Lagos Affordable Housing and Fair Tenancy Policy

Lagos is one of the most complex states to govern in Nigeria. Its diversity, population and continuous growth create unique demands on public policy. As Nigeria’s economic hub, Lagos attracts people from across the country and beyond in search of education, employment, business and better opportunities. As the population grows, the demand for accommodation grows with it.

Accommodation is therefore more than a private housing matter. It is an integral part of Lagos’ economy. When housing becomes unaffordable, the consequences extend beyond individual households. They affect transportation, education, businesses, public infrastructure, urban planning and the overall cost of living.

I propose a Lagos Rent Affordability and Tenant Protection Policy that addresses both residential and commercial accommodation.

The current increase in rent is creating pressure across other sectors of the state. Some residents are moving farther away from their places of work or leaving Lagos altogether because they cannot afford accommodation. Others are resorting to informal and unsafe spaces. The increasing use of bridges and other public spaces as places of shelter is one visible consequence of a housing problem that is becoming an urban management problem.

The pressure is also affecting public education. When families relocate outside Lagos because of housing costs, their children often move with them. This gradually affects enrolment in public schools. If government infrastructure, teachers and other resources are planned around higher projected enrolment while actual student numbers decline in some communities, resources may become inefficiently distributed and wastage may increase.

Commercial accommodation is another part of the problem. Rising shop rents are making it difficult for small businesses and informal entrepreneurs to secure legitimate spaces. Some traders who cannot afford shops resort to selling on streets, bridges, walkways and around drainage channels. This creates additional challenges for traffic management, sanitation, pedestrian safety and environmental enforcement.

A major part of the problem is the lack of transparency around agency charges. Prospective tenants often face multiple fees with no clear, consistently enforced percentage or standard structure. These additional costs increase the amount required before a person even moves into a property.

There is also a need for stronger quality control in the real estate sector. Some newly developed properties are rented out at high prices despite concerns about construction quality, basic infrastructure and suitability for habitation. Rent regulation therefore needs to work alongside stronger building inspection and enforcement.

In parts of the Mainland, including areas such as Ilupeju, Surulere and Ikeja, residents increasingly face significant rental costs. For example, a mini flat in some locations may attract annual rent in the range of ₦1.5 million to ₦2.5 million, while two-bedroom apartments may range from ₦3 million to ₦4 million or more. Commercial shops in strategic locations may also attract annual rents of ₦1 million and above. These figures vary considerably by location and property, but they demonstrate the pressure facing residents and small businesses.

The policy should therefore focus on five areas:

1. Standardised Agency Fees and Agent Registration:

Lagos State should establish a mandatory registration system for all estate agents and agencies. Each registered agent should receive a verifiable licence or identification number.

The state should set a fixed percentage for agency fees and require agents to disclose all charges before any payment is made.

Rent and agency payments should be made through traceable channels linked to the registered agent, agency or property owner. The state should also establish a simple platform for tenants to verify agents, report fraud and seek redress.

1. Lagos Rental Information System:

The state should develop a publicly accessible platform providing rental information across different areas, including indicative rental ranges, verified property information and tenancy guidelines. This would help reduce information gaps between landlords, agents and prospective tenants.

1. Stronger housing quality control:

All new residential and commercial developments should undergo appropriate inspection before being offered for rent. Developers and property owners should face consequences where properties fail established safety, structural and habitability standards.

1. Affordable dispute resolution:

Lagos should strengthen accessible mechanisms for resolving landlord-tenant disputes without forcing residents into lengthy and expensive legal processes. Community-level mediation and dedicated tenancy support centres could provide an early avenue for resolving disputes.

1. Commercial space and street trading policy:

The government should recognise the relationship between rising shop rents and street trading. Affordable commercial spaces, market redevelopment and structured micro-business zones should form part of the response. Enforcement alone will not address street trading if legitimate commercial spaces remain beyond the reach of small businesses.

The objective is not to undermine property owners, estate developers or investors. It is to create a rental environment where property investment remains viable while residents and businesses receive reasonable protection from exploitative practices and excessive transaction costs.

Lagos needs a housing policy that recognises the connection between where people live, where they work, where their children go to school and how businesses operate.

If accommodation becomes inaccessible, the consequences will continue to appear elsewhere. On our roads. Under our bridges. In our schools. On our streets. In our markets. And ultimately, in the wider Lagos economy.

A growing Lagos needs a housing and commercial accommodation system that grows with its people.