Lagos State’s recent proposal to introduce monthly and quarterly rent payment structures has sparked concerns among estate surveyors and real estate professionals, who warn that such a move could significantly reduce the availability of rental properties in the state.
According to Mr. Gbenga Ismail, Principal Partner at Ismail & Partners, the proposal—though intended to protect tenants—fails to adequately consider the interests of landlords and property developers who often rely on rent to recover their investment. He emphasized that property supply challenges could arise if landlords become discouraged, which in turn would negatively affect the overall growth of the rental housing market.
Mr. Ismail acknowledged that the concept of monthly rent payments may appear attractive in theory, especially during challenging economic times. However, he noted that for such a system to succeed in Lagos, the government must provide a strong legal framework and improved infrastructure to support its implementation. Without these foundational elements, the proposal could prove counterproductive.
He further suggested that before enforcing such policies across the board, the government should first invest in constructing public housing estates to increase the supply of residential units. Once that is in place, a formal Lagos Rent Policy with legal backing should be introduced to ensure that all stakeholders—particularly those in the private sector—operate under a unified standard.
In addition, Mr. Ismail pointed to ongoing reforms in the Lagos real estate sector, particularly the planned enforcement of a 10% cap on agent fees. This policy, he said, is a step in the right direction but should be part of a broader strategy to balance tenant protection with investor confidence.
Commenting on the economic challenges faced by residents, he praised the government’s initiative to rethink housing policies in a way that eases the burden on Lagosians. He acknowledged that while multi-year rent payments may be manageable for corporate tenants and high-income earners, the financial realities for many low- and middle-income residents make such terms difficult to meet.
Speaking on enforcement and accountability, Mr. Ismail referenced the Lagos State Real Estate Regulatory Authority (LASRERA) law, which sets limits on what landlords and agents can legally demand.
He stated that the government has now established formal channels for residents to report any agent who violates the law, as well as landlords who impose arbitrary charges or raise rents by excessive amounts—sometimes as much as 100%.
This development has generated considerable public interest and suggestions from Lagosians on how enforcement mechanisms can be strengthened.
When discussing the broader issue of affordability in the Lagos property market, Mr. Ismail stressed the need for comprehensive government policies to improve access to affordable land and reduce the cost of building materials.
“The government should make land available at marginal costs to enable developers to build without unnecessary bureaucratic interference,” he said. “Revenue can still be generated through ground rent and other housing-related fees without stifling development.”
He expressed concern over the high dependency on imported materials, noting that more than 70% of housing finishes are sourced from outside the country. This, he said, drastically inflates the cost of construction. “If a three-bedroom apartment is priced at ₦15 million, then we have to ask—how can the average Nigerian afford it?” he questioned.