Rent Control Lagos
Rent Control Lagos
Cover page
Title page
Declaration Certification Dedication Acknowledgments Table
of Contents Table of Abbreviations Table of Cases
Table of Statutes
Abstract
Chapterization
Preliminary pages
Format of writing for Chapter one
Introduction (1.1)--Background to the study
explain motivation to choose the topics and what I intend to do
1.2 Statement of the problem (no s) the lacuna in my topic that
has not been done
Talk about what has been done and what my work intends to do
Chapter one will be bold
But subtile will not be in caps (caps in Background to the Study
will be B and S others )
1.3 Aim and Objectives of the Study
1.4 Methodology of the Study
1.5 Scope and Limitations of the Study
1.6 Significance of the Study
1.7 Organizational layout
1.8 Definition of Key Terms
Abstract comes last after the work is done
CHAPTER TWO --Literature Review
4
Review text relating to the work
No citation of cases and statutory provision comes in here
What To Do
Citing Textbooks that has to do with what I'm writing
2.1 Conceptual Frame Work
2.2 Theoretical frame work (check theories of law that support
my argument: sociological or naturalist or utilitarian )
2.3 Review of Related Literature
2.4 Summary of Review
CHAPTER THREE
3.1 Legal framework; Laws Relating to the Subject matter
1
LIST OF STATUTES
LIST OF CASES
Here is a list of the cases in capital letters:
2
4. **LAGOS STATE DEVELOPMENT AND PROPERTY
CORPORATION V FOREIGN FINANCE CORPORATION
(1987) 1 NWLR (PT. 50) 413**
5. **OSHODI V BALOGUN (1990) 6 NWLR (PT. 155) 260**
6. **AYINLA V BALOGUN (1990) 5 NWLR (PT. 148) 632**
7. **OGUNBIYI V ADEWUNMI (1988) 5 NWLR (PT. 93)
215**
8. **UNION BANK OF NIGERIA LTD. V OZIGI (1994) 3
NWLR (PT. 333) 385**
9. **BALOGUN V SALAMI (1998) 10 NWLR (PT. 568)
566**
10. **AGHENGHEN V WAGHOREGHOR (1974) 1 ALL
NLR 200**
LIST OF ABBREVIATIONS
3
- **FIRS** – Federal Inland Revenue Service
- **RPA** – Recovery of Premises Act
- **VAT** – Value Added Tax
- **GDP** – Gross Domestic Product
- **NGN** – Nigerian Naira
- **PPP** – Public-Private Partnership
- **ILO** – International Labour Organization
- **NBS** – National Bureau of Statistics
---
ABSTRACT
This project is a study on the **implications and challenges of rent
control in Nigeria**, focusing on the legal, economic, and social
dimensions of the country's housing market. The motivation for this study
stems from the increasing demand for affordable housing and the growing
concerns over tenant exploitation in major urban areas like Lagos, Abuja,
and Port Harcourt. Rent control, while intended to ensure housing
affordability and tenant protection, has faced significant implementation
barriers, making its effectiveness a subject of concern.
4
The aim of this study is to analyze the existing rent control framework,
assess its implications for tenants, landlords, and the broader economy,
and identify the key challenges that hinder its successful implementation.
The study employs a doctrinal method of research, relying on secondary
sources such as textbooks, judicial precedents, statutory provisions, and
academic literature to evaluate the legal and institutional structures
governing rent control in Nigeria.
The findings of this study reveal that, while rent control laws provide
some protections for tenants, they are often poorly enforced, leading to
tenant exploitation and informal market practices. Key challenges
identified include weak legal frameworks, institutional inefficiencies,
economic pressures, and landlord opposition. These challenges limit the
effectiveness of rent control, undermining its goal of providing affordable
and stable housing for low-income residents.
It is recommended in this study that Nigeria adopts a more standardized
and enforceable rent control policy across states, improves institutional
capacity for enforcement, and fosters better awareness among tenants of
their rights. Additionally, creating incentives for landlords to comply with
rent control laws can help ensure a more balanced rental housing market.
