FReal estate remains one of the most dynamic sectors in Nigeria, serving as a driver of economic growth and a critical platform for meeting the housing needs of millions. The rapid pace of urbanisation, rural-urban migration, and population growth has increased the demand for housing in most Nigeria’s commercial cities, which has, in turn, spurred private efforts in real estate development.
The growth of property development and increased search for opportunities in these centres have created a transaction platform between property owners and termly property users. Interestingly, along with the growth of real estate development in urban centres and investment opportunities for property owners has come challenges in the management of landlord and tenant relationships, especially in the areas of affordability, fairness, and security of tenure.
In addressing these issues, Lagos State Government enacted the Lagos State Tenancy Law of 2011 with a revised version recently publicly reviewed with a view to passing into law in 2025. The Lagos State Tenancy Law is a legal framework designed to balance the interests of landlords and tenants while fostering an environment that supports real estate investment.
The Lagos Tenancy Law was a landmark reform, reflecting government’s intent to introduce order, equity, and fairness into the housing market. By regulating tenancy agreements, rent advance payments, eviction processes, and dispute resolution mechanisms, the law aims to protect tenants from exploitation while equally safeguarding the legitimate rights of property owners.
For instance, one of its most significant provisions is the restriction on landlords demanding more than one year’s rent in advance for yearly tenants and six months for monthly tenants. This provision was particularly important in a city where tenants often struggle under the burden of two to three years’ rent demand ahead of occupation.
The Lagos State Tenancy Law has been adjudged in various quarters as government’s subtle way of covering their inadequacy in housing provision by overly protecting the interests of tenants against landlords. Supporters of the law has different opinions. A school of thought believe that the law is a tool of fairness that protects both landlords and tenants in Lagos State. It is believed also that the law introduced some mechanisms into the real estate market to ensure transparency and fairness.
Specifically, the law provides tenants with the right to peaceful enjoyment of premises, protects against arbitrary rent increases, and outlines due legal process before eviction. For developers and landlords, it gives legitimacy to their investments by providing clear rules of engagement, thereby reducing the incidence of informal practices that could hinder the real estate sector’s credibility. The Lagos Tenancy Law, therefore, serves as a bridge between housing demand and real estate development by fostering trust, reducing disputes, and enhancing investor confidence.
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However, implementation challenges remain a major concern. Many landlords and tenants are still unaware of the provisions of the law, while enforcement institutions such as rent tribunals and magistrate courts are often overstretched. In some cases, powerful landlords circumvent the law, and tenants, fearing eviction, may lack the willpower or resources to seek redress.
Additionally, real estate developers argue that restrictions on rent collection may affect their cash flow and investment plans, especially in a high-cost-implicit environment like Lagos and Abuja. This highlights the need for continuous sensitisation, proper enforcement, and review of the law to align with current realities.
Ultimately, the Lagos Tenancy Law underscores the state’s recognition of housing as a basic human need and its commitment to consumer protection in real estate. For Lagos to achieve a sustainable housing market, there must be synergy between legal frameworks, real estate investment, and consumer rights.
A stronger institutional framework for enforcement, coupled with public awareness campaigns, will deepen the impact of the law. At the same time, government must work with professional bodies such as the Nigerian Institution of Estate Surveyors and Valuers to ensure fairness in tenancy administration. Although, the Lagos Tenancy Law is an instrument of regulation, it has often been criticised over its effectiveness in enforcement.
Often times, after a court’s verdict has been given in favour of a property owner, it takes tens of months or sometimes a year or more to recover vacant possession; whereas loss of revenue on a property is capable of frustrating mortgage on the property under consideration. In the end, the property owners may lose their properties due to their inability to perform mortgage obligations. The Tenancy Law needs to be revamped to reflect its neutrality.
As Lagos continues to expand as Nigeria’s economic hub, striking the right balance between real estate development and consumer protection will be key. The Tenancy Law provides a foundation, but its success will depend on how effectively stakeholders embrace and enforce its provisions. For tenants, it offers hope of security and dignity; for landlords and developers, it builds confidence in a regulated market. For society, it represents a step toward housing justice and inclusive urban development.
Ayinla is a professional Estate Surveyor and Valuer, and Assistant Director, Lagos State Lands Bureau. He wrote from Lagos.