Arbitrary Rent Increments and Tenants' Protection: Legislative Framework for Fair Rent Practices in Nigeria
Working Paper
Executive Summary Across Nigeria’s major urban centres, particularly the Federal Capital Territory (FCT), Lagos, and Port Harcourt, tenants are increasingly confronted with steep and often arbitrary rent increases that place severe pressure on household finances and weaken housing stability. In many instances, rents are raised by 50 per cent or more within a single year, forcing tenants, especially low- and middle-income earners, to either absorb unsustainable costs or relocate at significant personal and economic expense. This challenge is occurring against the backdrop of a chronic shortage of affordable housing and rising urbanisation. Nigeria’s tenancy regulatory framework remains fragmented and largely state-driven. Existing laws, such as the Lagos State Tenancy Law 2011, provide procedural protections including notice requirements and the right to challenge unreasonable rent increases in court. However, they do not prescribe clear limits on the frequency or magnitude of rent reviews, nor do they establish objective benchmarks for determining fairness. While some states are pursuing reforms, such as the Lagos State Tenancy and Recovery of Premises Bill 2025 and the proposed Abia State Landlords and Tenants Bill, there is no comprehensive national framework to curb arbitrary rent hikes or harmonise tenant protections across the Federation. Recent debates in the House of Representatives on a proposed nationwide rent increase cap emphasise growing public concern but also highlight the absence of settled federal policy. Unchecked rent inflation aggravates housing insecurity, deepens inequality, and erodes social stability in high-demand urban markets. Although tenants may seek judicial relief, court processes are often slow, costly, and inaccessible, leaving many households effectively unprotected. The absence of statutory guidance on minimum rent review periods or permissible increase thresholds exposes tenants to exploitation, while weak enforcement and limited awareness of rights further compound vulnerability. Legislative engagement by the National Assembly is therefore essential to address this growing socio-economic challenge. Housing affordability is central to economic participation, labour mobility, and social cohesion. The lack of uniform national standards governing rent reviews creates uneven protections across states and allows exploitative practices to flourish. By establishing a coherent federal framework, the National Assembly can balance the legitimate interests of property owners with tenants’ constitutional rights to fairness, dignity, and security of tenure while supporting inclusive urban development. The National Assembly is therefore urged to: 1. Draft and sponsor a Federal Tenancy Regulation Bill establishing uniform national standards on rent review frequency and permissible increases, including statutory minimum review periods and caps tied to objective benchmarks such as inflation or market indices. 2. Mandate written rent review provisions in all residential lease agreements nationwide, with standardised notice requirements and accessible dispute resolution mechanisms enforceable in court. 3. Provide incentives and conditional support for states to align with the national framework, including the establishment or strengthening of rent tribunals or specialised housing courts to expedite tenancy disputes. 4. Require the creation of a national tenancy and rental market database, coordinated by the Federal Ministry of Housing, to track trends, inform policy, and strengthen compliance monitoring. Addressing arbitrary rent increases through clear, predictable, and enforceable legal standards will enhance housing stability, protect vulnerable households, and reinforce the rule of law in Nigeria’s urban housing markets. Timely legislative action by the National Assembly will provide much-needed clarity, equity, and confidence for both tenants and landlords while supporting sustainable urban growth and social cohesion nationwide.