5
CHAPTER 1
BACKGROUND OF STUDY
Urbanization in Nigeria has accelerated in recent years, driven by
economic opportunities, migration, and population growth. Cities like
Lagos, Abuja, and Port Harcourt are the focal points of this rapid
urbanization, attracting millions of Nigerians seeking better employment
prospects and higher standards of living. However, this urban boom has
not been matched by the availability of affordable housing. As demand
for housing continues to rise, so too have rental prices, leading to
widespread housing affordability issues. Rent control has been introduced
in many parts of Nigeria as a solution to stabilize rental prices and protect
tenants from exploitative practices. However, the effectiveness of rent
control policies remains contentious.
6
This study explores the impact of rent control policies in Nigeria, with a
focus on major urban centers where these laws are most applicable. The
research seeks to understand how rent control has affected tenants,
landlords, and the housing market as a whole. It will also examine
alternative approaches to improving housing affordability, considering
lessons from other countries that have faced similar housing challenges.
7
residential properties in the state. This did not achieve much due to lack
of adequate follow-up by the government to see to its implementation.
The cropping effect of the hyper-inflation and the lack of co-operation by
the landlords did no provide a suitable environment for the
implementation and execution of the provision of the edict.
The third attempt was in 1996. The Edict came into being in July 1996.
The edict provides for the establishment of rent tribunals for the
determination and control of standard rents of residential premises and for
other purposes incidental or connected therewith. It re-established rent
tribunals that were abolished in 1981. This edict was meant to take effect
from December 1st 1995, but was never implemented. The unfavourable
economic climate and lack of adequate machinery for implementation did
not create a conductive environment for the take-off of this edict. This
edict ended only on paper.
The last and latest Rent Control Provision was contained in the Rent
Control and Recovery of Residential Premises Edict No 6 of Lagos State
which came into force on the 21st of March, 1997. As at the late 1990’s,
it once again revisited the turbulent area of landlord and tenant
relationship in a society where different interest compete for recognition
and protection. This had been the edict available till date though it went
extinct over the years due to the change in the state’s power seats.
Since 1920 when the issue of rent Control was first addressed in the
colony of Lagos and subsequently in Lagos State fifty-three years after,
no balance of convenience has been struck between landlords and tenants.
Landlords continue to cling to the old concept of freedom of contract, a
concept strengthened by the forces of demand and supply in an open
market and from unnecessary restraints by the state. To tenants on the
other hand, the 20th century ushered in a new era in contractual relations,
8
the movement from contract to status strengthened by the international
crusade against exploitation and inhuman treatment of a party to the
contract who is not equal in status with the other, appear to provide
tenants with justification for state intervention.
With the rising cost of building materials and the failure of successive
governments to shelter the masses at affordable rents, it is to be expected
that more people would chase fewer accommodation, thus paving way for
cut-throat competition by prospective tenants to secure an
accommodation and sometimes at their financial peril. The absence of an
effective monitoring team, the high level of illiteracy, and general lack of
awareness amongst the populace have thrown the masses into the cruel
9
hand of shylock landlords and made the tenants bemoan their
predicament with equanimity.
In recent time, particularly in the urban centres, there have been
numerous complaints of ill-treatments, oppression and massive
exploitation of tenants by some avaricious landlords who think that
tenants in their premises are slaves, apart from the exorbitant rents they
demand and receive before letting them in, some landlord go to the extent
of monitoring or even restricting the movement of tenants in their
premises.
Property law has shown immense concern and interest in the relationship
between landlords and tenants so much that the law has attempted to
regulate every aspect of the relationship from the creation of same and
recovery of premises from tenants.
But if successive government in the past tried and fail in their attempts to
regulate rent and in 1997, another regime deemed it fit to enact or re-
enact a rent control edict, perhaps the machinery of rent control demands
a re-valuation with a view to putting at rest the controversy surrounding
the introduction and sustenance of the institution on the landlord and
tenant relationship. But the question still remains, in that was this edict a
failure as others in the past?
