With rising rents pushing affordable housing out of reach for many Nigerians, many states are enacting tenancy laws to regulate rents, define landlord-tenant relationships, and curb abuses by property agents. Experts welcome the move to curb fraud and protect tenants, but caution against regulations that could discourage investment, urging governments to balance renters’ protection with landlords’ legitimate interests, VICTOR GBONEGUN reports.

As rising rents, arbitrary increases and disputes between landlords and tenants deepen Nigeria’s housing crisis, state governments are turning to tenancy laws to regulate rental transactions, protect occupants and curb unprofessional practices in the property market.

The measures seek to address longstanding complaints about excessive rent advances, arbitrary eviction, exploitative agency charges and the absence of clear agreements governing landlord-tenant relationships.

In major cities, rising accommodation costs are forcing low- and middle-income earners to relocate to distant suburbs or live in overcrowded conditions. Tenancy laws are increasingly seen as instruments for promoting transparency, defining the rights and obligations of both parties, and providing legal channels for resolving disputes.

However, weak enforcement, limited public awareness, lengthy dispute-resolution processes and unregistered estate agents continue to undermine efforts to sanitise the rental market. In major city centres, a self-contained apartment costs between N800,000 and N2 million, while a one-bedroom flat ranges from N2.5 million to N3 million and two- or three-bedroom apartments cost between N3 million and N5 million yearly, depending on location.

In some cases, landlords demand two to three years’ rent upfront or evict tenants without following due process. Agents also impose excessive agency, legal and caution fees, sometimes without receipts, while some pressure landlords to increase rents to boost their commissions.

Over the past two to three years, states including Abia, Ebonyi, Kogi, Lagos, Ogun, Anambra and Enugu have either passed tenancy laws or initiated legislation to regulate the rental market. Efforts to introduce rent-control measures in the Federal Capital Territory have yet to produce a law, despite a previous call by the House of Representatives for the administration to regulate the system.

The Guardian learnt that some states are considering provisions to cap agency fees at 10 per cent and limit advance rent payments to one year. Other proposals include legal fees capped at five per cent, prescribed notice periods and special rent tribunals to resolve disputes expeditiously.

Common provisions in the laws and bills include restrictions on advance rent payments, safeguards against arbitrary increases and prohibitions on forceful eviction. Some proposals also prescribe notice periods for terminating tenancies, criminalise harassment and the disconnection of utilities as a means of forcing tenants out, and require written rent receipts.

Other measures seek to cap agency and legal fees and require property practitioners to register with state regulatory authorities. The legislation also outlines landlords’ responsibilities for property maintenance and establishes procedures for recovering possession.

In Kogi State, the proposed Tenancy Law 2025 is expected to regulate rent increases, agency charges and tenancy arrangements while protecting landlords and tenants. The bill also seeks to regulate estate agents and introduce safeguards for parties to tenancy agreements.

In Ebonyi State, the House of Assembly recently passed the Bill Regulating House Rent, Agent Fees and Scrap Trade. The legislation caps agency fees for real estate transactions at two per cent of the gross transaction value for both professional and non-professional agents.

Similarly, the Abia State House of Assembly recently passed the Abia Property and Tenancy Bill, which seeks to regulate property transactions, protect landlords and tenants, and sanitise estate agency practice. It provides for the establishment of the Abia State Property and Tenancy Regulatory Authority, subject to the governor’s assent.

The bill requires property agents to register with the authority and caps agency fees at five per cent of the total rent payable. Unlicensed agents could face fines ranging from N1 million to N10 million, while agents found guilty of defrauding clients could face six to seven years’ imprisonment.

Some professionals have, however, raised concerns that certain proposed provisions could undermine the regulatory authority of the Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) by failing to exempt estate surveyors and valuers from their requirements.

The Chairman of the Faculty of Estate Agency and Marketing of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr Yemi Stephens, said state governments were responding to sharp rent increases, excessive tenant charges and unilateral hikes with little room for negotiation.

“What the states are doing is establishing clearer rules on rent increases, payment arrangements, notice periods and tenancy renewals. Inflation and rising rents have made decent accommodation increasingly unaffordable for the average citizen, leaving access largely to the wealthy.

“Government has a responsibility to ensure that basic needs, including housing, food and clothing, are accessible and affordable. The rapid increase in rents is the biggest driver of states enacting tenancy laws,” he said.

