Introduction
The Lagos State Tenancy and Recovery of Premises Bill 2025 is set to introduce significant changes to tenancy laws and procedures in Lagos State. The bill has passed it’s second reading. It is currently under review.
The relationship between landlords and tenants is an important aspect of property law in Lagos State. This is particularly the case given the high demand for residential and commercial accommodation across the State. Over the years, disputes arising from rent increases, payment of advance rent, tenancy agreements, eviction, recovery of premises, service charges, and the conduct of estate agents have become common. Because of these issues, challenges have highlighted the need for a clear and effective legal framework to protect the rights and interests of both landlords and tenants. As a result, legislative efforts such as the Lagos State Tenancy and Recovery of Premises Bill 2025 have become increasingly relevant.
This article examines the key provisions of the Bill, taking into account its aims and objectives. The article also aims to highlight key reforms in the Bill.
Lagos State Tenancy and Recovery of Premises Bill 2025
The Lagos State Tenancy and Recovery of Premises Bill 2025 is a proposed bill. It applies to businesses and residential premises and not commercial premises. The bill came into being after much criticism and dispute had arisen from the existing law, which is the Tenancy Law 2011. Increment of rent, wrongful eviction, unchecked administration of estate agents, vague tenancy agreements, and wrongful recovery of premises were the challenges associated with the existing law. In response to these challenges, the Lagos State Tenancy and Recovery of Premises Bill 2025 was introduced to address and streamline the tenancy process.
AIMS AND OBJECTIVES OF THE BILL
The Bill seeks to establish a more comprehensive and modern framework for regulating the relationship between landlords and tenants, as well as the recovery of premises. It also seeks to examine the administration of real estate agents in Lagos State. Furthermore, it aims to promote fairness, transparency, and accountability in tenancy transactions. It also provides clearer procedures for resolving disputes and recovering possession of premises. To clarify, the Lagos State Tenancy and Recovery of Premises Bill 2025 explicitly aims for transparency and fairness.
One of the significant features of the proposed Bill is its wider application to premises across Lagos State. It also provides stronger protections against unlawful eviction and harassment. In addition, it proposes regulations relating to advance rent, rent increases, agency fees, service charges, security deposits and the procedures to be followed before possession can be recovered. Importantly, these reforms are at the heart of the Lagos State Tenancy and Recovery of Premises Bill 2025.
KEY REFORMS IN THE BILL
- The bill incorporates strict regulatory measures to checkmate the administration of estate agents on property, such as every estate agent must register with LASRERA, issuance of receipts and remit payment must be made within seven (7) working days, and commission on annual rents has been capped from 10% to 5%. These new measures are articulated in the Bill.
- Â The scope of the bill extends to all areas in Lagos State, including Apapa, Ikeja GRA, Ikoyi and Victoria Island, thereby creating uniformity in the administration process. The Lagos State Tenancy and Recovery of Premises Bill 2025 ensures regulatory consistency across these regions.
- Â Mandatory Issuance of Rent Receipts. This requirement was specifically highlighted as a key point in the Lagos State Tenancy and Recovery of Premises Bill 2025 to promote documentation and transparency.
-  Restriction on Demand for Advance Rent. This is one of the most salient provisions in the bill. This provision creates a strict regulation in rent demand as landlords are prohibited from demanding more than three months’ rent from sitting monthly tenants or more than one year’s rent from sitting yearly tenants and new (or would-be) tenants. Equally, tenants are not allowed to offer rent beyond these limits. Breach of this provision will result in payment of fines or imprisonment for up to three (3) months. It is important to note that these obligations and penalties are stipulated in the Bill.
- Â The Bill has set out clearer rules on service charges and security deposits, especially for landlords of shopping malls, commercial buildings, and mixed-use properties with several tenants. Under the proposed law, landlords must provide tenants with a written statement showing how service charges were spent every six months. This is intended to promote transparency and reduce disputes about the management of shared facilities and services. The Bill also requires landlords to return security deposits when a tenancy ends, except where deductions are needed for proven repairs or unpaid obligations. This aims to address complaints about landlords delaying or refusing to refund deposits. However, landlords will be required to keep proper records and provide evidence to support any deductions made from the security deposit, as provided in the Bill.
- Â The Bill also introduced a new procedure for recovering premises in terms of rent default. Under these provisions, a landlord must give the tenant a seven-day notice to recover possession after the required period of rent arrears has passed. This notice period is generally shorter than the period required to evict a tenant who has paid their rent up to date. The Lagos State Tenancy and Recovery of Premises Bill 2025 reflects this procedural update.
-  The issue of eviction has also been addressed under the proposed law. In this regard, the Bill keeps the existing notice periods based on the type of tenancy. A tenant who pays rent monthly must be given one month’s notice, while a tenant who pays rent yearly must be given six months’ notice. However, no notice is required where a fixed-term tenancy has already expired. This is in line with the current law and the updates contained within the Lagos State Tenancy and Recovery of Premises Bill 2025.
- Â The Bill sets out the procedure for court cases involving the recovery of possession of a property. Where a person wants to recover possession of a property, whether or not there is unpaid rent, the case may be started by an Originating Summons. If the defendant wants to oppose the case, they must file a Counter Affidavit and Written Address within 14 days after receiving the summons. The case will then be scheduled for hearing within 14 days after the period for filing and serving a reply has ended. All these procedural steps are guided by the Lagos State Tenancy and Recovery of Premises Bill 2025.
- Â The Bill also provides that a tenant who wants to bring a case against a landlord concerning the tenancy or property must first give the landlord 30 days’ written notice of their intention to commence the case. The tenant must also provide evidence that their rent is fully paid and agree to continue paying rent, utility bills, and any applicable service charges until the case is finally decided. The proposed procedure is expected to make the recovery of possession more organised and efficient, allowing landlords to recover their properties more quickly, as anticipated by the Bill.
Conclusion
The Lagos State Tenancy and Recovery of Premises Bill 2025 represents an important step towards improving the relationship between landlords and tenants in Lagos State. By strengthening the protection of tenants’ rights and promoting greater accountability among landlords, the Bill seeks to create a fairer and more balanced tenancy system. Therefore, if properly implemented, it could reduce disputes between landlords and tenants. It could also contribute to a more stable and well-regulated property market in Lagos State. Ultimately, the Lagos State Tenancy and Recovery of Premises Bill 2025 is a critical legislative development for the state’s real estate sector.
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