---
10
The problem that this study addresses is the gap between the intended
objectives of rent control laws in Nigeria and their real-world impact on
housing affordability and availability. Although rent control was designed
to protect tenants from excessive rent increases, its actual effects have
been mixed. In many cases, rent control has not been uniformly enforced,
leading to a situation where tenants in some regions benefit from price
regulation, while others, particularly those in informal settlements,
remain unprotected. Additionally, there is evidence to suggest that rent
control may be contributing to housing shortages by discouraging new
investment in rental properties, as landlords opt to sell properties or
convert them into short-term leases to avoid rent control restrictions.
---
11
#### **1.3 Aim and Objectives of the Study**
The primary aim of this study is to evaluate the effects of rent control
policies on the Nigerian housing market, particularly in terms of their
impact on housing affordability, supply, and the behavior of landlords
and tenants. To achieve this aim, the study has outlined the following
specific objectives:
---
12
evaluation of the legal instruments that govern rent control, including
their interpretation and application by the courts.
---
13
high population density, rapid urbanization, and the widespread
application of rent control laws.
While the study will provide a detailed legal and policy analysis, it is
limited by the availability of recent and reliable data on the informal
rental market, where many low-income tenants reside. In many cases,
informal rental agreements are not subject to rent control laws, which
could affect the generalizability of the study's findings. Another
limitation is the constantly evolving nature of housing policies in Nigeria,
as new legislative and policy developments may emerge during the
course of this research.
---
14
challenges faced by developing countries like Nigeria, where rapid
urbanization has outpaced infrastructure development.
---
---
15
CHAPTER 2
LITERATURE REVIEW
At its core, rent control is a legal restriction placed on the amount landlords can charge
tenants for rent. The primary goal is to keep housing affordable for low- and middle-income
tenants in high-demand areas, where market-driven rent prices tend to exclude these groups
from adequate housing. However, rent control laws often vary in scope. Some policies
implement strict price ceilings, while others may allow modest rent increases tied to inflation
or the cost of living.
In Nigeria, rent control has been a response to the severe housing crisis faced by urban
populations. The housing market, particularly in cities like Lagos and Abuja, suffers from a
significant supply-demand imbalance. While urbanization continues at a rapid pace, the
development of affordable housing has lagged behind, resulting in an increase in rental costs
that disproportionately affects low-income families. Rent control policies have therefore
been implemented to counteract the negative social and economic consequences of this
situation.
- Supply and Demand Dynamics: Rent control directly affects the supply and demand
dynamics of the housing market. When rents are artificially kept low, demand often exceeds
supply, resulting in housing shortages, especially in densely populated urban areas. The
conceptual challenge here is balancing the need for affordable housing with maintaining a
healthy housing market that incentivizes new construction and proper maintenance of rental
properties.
- Market Intervention and Regulation: Rent control is a form of market intervention where
the government steps in to regulate prices in a sector typically governed by market forces.
16
This raises debates about the role of government in the housing market—whether it should
protect vulnerable populations through rent control or allow the market to dictate prices,
which may attract more investment in the housing sector. Some argue that long-term market
intervention can lead to unintended consequences, such as a decline in the quality of
housing stock or a disincentive for landlords to maintain properties.
- Tenants' Rights and Landlord Interests: Rent control often highlights the conflict between
tenants' rights and landlords' interests. While tenants benefit from predictable and lower
rents, landlords argue that rent control limits their ability to profit from their investments
and maintain their properties. Landlords may also seek ways to bypass rent control through
informal agreements or by shifting the rental stock towards short-term leases, which are
typically exempt from control.
Understanding these concepts is crucial for evaluating the effects of rent control in Nigeria.
The study will focus on how these dynamics play out in the Nigerian context, where
enforcement of laws can be inconsistent, and the housing market is fragmented between
formal and informal sectors.
Accomodation
Section 36 (1) of the Lagos State Rent Control and Recovery of
Residential Premises Edict No. 6. 1997 defines accommodation to which
the law applies as follows.
“Accommodation includes approving authorities designation by the
state as residencies regardless of user all building used as residences as
from the commencement of this Edict and all other buildings whether
not approving authorities but used as residences.”
