The Lagos State House of Assembly has hosted a public hearing on a new bill, titled ‘A bill for a law to regulate the relationship between landlords and tenants, including the procedure for the recovery of premises in Lagos State and for other connected matters’, aimed at addressing the state housing crisis.

The bill aims to establish a more comprehensive legal framework for the relationship between landlords and tenants.

In his address at the one-day public hearing, the Chairman of the Committee on Housing, Ege Olusegun Olabisi, recounted that despite a 15 per cent increase in housing units since 2016, a recent report reveals that over 70 per cent of Lagos residents are renters, with many spending between 40 per cent and 60 per cent of their monthly income on rent.

“This financial strain is compounded by rising costs and a lack of clear regulations, leading to frustration among residents. The proposed law, which was committed to the House Committee on Housing on July 10, 2025, aims to tackle these issues directly,” he said.

He noted that the bill is structured into four parts with 45 clauses, designed to establish clear guidelines for tenancy agreements, rent payments, and dispute resolution.

“The bill will Clarify Rights and Obligations, prevent Arbitrary Evictions, promote mediation and expedite legal processes,” he said.

Olabisi emphasised the importance of stakeholder input, stating that public hearings are a necessary part of the legislative process to create legislation that “can stand the test of time.” He also assured attendees that their contributions would be taken into consideration in the final passage of the bill.

Commissioner for Housing in Lagos State, Moruf Akinderu-Fatai, expressed sincere appreciation for the timely and diligent work on the new housing bill. “This legislation is of paramount importance to Lagos State, and as stakeholders in this sector, we have faced numerous challenges.

“Beyond the fundamental issues of supply and demand, we have struggled with a lack of clear regulations, particularly concerning low-income housing. This has made it difficult to effectively manage and regulate this critical segment of the market.

He noted that the bill offers a crucial opportunity to build confidence within the sector. “It will provide a clear and predictable framework for investors, ensuring they can recoup their investments. Additionally, it will establish clear guidelines for tenants, simplifying the rental process for all parties involved.”

He identified taxation, insurance and professional conduct as key areas for consideration:

“We recommend a review of the tax obligations on rental income to prevent double taxation, especially given the existing land bill charges on properties.

“We believe it is essential to align the proposed bill with the current insurance laws signed by Mr. President, particularly as they relate to the real estate sector.

“During our stakeholders’ meeting, issues were raised regarding the professional conduct of lawyers and estate valuers. Specifically, concerns were highlighted about lawyers performing roles that are traditionally outside their professional purview, leading to potential conflicts of interest.”

The Lagos State Attorney General and Commissioner for Justice, Mr. Lawal Pedro, made a plea for the swift passage of the bill, highlighting its potential to reform the state’s real estate market.

He used a real-life case of a tenant with five years of unpaid rent totalling ₦78 million to illustrate the current system’s failings.

He argued that the current court system is too slow, threatening the long-term commercial viability of real estate investment in Lagos State.

“The new bill aims to prevent the courts from being used as a tool of oppression and to ensure that justice is not delayed.

“The key provisions championed by the Attorney General include Stricter Rules for Lawsuits, conditions for Appeals and standardised agency Fees.

“Tenants will be required to show they have paid all outstanding rent, service charges, and utility bills before they can sue their landlord,” he said.

Pedro expressed confidence that, with these new measures, most tenancy cases could be resolved within three to six months.

He also addressed concerns about professional conduct, clarifying the difference between registered estate valuers and unregistered individuals.

He urged professionals to lend their expertise to the legislative process, emphasising that the bill’s goal is to create a comprehensive law that works for everyone.