Mudashiru Obasa, speaker of the Lagos House of Assembly, says the proposed bill to regulate the relationship between landlords and tenants will reduce the agency fee or commission on annual rent from 10 to five percent if passed into law.
Obasa spoke on Wednesday during a one-day public hearing on
the bill.
Represented by Stephen Ogundipe, a lawmaker, Obasa said section
3(4) of the proposed tenancy law will make it an offence for any agent
collecting more than five percent of annual rent.
The speaker said such an agent commits an offence punishable
by refund, two years’ imprisonment, or a fine of N1 million.
Obasa added that Lagos’ housing deficit had risen by 15
percent, from 2.95 million units in 2016 to 3.4 million units in 2025.
He said over 70 percent of Lagos residents are tenants, with
many spending 40 to 60 percent of their income on rent.
The bill, he noted, will provide a framework for tenancy
agreements, rent payment, property maintenance, and the process for recovery of
premises.
Olusegun Ege, chairman of the committee on housing, said the
proposed legislation has four parts and 45 clauses and addresses rights,
obligations, tenancy agreements, rent payments, and dispute resolution
procedures.
Ege said the legislation outlines clear eviction procedures
to protect tenants from arbitrary evictions, which is important for stability,
especially for families and small businesses.
“A commission or agency fee in respect of any tenancy shall
be agreed upon by the Agent and the Landlord or Tenant who engaged the agent,
and the amount shall not exceed 5% of the amount paid as one year’s rent,”
section 3(4) of the draft of the proposed law reads.
However, professional bodies at the public hearing raised
concerns over the five percent agency fee limit, saying it conflicts with
established professional charges.
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