17
to such a building irrespective of whether the building is used as a
warehouse other than residence.
Secondly, in anticipation of a situation where the landlords fails to obtain
building approval, the legislative further provides that the statue applies
to building used as residence whether or not the builder has obtained
planning authorities permit. Even where a building is designed and
approved as a shop, office or a place of worship but it is used as a
residence, the law would apply to it and where only part thereof is used as
residence, the law would apply to that part.
For the definition of “residence” we may adopt that preferred by the
authoritative Jowitt’s Dictionary English law, namely, “an abode where
an individual eats, drinks and sleeps or where his family or his servants
eat, drinks and sleep.”
18
accommodation in respect of which he claims a right to receive the
same.”
DEFINITION OF TENANT
A tenant according to Webster’s Dictionary is a person who pays rent to
occupy or use land, a building etc. where a person is granted the use of
premises with the grantor retaining some provisionary interest in that
property; the grantee may either be a licensee or a tenant. A licensee is
one who is permitted to enter into or remain on the property of another in
such circumstances that if the permission were absent, the occupier would
be a trespasser.
A tenant on the other hand, acquires an estate in the property. He enjoys
the property as of right. Unlike the licensee who occupies at the pleasure
of the landowner, the tenant is entitled to the property and can retain
possession even in the face of the most vehement objection to it by the
landlord.
TENANCIES
Normally, a tenancy could be taken to mean the same as a lease, but
under the law, tenancies are slightly different from leases in the sense that
19
it could be from week to week (weekly tenant), month to month (monthly
tenant), quarter to quarter or from year to year (quarterly or yearly
tenants) and where it is for 3 years and upwards, it implies a lease and the
law requires that the agreement must be stamped and registered. Tenancy
can go on for an indefinite period determined by either party giving
notice i.e. there is ‘no time certain’ in tenancies.
TYPES OF TENANCIES
Tenancy at sufferance:
A tenancy at sufferance arises where a person who has occupation by a
lawful title continues in possession after his title has terminated without
any statutory right to retain possession at the end of a fixed term and/or
without the consent of the landlord. He may be evicted at anytime after
proper notice is given. At common law, a tenant at sufferance has no
liability to pay rent for the period holding over. Where rent is paid and
20
accepted, there may well be a presumption that the tenancy has become a
periodic tenancy. ADEJUMO vs DAVID HUGHES & CO. LTD (1989) 5
NWLR (PT.120) 146 C.A.
Periodic tenancy:
Periodic tenancy is the commonest form of tenural system in Nigeria. The
terms which a periodic tenancy may be limited are principally - yearly,
quarterly, monthly or weekly. However, there is nothing to stop parties
from contracting for terms outside these conventional periods. In Land
settlement Association vs. Carr (1944) 2 ALL ER 126, a tenancy for a
period of 364 days and then for a further period of 364 days and
thereafter for a successive periods of 36 days is a periodic tenancy.
Periodic tenancy is in substances a tenancy at will because it subsists as
long as the parties consent to the arrangement.
Tenancy at will:
In definition, Littleton said “tenancy at will is where land or tenements
are let by one to another, to have and to hold him at the will of the lessor,
by force of which lease, the lessee is in possession… the lessee is called
tenant at will, because he hath no certain or sure estate, for the lessor may
put him out at what time it pleases him”. (Quoted from McGarry and
Wade, “the law of Real property”, pg. 45. 4th Edition).
This involves tenure i.e. a relationship of landlord and tenant though
without a definite term.
Sub-tenancy:
A sub-tenancy is granted by a tenant where he transfers his interest in the
property to a third-party while retaining a reversion. If he transfers all the
21
interest he has in the property, the transaction is an assignment. For
example, if the tenant has an un-expired tem of 22years and he transfers
any term – even if one day lesser than that to a 3 rd party, that is sub-
tenancy. If he transfers the whole residue of the term, that constitutes an
assignment of the lease. A sub-tenancy may also arise where a tenant
sublets part of the premises while he retains possession of the remaining
part. It is immaterial that the sub-tenants term is of the same duration as
the tenants. Thus, a monthly tenant of two shops who grants a monthly
tenancy over one shop while he retains possession of the other thereby
creates a sub-tenancy. DABIRA VS ADELAJA (1973) 11 66 HCJ 97
22
and secondly, as an acknowledgment made by the tenant to the landlord
of his fealty or tenure.
