The Lagos State Tenancy and Recovery of Premises Bill 2025: Key Recommendations and Observations – By Olajide Abiodun, Esq.

The Lagos State House of Assembly is currently considering the Tenancy and Recovery of Premises Bill 2025, a piece of legislation that promises to reshape the rules governing landlord–tenant relations across the state.

From my review, the bill is comprehensive, ambitious, and, in many respects, a bold upgrade from the existing Tenancy Law of Lagos State (Cap. T1, LLS 2015).

However, for this bill to achieve its stated objectives of fairness, efficiency, and investor confidence, some fine-tuning is essential. Below, I share my recommendations and key observations.

My Top Recommendation – Lawyers’ Fees in Tenancy Agreements

One of the most overlooked aspects of tenancy transactions is the quality of tenancy agreements themselves. Poorly drafted agreements, often prepared by unqualified persons, are a leading cause of tenancy disputes.

To address this, I strongly recommend that the bill explicitly incorporate the provisions of the Legal Practitioners (Remuneration for Legal Documentation and Other Land Matters) Order into Section 13 on “Payment of Professional Fees”.

The new clause could read:

“In respect of tenancy agreements and related tenancy documentation, the fees payable to a legal practitioner shall be in accordance with the Legal Practitioners (Remuneration for Legal Documentation and Other Land Matters) Order, as may be amended from time to time. Any landlord, tenant, or estate agent who, in contravention of this provision, fails to engage a legal practitioner or refuses to pay the prescribed remuneration shall be liable on conviction to a fine not exceeding ₦500,000.00 for individuals and ₦1,000,000.00 for corporate bodies.”

Why this matters:

It ensures tenancy agreements are professionally prepared, reducing ambiguity and disputes.

It protects the integrity of the legal profession and ensures lawyers are fairly compensated.

It discourages the dangerous practice of allowing non-lawyers to prepare legally binding documents.

Other Recommendations

Safeguards for Service of Notices

While the bill usefully expands the acceptable methods for serving notices (including courier and affixing notices to premises), there should be safeguards to prevent abuse. I recommend requiring photographic evidence and, where possible, witness confirmation when notices are affixed to premises.

Transitional Provisions

The Bill repeals the existing tenancy law but is silent on how ongoing tenancies and cases under the old law will be treated. Clear transitional provisions are needed to avoid legal uncertainty.

My Observations on the Bill

Statewide Application

Unlike the current law, which applies only to listed urban and semi-urban areas, the bill applies to all premises in Lagos State, including both business and residential areas, with limited exemptions (e.g., staff quarters, student hostels, and emergency shelters).

This is a welcome move for uniformity, but rural areas may find it challenging to comply with urban-style procedures.

Stricter Regulation of Estate Agents

Agents must be registered under LASRERA, remit rent collected within seven working days, and charge no more than 5% of one year’s rent as agency fees. Breaches attract fines or imprisonment.

This will professionalise the industry but may push unregistered agents underground, especially in low-income communities.

Advance Rent Restrictions

The Bill criminalises over-collection by landlords and over-payment by tenants:

Sitting monthly tenants: max 3 months advance.

Sitting yearly tenants: max 1 year advance.

New tenants: max 1 year advance.

This protects tenants but may lead some landlords to adopt informal arrangements to bypass the law.

Automatic Tenancy Lapse for Arrears

Clause 14(5) provides that if a yearly tenant fails to pay rent for three months after tenancy expiry, the tenancy lapses automatically, and the landlord need serve only a seven-day notice.

Implication: This favours landlords in cases of serious arrears but could be harsh on tenants experiencing temporary financial hardship.

Modernised Court Procedures

The Bill introduces Originating Summons for possession, provisions for “persons unknown” in unlawful occupation, weekend/public holiday sittings, virtual hearings, and mandatory consideration of mediation.

These changes can speed up cases, but reliance on affidavits and summary processes might disadvantage unrepresented tenants.

Rent Increase Control

Tenants can apply to court to challenge “unreasonable” rent increases, with eviction barred until determination.

This is an important tenant safeguard, but the subjective test of “reasonableness” may discourage landlords from investing in property upgrades.

Final Analysis

The Tenancy and Recovery of Premises Bill 2025 is a forward-looking law that has the potential to bring balance, efficiency, and clarity to landlord-tenant relationships in Lagos State.

If the recommendations above, especially the one on lawyers’ remuneration in tenancy agreements, are adopted, we will see fewer disputes, stronger professional standards, and a housing market that works better for both landlords and tenants.

Source: BarristerNG