Lagos Tenants Struggle as Agents, Lawyers Flout 10% Fee Cap Despite Government Warnings

Lagos Tenants are struggling as House Agents and Lawyers flout 10% fee cap despite government warnings.

NewsOnline Nigeria reports that tenants across Lagos are facing mounting financial strain as agency and legal fees continue to exceed the legally prescribed limits under the Lagos State Tenancy Law (2011).

The law stipulates that agency and legal fees must not exceed 10% each of the annual rent, but tenants report paying far higher charges often equal to or greater than the rent itself.

Despite repeated warnings from the Lagos State Real Estate Regulatory Authority (LASRERA), violations remain widespread, especially in areas dominated by informal, unregistered agents.

Tenants Bear the Brunt

For Stainless Precious, a tenant in Erunwen, Ikorodu, renting a one-bedroom apartment at ₦400,000 turned into an expensive ordeal.

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“I paid ₦150,000 as agency fee and another ₦150,000 for legal fees, each amounting to 37.5% of the rent,” he told NewsOnline.

In addition, he was charged ₦100,000 as a damages deposit and ₦15,000 as viewing fees. His agent was not registered with the Nigerian Institution of Estate Surveyors and Valuers (NIESV), allowing him to operate outside professional oversight.

Similarly, Daniel Iwuoha, another Ikorodu resident, paid ₦240,000 total for a ₦150,000 apartment after extra charges were added by an informal agent.

These cases highlight how the 10% limit has become more of a guideline than an enforceable rule, especially in Lagos suburbs and informal settlements.

Compliance Stronger in High-End Markets

In contrast, professionals operating in high-end areas like Victoria Island and Lekki maintain compliance with the 10% cap.

Bukola Ekunola, a certified estate surveyor with NIESV, said his firm adheres strictly to the law.

“For a ₦16 million apartment in Victoria Island, agency and legal fees are each ₦1.6 million, exactly 10%,” he said.

Temple Ugwu, Lead Partner at Bluemeen Partners, also confirmed compliance, noting his firm charges 10% for agency and a reduced 5% for legal fees since they have an in-house legal team.

However, such adherence is mainly limited to licensed professionals, leaving informal markets largely unregulated.

Experts Cite Enforcement Gaps and Housing Shortage

Analysts say enforcement challenges and housing scarcity fuel widespread non-compliance.

Olabisi Odusanya, a real estate analyst, explained that tenants often overpay just to secure scarce apartments.

“In a city where demand far outstrips supply, tenants rarely have bargaining power,” she said. “Until the housing deficit is addressed, regulations like the 10% cap will remain weak.”

Ugwu added that professional bodies like NIESV and ESVABON can only regulate their members — not the numerous unregistered agents dominating the informal market.

Government Pushes for Reform

The Lagos State Government, through LASRERA, reaffirmed the 10% agency and legal fee rule in 2025 and made agent registration compulsory under its new real estate framework.

Operating without LASRERA accreditation now violates state law. The government says the move aims to curb fraud, improve transparency, and protect renters.

However, housing experts insist that without stricter monitoring and affordable housing supply, exorbitant fees and unregulated agents will persist — keeping Lagos renters trapped in an exploitative cycle.