Rent must always be a profit; but there is no occasion for it to be, as it
usually is a sum of money for spurs, capons, horses, corn and other
matters that may need be and occasionally are rendered by the way of
rent. It may also consist in services and manual operations as to plough so
many acres of land and the like, which services in the eye of law are
profits. This profits must also be certain or capable of being reduced to a
certainty by either party and must issue out of the thing granted and not
be part of the land, or thing itself, where in it differs from an exception in
the grant, which is always part of the thing granted. i.e. rents are meant
for the occupation of land and not for the alienation of such land. But a
royalty payable to a landlord upon the bricks which are made out of a
brickfield is a rent, although it is not paid for the produce of the land,
which is periodically renewed, but for portions of the land itself, which is
gradually exhausted by the working.
23
of days it shall be lawful to distrain for the same. In such case, the
land is liable to the distress, not of common right, but by virtue of
the clause in the deed, and therefore it is called a rent-charge
because in this manner the land is charged with a distress for the
payment of it. A power of distress is given by the Law of Property
Act, 1925, s. 121, in the case of any annual sum charged on land.
24
few years of the term only, during which the houses to be built will
be in course of erection and therefore not yet profitable to the
lessee.
25
which they endured till 1954 when it was lifted, but only to be re-imposed
again as an anti-inflationary measure in 1971 and 1972. Rent Control has
been a common feature in government housing policies since the early
forties in most of the third world countries including Nigeria.
The theoretical framework of this study draws upon various legal and economic theories that
explain the rationale for rent control and its implications on the housing market. These
theories offer a lens through which to understand the competing interests of tenants,
landlords, and the government, as well as the broader societal goals of rent control policies.
Sociological Theories
Sociological theories provide the foundation for many rent control policies, especially in
contexts where housing is seen as a fundamental right. The idea that everyone deserves
access to decent, affordable housing is central to sociological perspectives on rent control.
Housing is not only a commodity but also a social good that contributes to the well-being of
individuals and communities. In this view, rent control is justified as a means of protecting
vulnerable populations—such as low-income families, the elderly, and young people entering
the workforce—from the predatory practices of landlords who exploit high demand to
increase rents excessively.
One key sociological theory relevant to rent control is the **Social Justice Theory**. This
theory argues that rent control is a tool to ensure equitable distribution of housing
resources, particularly in urban areas where the gap between rich and poor is most
pronounced. According to this perspective, the government has a responsibility to intervene
26
in the housing market to prevent social inequality and ensure that even the most
disadvantaged members of society have access to safe and affordable housing. This theory
will be used to assess how rent control in Nigeria aligns with broader goals of social justice,
especially in the context of rapid urbanization and economic inequality.
Economic Theories
Economic theories of rent control focus on its impact on the housing market and question
the long-term sustainability of such policies. Critics argue that rent control distorts the
natural equilibrium of supply and demand, leading to unintended consequences such as
housing shortages and deterioration in housing quality. According to classical economic
theory, price controls—whether on goods or services—tend to reduce the incentive for
producers (in this case, landlords) to offer those goods or services.
Supply-Side Theory holds that when rent is capped below the market equilibrium, landlords
may withdraw their properties from the rental market, invest less in maintenance, or shift
their investment to other more profitable sectors. Additionally, new construction may be
discouraged because developers fear that future rent controls could limit their return on
investment. In this view, rent control is seen as a short-term solution that creates long-term
problems in the housing market.
On the other hand, Behavioral Economics suggests that landlords and tenants do not always
behave as purely rational actors. Rent control may provide stability for tenants, allowing
them to invest in their local communities and build stronger social ties, which could have
positive long-term benefits for society. This theory will be used to evaluate whether rent
control policies in Nigeria help tenants establish more permanent living conditions and
contribute to community development.
