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Anyone who rents a home in Lagos knows the rigours of the system: demands for two years’ rent paid upfront, a maze of additional charges, and the ever-present risk of disputes over eviction. On the other hand, landlords often struggle with delayed rent payments, property damage, and tenants who remain in occupation long after their tenancies have expired.
While these frictions are not unique to Lagos, they become more exacerbated by the increasing population of the city amid an acute mismatch between demand and supply of housing. As a response to this, the Lagos State Government has proposed a Tenancy and Recovery of Premises Bill 2025– a broad-ranging reform of the extant tenancy laws of the state.
The bill aimed to rebalance the relationship between landlords and tenants, reduce abuses on both sides, and introduce clearer, more enforceable rules for rental agreements and property recovery.
Below is a concise explanation of the bill’s key provisions and their practical implications for tenants, landlords, and property agents.
Advance rent is now strictly regulated
Section 5 of the bill places firm limits on how much rent can be demanded or paid up front.
The bill stated that it shall be unlawful for a landlord or his agent to demand or receive from a sitting tenant rent in excess of three months in the case of a monthly tenant and one year in the case of a yearly tenant in respect of any premises without prejudice to the nature of tenancy held at the commencement of the tenancy.
It shall be unlawful for a sitting tenant to offer or pay rent in excess of three months for a monthly tenancy and one year for a yearly tenancy in respect of the premises.
It shall be unlawful for a landlord or his agent to demand or receive from a new or would-be tenant rent in excess of one year in respect of any premises.
It shall be unlawful for a new or would-be tenant to offer or pay rent in excess of one year in respect of any premises.
Any person who demands, receives, offers, or pays rent in excess of the prescribed limits commits an offence and is liable on conviction to a fine of ₦1,000,000 or three months’ imprisonment, or both.
Rent receipts are no longer optional
Section 6 requires that a landlord issue a rent receipt, whether paid in cash, by bank teller, electronic transfer, or other automated means.
The receipt must state the date on which rent was received; the names and addresses of the landlord and the tenant; the description and location of the premises in respect of which the rent is paid; the amount of rent paid; and the period to which the payment relates.
Rights of Tenants and Landlords
Section 7 provides that a tenant is entitled to quiet and peaceable enjoyment of the premises, including the right to privacy; freedom from unreasonable disturbance; exclusive possession of the premises, subject to the landlord’s restricted right of inspection; and use of common areas for reasonable and lawful purposes.
“Where a tenant, with the previous consent in writing of the landlord, effects improvements on the premises and the landlord determines the tenancy, such a tenant shall be entitled to claim compensation for the unexhausted improvements on being evicted or ejected from the premises,” the bill added.
Meanwhile, under section 9, the landlord has a right to conduct inspections of the premises during the tenancy upon giving prior notice to the tenant; insist and ensure that the premises is used for lawful purposes only; and demand and collect service charges on the premises where required.
Obligations of Tenants and Landlords
Section 8 provides that a tenant shall pay rent at the time and in the manner agreed; pay all existing and future rates and charges payable by the tenant, excluding accumulated bills of a previous occupant; keep the premises in good and tenantable repair, reasonable wear and tear excepted; permit inspection and repairs by the landlord or agent during reasonable daytime hours after prior written notice; and not alter, assign, or sublet the premises without written consent.
Others include notifying the landlord of any structural or substantial damage as soon as practicable and returning the premises in tenantable condition at the expiration of the tenancy or bearing the cost of restoration.
Meanwhile, Section 10 provides that a landlord shall not disturb the tenant’s quiet and peaceable enjoyment of the premises, including not removing the roof, cutting off the electricity or water supply or doing anything that will interfere with peaceful enjoyment of the demised premises, and pay all rates and charges required of him by law.
Others include not terminating or restricting the use of a common facility or service for the use of the tenants; not seizing any item or property of the tenant or interfering with the tenant’s access to his personal property; effecting repairs and maintaining the external and common parts of the premises; and issuing a receipt to the tenant after payment of rent.
