Lagos, Nigeria’s commercial capital and most populous city, continues to wrestle with a rental housing system that many residents describe as costly, confusing, and risky. Despite repeated assurances of reform, tenants say little has changed on the ground.

In 2025, the Lagos State government introduced a new Tenancy Bill aimed at curbing excessive rent demands and regulating estate agents. Yet by early 2026, the legislation has not been fully implemented. As a result, renters remain exposed to rising housing costs, informal practices, and weak consumer protection in a market where demand consistently outpaces supply.

According to data from the National Bureau of Statistics, Lagos accounts for more than 10 percent of Nigeria’s urban population, intensifying competition for housing and amplifying the impact of weak regulation.

How Agents Continue to Shape the Rental Market

Estate agents play a central role in Lagos’ rental ecosystem, but their influence is largely unchecked. Tenants across the city report a pattern of abuse that has become familiar over the years.

Common complaints include fake property listings used to collect inspection fees, commissions that exceed one year of rent, and additional charges such as agreement and caution fees that are not clearly explained upfront. In more severe cases, renters say deposits are collected for properties that later turn out to be unavailable or nonexistent.

According to records from Lagos Magistrates’ Courts and consumer protection petitions reviewed by housing advocacy groups, dozens of rental-related fraud cases are filed annually, with losses often running into hundreds of thousands of naira per victim.

Housing rights advocates argue that the absence of compulsory licensing and enforcement has allowed unethical agents to operate freely, eroding trust in the market.

What the Lagos Tenancy Bill of 2025 Promised

The Lagos Tenancy Bill of 2025 was introduced as a response to years of tenant complaints and rising housing costs. Lawmakers said the goal was to modernize rental practices and reduce disputes between landlords, agents, and tenants.

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Among its key provisions were limits on advance rent payments, particularly the practice of demanding two or more years upfront. The bill also proposed formal registration and authorization of estate agents, as well as clearer penalties for fraudulent behavior.

Additional measures included stronger protection against sudden rent increases, safeguards against forced evictions, and faster resolution of disputes through specialized tribunals or streamlined court procedures.

According to policy analysts who reviewed the draft bill, similar reforms in other large African cities have helped stabilize rental markets when properly enforced.

Despite its ambitions, the tenancy reform has yet to move from policy to practice. Housing experts say the delay has weakened public confidence and allowed existing problems to persist.

Tenants continue to face unpredictable rent hikes, while landlords and agents largely operate under informal arrangements. Urban development analysts note that uncertainty in the housing market can have broader consequences, particularly for professionals relocating to Lagos for work.

According to a 2024 report by a Lagos-based real estate consultancy, housing uncertainty is among the top concerns cited by expatriates and returning Nigerians considering relocation to the city.

The Cost to Tenants and the Wider Economy

For renters, the financial strain is immediate. Teachers, civil servants, and small business owners often rely on incremental savings to secure housing. When rents rise sharply or upfront payments increase, many are forced to relocate to the city’s outskirts or delay moving altogether.

Construction and real estate analysts warn that prolonged rental instability can also slow investment in new housing projects, particularly in the mid-income segment. This creates a cycle where limited supply continues to drive high demand and rising prices.

The Lagos Bureau of Statistics estimates that housing-related expenses consume more than 40 percent of average household income in some parts of the city.

How Renters Are Protecting Themselves

Until reforms are enforced, tenant advocates say renters must rely on caution and documentation. Recommended steps include verifying agent credentials, requesting written authorization from property owners, and refusing verbal agreements.

Using established property platforms or trusted referrals can reduce exposure to fake listings. Renters are also advised to budget for additional costs such as service charges and utilities, which are often excluded from advertised rent figures.

Consumer protection groups emphasize that keeping written records remains one of the most effective safeguards available to tenants under current conditions.

What Stakeholders Say Needs to Change

Government officials have acknowledged the need to accelerate reform, but housing groups say progress has been slow. Advocates are calling for clear timelines, public awareness campaigns, and enforcement mechanisms with real penalties.

Professional estate agents argue that regulation could help clean up the industry by separating trained practitioners from opportunistic middlemen. Landlords, however, caution that strict rent caps could discourage new housing investment if not carefully structured.

Civil society organizations say sustained education campaigns are needed to help tenants understand their rights and avoid common pitfalls.

Voices from the Ground

For many renters, the issue is personal. A tenant in Surulere recounts paying two years’ rent upfront, only to be evicted after six months following a dispute with a landlord. The experience, he says, wiped out years of savings.

Tenant association representatives in Yaba and Ajah say frustration is widespread, though some remain cautiously hopeful that reforms will eventually take hold. Landlords interviewed by local media have expressed concern about balancing tenant protection with rising maintenance and property costs.

The Lagos Tenancy Bill of 2025 was presented as a turning point for Nigeria’s rental housing market. A year later, tenants are still waiting for tangible change. Until enforcement begins, renters must navigate a system shaped by informal practices and uneven power dynamics.

For Lagos to sustain its status as a global city and economic hub, housing regulation must move beyond promises. Credible enforcement, transparent rules, and stakeholder cooperation are essential if the rental market is to serve both residents and investors fairly.