform for filing complaints about excessive tenancy fees. Residents were encouraged to document and report any case where a landlord or agent demands more than the permitted 10%.

“LASRERA is fully empowered to take enforcement actions. We want to ensure every player in the market abides by the rules,” she added.

Housing Woes Deepen in Lagos

The crackdown on illegal tenancy fees comes at a time when residents are already struggling under immense pressure from escalating housing costs. Data from early 2025 paints a troubling picture of the real estate environment in Lagos.

In January, a report revealed that the cost of short-let apartments in Lagos soared by more than 200% over the past year. This spike followed a 12.95% increase in rental prices in 2023, coupled with an earlier jump of 46.4% in the same year. These staggering rises have made housing increasingly unaffordable for both new renters and long-term residents alike.

Moreover, in many neighborhoods, monthly rent prices have doubled within a span of just two years, further squeezing household budgets and displacing low- to middle-income families.

This affordability crisis, combined with exploitative charges like excessive agreement fees and commissions, has prompted the Lagos State Government to act with renewed urgency. Officials say enforcing the 10% cap is a key part of broader reforms aimed at reining in housing costs and promoting transparency across the sector.

Government’s Long-Term Housing Goals

Beyond regulating tenancy fees, the Lagos State Government continues to roll out policies designed to expand access to decent and affordable housing. Governor Babajide Sanwo-Olu’s administration has launched multiple low-cost housing projects across the state, although critics argue that the current pace is not sufficient to meet the exploding demand.

Barakat Odunuga-Bakare emphasized that while housing challenges persist, the government remains focused on balancing supply and affordability. She reiterated that stricter oversight of real estate transactions would help create a more transparent and equitable housing system.

By confronting both the supply issue and the conduct of market actors, Lagos aims to prevent the housing sector from becoming an arena of unchecked profiteering. The Special Adviser concluded that residents must remain vigilant and take full advantage of the complaint mechanisms available through LASRERA.

What Residents Should Know

• Maximum Tenancy Agreement Fee: The law allows only up to 10% of annual rent to be charged for tenancy agreements or legal fees.

• Where to Report Violations: The Lagos State Real Estate Regulatory Authority (LASRERA) is the official channel for reporting unlawful charges.

• Who Is Most Likely to Violate the Law: Many offenders are unlicensed real estate agents or unscrupulous landlords operating outside of recognized professional associations.

• Why Enforcement Matters: Excessive fees place additional burdens on tenants already struggling with rapidly rising rental prices across Lagos.

A Call for Collective Responsibility

The Lagos State Government’s reaffirmation of tenancy law enforcement serves not just as a warning to landlords and agents but also as a call to action for residents. Combating exploitative rental practices requires a collective effort—both from regulators and the people they serve.

As housing challenges in the state continue to intensify, measures like this are essential for restoring balance and ensuring that all Lagosians can access fair and dignified living arrangements. With consistent enforcement, transparency, and cooperation between the public and authorities, the dream of an affordable housing landscape in Lagos may yet become a reality.