Natural law theories assert that certain rights, including the right to housing, are inherent
and should be protected by law. Proponents of rent control from a natural law perspective
argue that everyone has an inherent right to shelter, and that housing should not be left
solely to market forces, which often prioritize profit over human dignity. The Right to Housing
is seen as a fundamental human right that governments are obligated to protect, especially
in the face of market failures that leave a significant portion of the population without
adequate shelter.
In this framework, rent control is viewed as a moral imperative, ensuring that even the
poorest citizens have access to housing. This theory will be employed to analyze how
Nigerian rent control policies align with international human rights norms and whether these
policies fulfill the government’s obligation to ensure adequate housing for all its citizens.
Utilitarian Theories
Utilitarianism focuses on the greatest good for the greatest number, and rent control can be
justified if it results in overall social welfare. The Utilitarian Theory of Law suggests that
policies should be evaluated based on their consequences for society as a whole. Rent
control can be seen as beneficial if it promotes greater societal welfare by making housing
more accessible to a larger portion of the population, even if it comes at the cost of reduced
profits for landlords.
Utilitarianism also allows for a cost-benefit analysis of rent control policies. From this
perspective, the costs of rent control (such as reduced housing supply and potential
27
disincentives for landlords) must be weighed against the benefits (such as housing stability
for low-income tenants and prevention of homelessness). This theory will guide the study in
evaluating whether the overall benefits of rent control in Nigeria outweigh its potential
drawbacks.
Regulatory Theories
Regulatory Theory focuses on the role of government in correcting market failures and
promoting public interest. Rent control can be viewed as a regulatory measure designed to
correct the market's failure to provide affordable housing for all. In highly urbanized and
populated cities like Lagos and Abuja, rent control may be necessary to curb market abuses
and ensure fair treatment of tenants. However, regulatory theory also raises questions about
the efficacy of government intervention and the potential for rent control policies to be
manipulated or poorly enforced, leading to unintended consequences such as corruption,
inefficiency, and favoritism.
This theoretical framework will be used to assess how effectively the Nigerian government
has implemented and enforced rent control policies and whether regulatory bodies have
been able to balance the interests of tenants, landlords, and the housing market at large.
The concept of rent control is not new and has its roots in early 20th-century housing crises,
particularly during and after World War I and II. Rent control policies were originally
designed as emergency measures to protect tenants from the steep increase in rent caused
by housing shortages. In countries such as the United States, the United Kingdom, and parts
of Europe, rent control was a temporary response to these crises but eventually became a
more permanent fixture in many housing markets.
Nigeria's historical experience with rent control also emerged during periods of housing
shortages, particularly in the post-independence era when rapid urbanization led to
increased demand for housing. The Rent Control and Recovery of Residential Premises Law,
which was introduced in various states, sought to curb excessive rent increases and ensure
that low-income tenants could access affordable housing. The legal history of rent control in
Nigeria reveals that while these laws were intended to protect tenants, they have often faced
challenges in enforcement, particularly in informal settlements where much of the urban
population resides.
Literature on the historical evolution of rent control highlights a recurring tension between
protecting tenants and stimulating investment in the housing market. This tension remains
central to contemporary debates about the role of rent control in modern housing policy.
A significant portion of the literature on rent control focuses on its economic impacts,
particularly in terms of housing supply, rental prices, and market distortions. According to
classic economic theory price controls (including rent control) interfere with the natural
dynamics of supply and demand, often leading to unintended negative consequences.
28
Scholars like Jenkins and Smith (1991) argue that rent control discourages new investment in
the housing market, as developers and landlords perceive capped rental prices as insufficient
for a return on their investment. This, in turn, leads to housing shortages and the
deterioration of the existing housing stock, as landlords may neglect maintenance and
repairs in response to limited profits. This phenomenon has been observed in various
jurisdictions, including New York City, where strict rent control laws led to a sharp decline in
new construction and rental availability over time.
