In a decisive move aimed at protecting tenants and stabilizing the property market, the Lagos State Government has condemned what it describes as “exploitative” rent hikes imposed by some landlords and real estate agents. These increases, often triggered by nearby infrastructural developments or unjustified reasons, are now under regulatory scrutiny.

This action signals a firm stance by the government to restore fairness and transparency in the real estate market, especially in Nigeria’s most economically vibrant state—Lagos. It also comes at a time when local and international interest in real estate investments in Lagos, Abuja, Port Harcourt, Enugu, and Ibadan continues to grow.

Lagos Will No Longer Tolerate Exploitation of Tenants

Speaking during a live interview on TVC’s “Your View,” Barr. Barakat Odunuga-Bakare, the Special Adviser to the Governor on Housing, made it clear that the state will no longer tolerate the arbitrary actions of property owners and their agents.

“These rent hikes are unjustified and exploitative. We are working to ensure tenants are not taken advantage of simply because an area is seeing development,” she said.

The government’s intervention comes in response to growing concerns from Lagos residents who are increasingly priced out of their homes due to unjustified increments in rent.

Tenancy Law Under Review to Reflect Current Realities

Odunuga-Bakare revealed that the existing Lagos State Tenancy Law is currently undergoing a major review. The revised version will include provisions to regulate ambiguous charges such as “caution fees”, which have long existed in a grey legal area.

“We’re reviewing the tenancy law to address loopholes, including unregulated caution fees and arbitrary conditions imposed by landlords,” she noted.

The overhaul of rental laws could significantly affect real estate investments in Nigeria, particularly for those eyeing residential or rental property portfolios in fast-growing cities like Uyo, Owerri, and Asaba.

LASRERA to Play Key Enforcement Role

The Lagos State Real Estate Regulatory Authority (LASRERA) is at the heart of enforcement. Tenants are being urged to report any violations either in person or online, with assurances of prompt response.

Residents are also advised to verify the registration status of real estate agents and developers with LASRERA before signing any rental or property purchase agreements.

This move not only promotes due diligence among tenants but also boosts investor confidence in the Lagos property market—an essential factor for anyone considering real estate investments in the UK, USA, Canada, or seeking diversification through the Dubai or Nigerian markets.

Separating Legal Roles from Daily Transactions

Odunuga-Bakare stressed the need to clarify the limited role of legal practitioners in everyday real estate transactions. While lawyers are key in drafting agreements and managing disputes, most rental and property management issues fall under the purview of registered agents and brokers.

She emphasized the importance of professional standards and urged all real estate practitioners to register with LASRERA to ensure legal compliance and protect consumers from bad actors.

Collaborating with Stakeholders for Affordable Housing

Governor Babajide Sanwo-Olu’s administration is actively engaging with landlords, property associations, and developers to ensure a more stable and affordable housing ecosystem in Lagos.

This strategy is critical for cities experiencing rapid urbanization, especially as investor interest grows in real estate investments in Nigeria—not only in Lagos but in emerging hubs like Ibadan, Enugu, and Asaba.

The government also reaffirmed its commitment to equitable distribution of state-owned housing units, with a process designed to be transparent and inclusive.

Key Takeaways

• Lagos State Government is taking action against arbitrary rent hikes by landlords and agents, labelling them exploitative and unacceptable.

• The tenancy law is under review, with plans to regulate caution fees and close legal loopholes.

• Tenants are urged to report abuses directly to LASRERA, which will be central to enforcing new real estate regulations.

• The government is working with stakeholders to control rental inflation and promote fair housing practices.

• Real estate practitioners are required to register with LASRERA to remain compliant and trustworthy.

• This crackdown is part of a broader strategy to attract both local and international real estate investments, especially in regions like Lagos, Abuja, Port Harcourt, Uyo, and beyond.