Lagos state (4).webp
The Digest:

Lagos tenants are facing rental costs far beyond legal limits, with many paying double their annual rent due to excessive agency and legal fees. Despite the Lagos State Tenancy Law capping these fees at 10% each, unregistered agents routinely charge up to 37.5%, exploiting high demand and weak enforcement in one of Africa’s most competitive housing markets.

Key Points:
  • Lagos State law caps agency and legal fees at 10% of annual rent each.
  • Tenants report paying up to 37.5% in agency and legal fees.
  • One tenant paid ₦400,000 in fees on a ₦400,000 annual rent.
  • Informal, unregistered agents dominate transactions in suburban areas.
  • Accredited agents in upscale areas generally comply with the fee cap.
  • Weak enforcement and housing shortages enable the practice.
  • LASRERA now requires all agents to register for better oversight.
As the city grapples with affordability and regulation, the widening gap between law and practice leaves many residents navigating a rental market where survival often means accepting exploitation.

Sources: Nairametrics