Lagos State: Enforcing One-Year Rent Rule to Curb Upfront Demands

• Lagos State plans to enforce the one-year advance rent payment provision to prevent landlords from demanding multiple years' rent.
• Deputy Governor Obafemi Hamzat confirmed this enforcement drive, citing the Lagos State Real Estate Registration Agency law passed in 2025.
• The law also requires real estate agents to register with the state and encourages residents to report issues via an online platform.
• This enforcement is supported by Section 4 of the Lagos State Tenancy Law 2011, which already restricts advance rent to one year for new tenants.
• The government is also working on broader housing affordability initiatives, including completing projects and automating land document processes.

Lawyers should advise their clients to strictly adhere to the stipulated advance rent limits, as the state government has clearly indicated its readiness for active enforcement.

The Lagos State government has signaled its firm intention to actively enforce the one-year advance rent payment provision, aiming to curb the prevalent practice of landlords demanding two or three years' rent upfront. Deputy Governor Obafemi Hamzat, who is also the All Progressives Congress Party's governorship candidate, recently articulated this commitment, emphasizing that ensuring compliance with this regulation is a top priority for the administration. This directive stems from the Lagos State Real Estate Registration Agency law, which was passed in 2025, and is designed to bring greater order and fairness to the state's housing market.

Speaking at a governorship debate organized by the Nigeria Debate Consortium in Lagos, Hamzat underscored the rationale behind this enforcement drive. He pointed out the impracticality of tenants being asked for multiple years' rent in advance, noting that individuals typically do not receive their salaries so far ahead. This stance highlights a broader effort to address housing affordability and other systemic challenges within Lagos State's property sector, which has long been plagued by issues of excessive advance payments.

The push for stricter enforcement is underpinned by existing legal provisions, notably Section 4 of the Lagos State Tenancy Law 2011, which explicitly prohibits landlords or their agents from requesting more than one year's rent in advance from new tenants. This law also sets limits on advance payments for sitting tenants, depending on the specific type of tenancy agreement. The more recent Lagos State Real Estate Registration Agency law 2025 further solidifies this regulatory environment, making the one-year limit a central component of its provisions.

Beyond the advance rent rule, the 2025 law also mandates that all real estate agents operating within the state must register with the government and be included in an official database. This measure aims to enhance transparency and accountability within the real estate sector. Residents are encouraged to utilize the Lagos State Real Estate Registration Agency’s online platform to report any issues or non-compliance, providing crucial feedback that assists the government in monitoring and regulating market activities effectively.

In addition to regulating advance rent payments, the Lagos State government is pursuing a multi-faceted approach to improve housing access and affordability. Deputy Governor Hamzat outlined plans to expedite the completion of ongoing housing projects across the state. Furthermore, efforts are underway to significantly reduce the time required for obtaining property regularization and title documents, a process that has historically contributed to increased housing costs due to delays.

The state has already moved to automate the land document processing system, allowing residents to submit applications online, which is expected to streamline procedures and reduce bureaucratic hurdles. Hamzat also advocated for enhanced collaboration with private developers, urging them to consider undertaking projects in less affluent communities, such as Egodo, rather than concentrating solely on high-income areas like Ikoyi or Victoria Island. This strategy aims to ensure that housing provisions cater to a wider demographic, aligning with the government’s commitment to providing housing for all income levels.

The renewed emphasis on enforcing the one-year rent rule carries significant implications for both landlords and real estate agents in Lagos. Lawyers should advise their clients to strictly adhere to the stipulated advance rent limits, as the state government has clearly indicated its readiness for active enforcement. Non-compliance could lead to regulatory actions and potential disputes, impacting their operations and reputation. This policy aligns with the "Everyday Dignity" component of Hamzat's manifesto, which seeks to prevent rent payments from becoming an undue burden that undermines residents' well-being.

The issue of advance rent payments has long been a contentious point for tenants in Lagos, with numerous reports of landlords demanding multiple years' rent despite existing legal restrictions. The government's consideration of further reforms to its tenancy framework, addressing concerns like rent increases and agency practices, underscores a sustained commitment to creating a more equitable and transparent housing market. This enforcement drive, therefore, represents a crucial step towards ensuring that the legal protections afforded to tenants are actively upheld.

Lawyers should advise Lagos landlords and real estate agents to strictly adhere to the one-year advance rent limit as the state government signals active enforcement of the Lagos State Real Estate Registration Agency law and the Lagos State Tenancy Law 2011. Non-compliance could lead to regulatory action and disputes.

Source: Original reporting via Nigeria Debate Consortium