Beyond protecting tenants from arbitrary eviction, Stephens said the laws should regulate how landlords recover possession, including the notice periods and procedures required before legal proceedings can begin. He stressed, however, that governments must address the shortage of affordable housing to achieve lasting relief.

He warned that implementing rent regulations could prove difficult amid the nationwide housing deficit and the high cost of construction. Developers often rely on loans with double-digit interest rates and incur substantial expenses obtaining building plans and statutory approvals.

“Controlling rents in major city centres, especially in properties built by private developers, will be difficult. As long as housing supply remains inadequate, landlords will seek to recoup their investments, and rents will continue to rise.

“Although the law may not significantly discourage investment in rental housing, it could deter developers from undertaking large-scale residential projects,” Stephens said.

He urged the government to expand access to affordable, long-term mortgages and strengthen financing mechanisms to support homeownership and housing delivery.

“The advocacy for affordable mortgages should be intensified, and something better than the Ministry of Finance Incorporated (MOFI) and the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) should be developed. Housing development cannot be left entirely to private individuals, who expect returns on their investments.

“Government must demonstrate genuine commitment to intervention in the property market and ensure that tenancy laws are effectively implemented,” he said.

Stephens argued that greater public investment in housing could ease the crisis, adding that funds allocated to major infrastructure projects, such as the Lagos-Calabar coastal highway, could otherwise deliver substantial numbers of affordable homes across the states.

The immediate past Chairman of NIESV, Kogi State branch, Mr Apeh Philips, said the private sector’s dominance of housing supply made rent increases likely, even in old properties. He noted that landlords often raise rents simply because others in the area have done so, worsening tenants’ financial burdens. He expressed optimism that the new laws could restore order to the rental market.

Philips said the legislation should protect both landlords and tenants by providing remedies for maltreatment, rent defaults and other breaches of tenancy agreements.

“It is hoped that the law will address issues such as when a landlord is maltreating a tenant. And when a tenant is misbehaving with the landlord’s property by failing to pay rent as and when due or absconding without paying, the law should help minimise the problem. There should be a place where you can go and receive prompt judgment,” he said.

He disclosed that the Kogi State House of Assembly was working on a new tenancy law and consulting professionals, including the state branch of NIESV. The proposed legislation is expected to address rent demands, regulatory oversight and the establishment of a board or agency to oversee registration and compliance.

“Our members have been attending meetings at the House of Assembly to ensure that whatever should be included is put in place,” he added.

A Professor of Estate Management and Valuation, Olurotimi Kemiki, recalled that previous state governments had introduced rent-control edicts, but many failed because of poor implementation.

“Some of those laws still exist, but they became practically impossible to implement because these houses you are regulating, you’re not the owner of those commodities. If you are regulating the housing market and prices, or how landlords should treat tenants and how tenants relate with landlords, then you have to do the same to other commodities,” he said.

Kemiki said government intervention was necessary to curb fraud by unregulated roadside agents who exploit prospective tenants by collecting rent without securing accommodation or imposing excessive charges.

“Some of them will collect rent; they will never deliver the house. Some collect a fee from a prospective tenant. For instance, a one-bedroom flat rents for N1 million, but they can tell you the total package is N2.2 million. How do you explain paying N2.2 million for a house that costs N1 million when it is not a serviced apartment?” he asked.

The former NIESV national secretary said government should protect tenants from fraudulent agents while recognising that registered professional estate surveyors and valuers are already regulated by law.

He cautioned against regulations that could discourage property investment, arguing that restrictions on rents would have limited impact if housing shortages remained unresolved.

“If people stop building and the government is not building, supply drops naturally. When supply drops, the law of demand takes effect regardless of regulation. If the government sets a rent ceiling or restricts rent advances, such measures may not work when housing stock is inadequate and people are desperately looking for accommodation,” he said.

Kemiki urged governments to balance tenant protection with landlords’ legitimate interests, ensuring that renters are not exploited while property owners earn reasonable returns.

He noted that real estate investment requires substantial capital and time to recover costs, making it essential to sustain investor confidence.

“Whatever tenancy law is being proposed, the government should make the process open and allow all relevant stakeholders to deliberate and reach a common agreement that protects everyone without putting any party at a disadvantage,” he said.