Olusegun Adeyemo
The Lagos State House of Assembly’s proposal to cut the maximum agency fee or commission on annual rent from 10 percent to 5 percent has sparked diverse reactions from legal experts, real estate stakeholders, and residents.
Speaker of the House, Mudashiru Obasa, disclosed the plan during a one-day public hearing on the new tenancy bill. Represented by the lawmaker for Oshodi-Isolo Constituency I, Stephen Ogundipe, Obasa said section 3(4) of the proposed legislation would make it an offence for any property agent to charge more than 5 percent of a year’s rent.
Legal consultant Bamofin Muyiwa Kusimo, in an interview with Journal Nigeria, noted that Lagos faces “unique and complex accommodation problems” due to its growing population and industrial activity, which attract migrants from across the country. He warned that the bill might have little effect unless the underlying supply shortage is addressed.
“All these legal measurements may not work because Lagosians are in dire need of accommodation and will accept whatever terms given by landlords or agents,” Kusimo said. “Legislators should do proper feasibility studies before introducing laws that may not be effective.”
Some residents expressed skepticism about the proposed reform. Mr. Kehinde Wahab questioned whether lawmakers were considering the financial pressures faced by landlords, including fees for building approvals, Certificates of Occupancy, ground rents, and rising construction costs. “Even government housing estates are overpriced. Who are they selling them to?” he asked.
Others argued that the proposal does not address deeper issues affecting tenants. “The problem goes beyond the 10 percent agency fee,” said Lagos resident Arowolo Adetola. “Caution fees, agreement charges, and even rent price regulation need legal attention.”
In contrast, some welcomed the move as a step toward curbing exploitation. Sagamu-based resident Azeez Ridwan said, “This is a great step towards ending agents’ high-handedness. Imagine someone ready to pay rent being unable to because they can’t afford the agent’s fee. Kudos to the Lagos Assembly.”
Sunday Charles Mkpuma and former Galaxy Television Assignment Editor Dammy Emmanuel Obisanya also praised the initiative, with Obisanya alleging that “thieves have hijacked real estate, collecting 40% of annual rent as agency fees and another 40% as agreement charges for doing nothing.” He called for a government reporting platform to tackle the abuse.
However, some industry players warned of unintended economic consequences. Realtor Prince Ademola questioned whether lawmakers had considered the effects of supply-and-demand imbalance. “It’s always difficult to control prices when supply is far lower than demand,” he said. “Government should focus on improving living standards instead of wasting time.”
A Lagos resident who identified as Aye Kooto stressed that the root problem was high rent. “How can a landlord demand ₦500,000–₦700,000 for a single room, toilet, and tiny kitchen in a substandard building? They should bring rent prices down first,” he argued.