Overview of Lagos Tenancy Law

1. Lagos State Tenancy Law 2011 (Cap. T1, No. 14 of 2011)

Enacted: 24 August 2011; applies broadly but excludes Apapa, Ikeja GRA, Ikoyi, and Victoria Island, plus certain institutional or care-facility-owned residences LawGlobal HubSabiLaw.

Key Sections and Provisions:

• Section 4 – Advance Rent: It's unlawful for a landlord to demand rent in excess of prescribed durations—for example, more than six months for monthly tenants or over one year for yearly tenants. Both landlord and tenant could face N₦100,000 fine or 3 months imprisonment The Nation Newspaper.

• Section 5 – Rent Receipts: Landlords must issue receipts for rent payments, including date, names, amount, property details. Offenders risk fines up to N₦100,000 The Nation Newspaper.

• Section 6 – Tenant Rights: Includes:

  • Right to reasonable privacy and exclusive possession,

  • Freedom from harassment,

  • Compensation for improvements made by tenants—with written consent from the landlord The Nation Newspaper.

• Section 13 & 16 – Notice Periods (when not written in agreement):

  • Monthly tenant: 1 month

  • Quarterly/half-yearly: 3 months

  • Yearly: 6 months
    After a valid quit notice, a further 7-day notice is required before any legal action The Nation Newspaper.

• Section 37 – Unreasonable Rent Increase: Tenants can challenge arbitrary rent hikes Vanguard News.

In essence, the 2011 law sets foundational rights and procedures for tenancy—though with geographic and property-type exemptions.

2. 2025 Updates & Proposed Reforms

a) Lagos State Tenancy Law (2025) – Reform Effective May 2025

Recent news indicates Lagos State announced significant reforms in 2025 to tackle longstanding landlord-tenant imbalances.

Major Changes Include:

• Advance Rent Limit: Max 3 months advance rent from existing tenants; both landlord and tenant prohibited from exceeding this. Penalties: up to N₦100,000 fine or 3 months’ jail ArbiterzVice Reports.

• Mandatory Rent Receipts: Must include names, payment date, amount, location, lease duration. Non-compliance: N₦10,000 fine ArbiterzVice Reports.

• Cap on Agreement/Legal Fees: Cannot exceed 10% of annual rent ArbiterzVice Reports.

• Notice Periods (no written agreement):

  • Weekly: 1 week

  • Monthly: 1 month

  • Quarterly/half-yearly: 3 months

  • Yearly: 6 months
    Monthly tenants 3 months in arrears may face court repossession ArbiterzVice Reports.

• Tenants’ Rights Emphasized: Privacy, exclusive possession, shared space use, compensation for improvements ArbiterzVice Reports.

• No Self-Help Evictions: Illegal; evictions must go through proper legal process ArbiterzVice Reports.

• Dispute Resolution: Disputes can be taken to Magistrates’ Courts or High Courts ArbiterzVice Reports.

• Enforcement: Overseen by LASRERA (Lagos State Real Estate Regulatory Authority) ArbiterzVice Reports.

b) Lagos State Tenancy Bill 2025 (Pending in Assembly)

A more expansive bill is currently before the State House of Assembly and has passed second reading TheCableThe Guardian Nigeria. Highlights include:

• Statewide Application (no geographic exemptions) Mondaq.

• Strict Regulation of Estate Agents:

  • Agents must be registered under LASRERA Law 2021,

  • Limit commission to 5% of rent,

  • Agents must remit collected rent to landlord within 7 days,

  • Sanctions include prison or ₦1 million fine or repayment Mondaq.

• Rent Limit Rules:

  • Existing tenants: max 3 months (monthly tenancy) or 1 year (yearly tenancy),

  • Prospective tenants: max 1 year advance payment.

  • Penalties: N₦1 million fine or 3 months jail or both The Guardian Nigeria.

• Notice Periods & Termination Rules:

  • Weekly: 1 week

  • Monthly: 1 month

  • Quarterly/half-yearly: 3 months

  • Yearly: 6 months

  • Arrears thresholds trigger shorter notices for repossession

  • Fixed-term tenancies no notice required at expiry, but holdover requires 7-day notice before legal steps The Guardian Nigeria.

• Landlord Duties Expanded:

  • No interference with utilities, tenant access, or quiet enjoyment

  • Responsible for property repairs and payment of service rates

  • Receipts mandatory The Guardian Nigeria.

• Service of Notices: Personal delivery, adult resident, conspicuous posting, or courier, provided tenant is aware The Guardian Nigeria.

• Modernization of Dispute Process:

  • Virtual hearings introduced

  • Alternative Dispute Resolution (ADR) mechanisms allowed and court-enforceable Vanguard NewsThe Guardian Nigeria.

• Landlord Inspection Rights: With adequate notice Vanguard News.

3. Summary Comparison Table