Tax Obligations on Rental Income
Section 11 provides that the provisions of the Withholding Tax Regulations shall apply under the law in respect of tax payable on rental income.
Service Charges, Facility Charges, and Security Deposits
Section 12 provides that in any case where the landlord or his agent, in addition to rent, requires a tenant or licensee to pay for: services and facilities in the premises or service charges in flats or units that retain common parts on the premises.
The landlord or agent shall issue a separate receipt for such payments. The tenant is entitled to a written account at least once every six months detailing how the monies were expended.
Where a landlord or his agent collects a security deposit from a tenant to cover damages and repairs to the premises, the tenant shall be entitled to a refund of the security deposit at the determination of the tenancy, subject to the deduction of the cost of repairs for any damage to the fixtures or fittings of the premises.
Any service charge, facility charge, or security deposit demanded under this section must be clearly stated in the tenancy agreement.
7. Whoever hires the professional pays the fees
Section 13 provides that, in respect of any tenancy, it shall be the duty of the party who engages the services of a professional in respect of the tenancy agreement to pay the fees for such professional services.
8. Notice periods are clearly spelt out
Section 14 provides that where there is no agreement between the parties specifying the length of notice required to determine a tenancy, the following shall apply: a week’s notice for a tenant at will; one month’s notice for a monthly tenant; three months’ notice for a quarterly tenant; three months’ notice for a half-yearly tenant; and six months’ notice for a yearly tenant.
The section further provides that:
Where a monthly tenant is in arrears of two months’ rent, the tenancy shall lapse, and a seven-day written notice of the landlord’s intention to recover possession shall be served.
Where a quarterly tenant is in arrears of three months’ rent, the tenancy shall lapse, and a seven-day written notice of the landlord’s intention to recover possession will be served.
Where a half-yearly tenant is in arrears of three months’ rent, the tenancy shall lapse, and a seven-day written notice of the landlord’s intention to recover possession will be served.
Where a yearly tenant defaults in payment of rent for three months after the expiration of the lapsed tenancy, a seven-day written notice of the landlord’s intention to recover possession will be served.
In the case of a tenancy for a fixed term certain, no notice to quit shall be required at the expiration of the term, and unless the tenancy is renewed, the tenant shall vacate the premises.
Where the tenant holds over, and the landlord intends to proceed to court to recover possession, he shall serve a seven-day written notice of his intention to apply to recover possession. The nature of a tenancy shall, in the absence of any evidence to the contrary, be determined by reference to the time when the rent is paid or demanded.
Notice service must follow strict rules
Section 15 provides that notices under the law shall be served by proper service and must be served between 8:00 am and 5:00 pm.
While section 16 stipulates that a notice must be personally served to a tenant of a residential property. This can involve serving the tenant in person, delivering the notice to any adult residing at the property to be recovered, using a courier service to deliver the notice to the property to be recovered if the tenant cannot be located or is evading service, or affixing the notice to a prominent area of the property to be recovered.
It noted that if the person to be served is aware of the notice, the service will be considered appropriate.
Section 17 provides that, subject to any statutory provisions regulating service on corporate bodies, proper service on a tenant of a business premises shall be effected by personal service as provided under Section 16 for an individual tenant; delivery to a Director, Secretary, Trustee, or other senior, principal, or responsible officer of a corporate body or organisation; or leaving the notice at the registered, principal, or advertised office or place of business of the organisation within the jurisdiction.
Notices to Licensees
Section 18 provides that where a person is a licensee, and on the expiration or withdrawal of his licence, he refuses or neglects to give up possession, he shall be entitled to service of a seven-day notice of the owner’s intention to apply to recover possession.
Tenant Refusing or Neglecting to Give Up Possession
Section 19 provides that where a tenancy has been determined either by notice to quit or by expiration of a fixed term, and the tenant refuses or neglects to deliver up possession, the landlord or agent may serve a seven-day written notice of intention to proceed to recover possession.
