Speaker of the Lagos House of Assembly, Mudashiru Obasa, has stated that the proposed bill to regulate the relationship between landlords and tenants will reduce the agency fee or commission on annual rent from ten to five per cent if passed into law.

Naijaonpoint reports that Obasa made this known on Wednesday, August 13, 2025, during a one-day public hearing on the bill.

Represented by the lawmaker representing Oshodi-Isolo Constituency, Stephen Ogundipe, Obasa said section 3(4) of the proposed tenancy law will make it an offence for any agent collecting more than five per cent of the annual rent.

The speaker stated that such an agent commits an offence punishable by a fine of ₦1 million, two years’ imprisonment, or both.

Obasa added that Lagos’ housing deficit had increased by 15 per cent, from 2.95 million units in 2016 to 3.4 million units in 2025.

He stated that over 70 per cent of Lagos residents are tenants, with many spending between 40 and 60 per cent of their income on rent.

According to Obasa, the bill will provide a framework for tenancy agreements, rent payment, property maintenance, and the process for recovery of premises.

He added that the legislation outlines clear eviction procedures to protect tenants from arbitrary evictions, which is essential for stability, especially for families and small businesses.

Section 3(4) of the draft of the proposed law reads, “A commission or agency fee in respect of any tenancy shall be agreed upon by the Agent and the Landlord or Tenant who engaged the agent, and the amount shall not exceed 5% of the amount paid as one year’s rent.”

However, professional bodies at the public hearing raised concerns over the five per cent agency fee limit, stating that it conflicts with established professional charges.