Tenants set to pay monthly, quarterly, yearly rent as Lagos enforces reform

The Lagos State Government has reaffirmed its commitment to reform rent payments by implementing a flexible rent payment system, enabling tenants to pay rent on a monthly, quarterly, or annual basis—capped at a maximum of one year.

This assurance was given in a joint statement by the Commissioner for Housing, Mr. Moruf Akinderu‐Fatai, and the Special Adviser to the Governor on Housing, Mrs. Barakat Odunuga‐Bakare, following a consultative meeting with the leadership of the Estate, Rent and Commission Agents Association of Nigeria (ERCAN).

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HOW DO THEY PLAN TO GO ABOUT THIS RENT REFORM

Akinderu‐Fatai highlighted that the administration is actively collaborating with stakeholders to ensure a smooth transition to the new payment structure, which aims to ease the financial burden on tenants and enhance transparency in the housing sector. He also expressed concern over unethical conduct by some real estate agents, such as unwarranted rent increases and the levying of illegal charges. He stressed that such practices violate the Lagos State Real Estate Transaction Law.

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The commissioner pointed out that the law clearly defines the duties of estate agents and sets a ceiling of 10 percent on commissions for real estate transactions. He urged professional associations to report unregistered agents who encouraged landlords to inflate rents or demand unauthorized fees. Akinderu‐Fatai further called on ERCAN to actively promote flexible rent options—monthly, quarterly, and annually—among its members.

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He explained that the objective of the revised rent model is to curb exploitative practices, enhance housing affordability, safeguard landlords’ interests, and encourage consistent rent payments from tenants.

Responding on behalf of the association, ERCAN President Godwin Aleke pledged the group’s full support for the government’s rent reform efforts. He promised to work with key stakeholders to uphold best practices and restore professionalism across Lagos State’s real estate industry.

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