On the other hand, proponents of rent control argue that these policies are necessary to
protect vulnerable populations from exploitation, particularly in high-demand urban areas
where housing affordability is a serious concern. Studies such as Arnott (1995) argue that
rent control can provide housing stability, reduce displacement, and foster community
cohesion. For low-income tenants, rent control often represents the only safeguard against
escalating rents in rapidly gentrifying neighborhoods. The literature also highlights how rent
control can reduce housing cost burdens, allowing tenants to allocate their income towards
other necessities such as food, healthcare, and education.
In the Nigerian context, the literature on the economic effects of rent control is relatively
sparse, with few empirical studies assessing its long-term impacts. However, anecdotal
evidence suggests that rent control laws in cities like Lagos and Abuja have not been as
effective as intended. In many cases, landlords have found ways to circumvent these laws,
either through informal rental agreements or by converting properties into short-term
leases, which are typically exempt from rent control restrictions. Ikejiofor (1999) argues that
one of the major limitations of rent control in Nigeria is the inconsistent enforcement of
these laws, particularly in informal settlements where landlords operate outside the purview
of government regulations.
Moreover, several studies have pointed to the potential social impacts of rent control,
particularly in terms of housing inequality. For example, rent control may disproportionately
benefit middle-income tenants who can secure long-term leases in rent-controlled units,
while low-income tenants, who are often relegated to informal housing markets, remain
unprotected. This creates a dual housing market where the formal, rent-controlled sector
benefits a relatively small portion of the population, while the majority continues to face
unaffordable rents in unregulated sectors.
The law relating to landlord and tenant relationship has come to be one of
the most extensive and far-reaching branches of law today. Its origin lay
in the dim past when man first started to distinguish between “thine” and
“mine” and though its significance may not be of equal importance in all
states, yet even in Russia where land belongs to the state, personal rights
in houses with the use of a small plot of land attached thereto and the
inheritance thereof, are recognized by law.
29
respective assigns. The relationship is one of tenure, and although in
former times it existed between freeholds, where the owner of a freehold,
granted there-out a lesser estate of his freehold rights (such as an estate
for life). In practice at the present day, the relationship of landlord and
tenant arises where the owner of an estate in land grants to another an
estate lesser than the freehold and/or lesser than what he himself
possesses in the land
30
the tenancy will be presumed to be for a long period and indefinite in
duration.
31
Explaining the rationale of any Rent Control Legislation, OPUTA J. S.
C. in ODUYE vs. NIGERIAN AIRWAYS observed that:
“The general principle of the Rent Acts has always been to guard
against the social and economic evils generated by shortage of
housing and the greed and rapacity of some landlords who
increase rent and try to evict tenants who refuse or are unable to
pay the higher rents demanded.”
Shortly after World War II, the legislature in Nigeria realised that tenants
could not be left at the mercy of their landlords who naturally would want
to exercise their freedoms to the limits in the face of acute shortage in
housing supply. One of the obvious manifestations of the present urban
crisis in Nigeria is the soaring rents for residential accommodation. This
arises due to the gap between the demand and the supply of decent
residential accommodations. One of the main reasons for the anti-social
rents for residential accommodation in the major urban centres in the
country is this continuously widening gap between the supply and the
demand for houses at rents the masses can afford. Thus, the Federal
Government and the State governments promulgated different Rent
Control Edicts as applied to the different states.
32
Factors which precipitated the enactment of the Rent Control Edict in
Lagos State in 1973 were the cumulative effect of certain socio-economic
problems following the aftermath of the Nigerian Civil War. People from
the various war-torn areas migrated to the less affected areas like Lagos
in view of starting life again, thereby aggravated pressure on the limited
available accommodations supplied. Thus, gave the landlords the
opportunity to hike rent. The level of inflation and government’s ill-
advised policy of making ex-gratia payment (UDOJI AWARDS) without
increase in goods and services led to the rise in the cost of the
consequential increase in the rent of residential properties. Absence of
concrete policy on housing despite the population explosion in urban
centres provided an opportunity for the exploitation with the landlords
calling the bluff of prospective tenants and providing accommodation
only to the highest bidders.
