The Lagos Tenancy Bill 2025 was one of the most significant announcements made on 10 July 2026 at the Real Estate Business Forum co-hosted by Olisa Agbakoba Legal (OAL), Penuel Prime and the Diaspora Heritage Foundation at the Wheatbaker Hotel in Ikoyi. During the forum, the Lagos State Commissioner for Housing, Hon. Moruf Akinderu-Fatai, described a Lagos property market that would have seemed impossible five years ago: building approvals that once took 12 to 18 months now measured in weeks, with days as the target. But the approvals story was only the start. The Commissioner also outlined the proposed law capping advance rent at one year and agency fees at 5%, a 40% permit rebate for affordable housing developers, and new routes to federal housing finance. What stood out was not just the announcements; it was watching seasoned developers hear several of them for the first time. If you build, invest, buy, rent or broker property in Lagos, this is your briefing.
Lagos E-GIS and Faster C of O Processing: The End of “Bureaucratic Purgatory”
The Commissioner candidly addressed the challenges of the past. Back in 2021, acquiring a building permit or Certificate of Occupancy meant physical files shuttling between offices with little visibility on their status. This resulted in delays that translated directly into increased interest costs, budget overruns, and inflated prices for end-users – what he described as bureaucratic purgatory.
The primary solution is the newly launched Lagos State Electronic Geographic Information System (Lagos E-GIS), which centralises land registry, survey plans, and title searches into a single digital platform. The Certificate of Occupancy turnaround times have been reduced by over 60%. The Commissioner highlighted that land caught in legal uncertainty represents “dead capital.” A properly titled plot is a valuable asset that can be mortgaged, traded, or developed, while an untitled one is merely costly soil.
The Lagos Tenancy Bill 2025: New Rules for Landlords, Tenants and Agents
The most significant news shared was the Lagos State Tenancy and Recovery of Premises Bill 2025, which is currently under consideration by the Lagos State House of Assembly. This bill, which will replace the existing Tenancy Law (enacted 2011, now Cap. T1, Laws of Lagos State 2015), transforms the dynamics between landlords, tenants, and agents. Here are the key points:
- For Agents: Registration with the Lagos State Real Estate Regulatory Authority (LASRERA) will be mandatory. Practicing without registration will become a criminal offence. Agency fees will be capped at 5% of annual rent, significantly lower than the previous norm of 10% or more. Agents must remit rent to property owners within seven working days and provide receipts for all transactions.
- For Tenants: Landlords will be prohibited from demanding more than one year’s rent upfront from new tenants, while existing tenants cannot be asked to pay more than three months in advance. Forceful evictions, lock-outs, and harassment will be criminalised, ensuring that no tenant can be evicted without a valid court order. Additionally, tenants will gain the right to challenge unreasonable rent increases in court, and landlords cannot proceed with evictions while disputes are under consideration.
- For Everyone: Tenancy cases can now be initiated by originating summons, with hearings scheduled within 14 days. Courts may hold sessions on weekends, public holidays, or virtually.
While we can anticipate some pushback from landlords, the Commissioner argues that these reforms are pro-business rather than anti-business. A rental market defined by clear rules and swift dispute resolution minimises transaction costs, ultimately making Lagos property more attractive to investors. The real test will be enforcement – previous protections have existed since 2011, but the combination of criminal liability and the expedited hearing timeline is expected to drive quick behavioural changes.
The 40% Permit Rebate for Affordable Housing Developers in Lagos
One announcement that truly captured the attention of investors was Governor Sanwo-Olu’s approval of a 40% rebate on all permits, including Environmental Impact Assessments, Traffic Impact Assessments, and physical planning approvals – for developers embarking on affordable housing projects through joint ventures with the State.
This is a remarkable opportunity to significantly reduce statutory approval costs, which can erode project margins. However, many developers in the room were unaware of this benefit. The structuring of these joint ventures, including terms, title arrangements, and exit strategies, is where legal expertise will be crucial, but the incentive itself is real and accessible now.
The Renewed Hope Housing Programme: Federal Funding Routes for Lagos Developers
The Ministry is positioning itself as not just a regulator, but as “an enabler, a facilitator, and a bridge,” according to the Commissioner. Lagos is collaborating with the Federal Ministry of Housing, Federal Housing Authority, and Federal Mortgage Bank of Nigeria to link private developers with funding sources. This includes participation in the Renewed Hope housing programme, under which Lagos is set to receive over 20,000 of the planned 100,000 housing units nationwide.
When we factor in the infrastructure developments, such as the Lagos Rail Mass Transit corridors and essential road rehabilitations, the State’s invitation to investors in Transit-Oriented Development, urban regeneration, and mixed-use projects becomes increasingly compelling. Over 10,000 units have already been delivered in Sangotedo, Egan-Igando, Ibeshe-Ikorodu and Epe, priced deliberately below market.
What Landlords, Agents and Developers Should Do Now
Three Practical Takeaways:
- Untitled Land Regularisation: If your land remains untitled, the recent E-GIS reforms present a unique opportunity. Regularisation has become faster and more valuable than ever. Do not let your property become dead capital; the choice is now yours.
- Register with LASRERA: If you are an agent, take proactive steps and get registered with LASRERA before the new bill passes. Waiting could expose you to criminal liability – do not gamble with your career!
- Affordable Housing Incentives: For developers focusing on the affordable housing segment, the combination of a 40% Joint Venture (JV) rebate and access to federal financing could be the most favorable incentive Lagos has seen in the last decade. Ensure your joint venture agreement is well-structured to protect your investment.
Lagos is eager to do business. The real question is: Are you positioned to seize the opportunity?
OAL’s Real Estate team, which co-hosted the forum and is deeply involved in land titling and property rights reform in Lagos, is here to assist you. We specialise in title perfection, Certificate of Occupancy (C of O) processing, joint venture structuring, LASRERA compliance, and property disputes. To ensure a smooth transaction, reach out to us today
Frequently Asked Questions
- What is the new agency fee cap in Lagos?
Under the proposed Tenancy and Recovery of Premises Bill 2025, agency fees are now capped at 5% of the annual rent. Additionally, agents must register with LASRERA to operate legally.
- Can a landlord in Lagos demand two years’ rent upfront?
No, under the proposed Bill, prohibits landlords from requiring more than one year’s rent upfront from new tenants.
- How long does it take to obtain a Certificate of Occupancy in Lagos?
Thanks to the Lagos E-GIS, turnaround times for C of O applications have been reduced by over 60%. The state is now processing these applications in just a matter of days.
- What is the 40% rebate for developers?
Lagos offers a 40% rebate on all permits, including Environmental Impact Assessment (EIA), Traffic Impact Assessment (TIA), and physical planning approvals, for affordable housing projects developed in partnership with the state.
Stay ahead of the curve in the fast-evolving real estate landscape. Engage with us to navigate these changes and maximise your opportunities.