The period also coincided with the dangerous trend mounting and
following from the greed of many landlords to insist on twelve or more
months rent in advance and as it dawn on landlords that such rent could
be gotten from many tenants in occupation. A new dimension was
therefore sought by these landlords using frequently the Recovery of
Premises all purely for their financial spur. Thus, the absence of defined
Legislation on the security of tenancy provided an opportunity for these
landlords to terminate tenancy without any legitimate impetus.
33
It was in the course of these crises that the first Rent Control Edict was
enacted in 1973. The edict established tribunals for the determination of
standard rents payable by tenants irrespective of the residential
accommodation and provided for security of tenancy, restriction of
ejection and distress for rent. This edict was consolidated by the Rent
Control and Recovery of Residential Premises Edict No. 9, 1976
promulgated during Brigadier General Mobolaji Johnson’s
administration. The rent then fixed were termed “standard and maximum
rent” for all categories of accommodation. Its spirit and subsequent
enforcement were geared towards easing pressure on tenants by reducing
the rent payable on residential accommodation.
The 1976 edict was later repealed by the Rent Control and Recovery of
Residential Premises (Amendment) Edict 1986. It was promulgated on
the 21st day of March, 1986. The edict only made amendments to sections
4 and 14 of Edict No. 9. 1976. Though, the third attempt was in 1986, it
never came into force until July 1996.
CHAPTER 3
.1 INTRODUCTION
34
This section delves into the legal structure that governs rent control in Nigeria, highlighting
key statutes, case law, and the historical context of rent control legislation in the country.
The legal framework for rent control in Nigeria is shaped by a combination of federal and
state-level legislation, which has evolved over the years in response to the growing demand
for affordable housing, particularly in urban centers like Lagos, Abuja, and Port Harcourt. This
chapter critically examines the major laws governing rent control in Nigeria, the scope of
their application, and the challenges in enforcing these laws. It also explores the interaction
between rent control laws and other property laws, and how this legal framework has
impacted both landlords and tenants.
Rent control laws in Nigeria have their origins in the post-colonial period when the country
experienced significant urban migration. As cities like Lagos became hubs of economic
activity, a sharp increase in demand for housing led to rising rental prices, which
disproportionately affected low-income populations. In response, rent control legislation was
introduced to protect tenants from exploitative rent increases and arbitrary evictions.
The first rent control legislation in Nigeria was enacted under British colonial rule. The
**Rent Restriction Act of 1941** was introduced as a temporary measure during World War
II to address housing shortages. This law aimed to freeze rents at pre-war levels, limiting the
ability of landlords to raise rents during the housing crisis. However, this early legislation was
poorly enforced and primarily applied to select urban areas.
After independence, the Nigerian government continued to grapple with housing challenges
as rapid urbanization led to overcrowding and an inadequate supply of affordable rental
housing. Rent control laws were gradually extended and modified by state governments,
with varying degrees of success in implementation.
3.1.2 The Rent Control and Recovery of Residential Premises Laws (RCRRPL)
In the post-independence period, state-level rent control laws emerged as a response to the
growing housing crisis in major cities. One of the most prominent pieces of legislation in this
area is the Rent Control and Recovery of Residential Premises Law (RCRRPL), which governs
the relationship between landlords and tenants in certain urban centers.
The RCRRPL was enacted in various states, most notably in Lagos, and provides detailed
provisions on permissible rent increases, the recovery of possession of premises, and the
rights of both tenants and landlords. The key objectives of the RCRRPL are to:
1. Regulate rent increases: The law sets a maximum allowable rent increase based on the
location and type of property. This prevents landlords from imposing excessive rent hikes
that would disproportionately affect tenants, particularly low-income renters.
2. Ensure tenant protection: The law grants tenants certain protections, such as the right to
remain in a rented property unless there are justifiable grounds for eviction (e.g., non-
payment of rent, illegal use of the premises).
3. Provide a framework for dispute resolution: The RCRRPL also establishes processes for
resolving disputes between landlords and tenants, primarily through rent tribunals or
35
magistrate courts. These tribunals are empowered to hear cases related to rent increases,
eviction notices, and breaches of tenancy agreements.
One of the most notable provisions of the RCRRPL is that it requires rent increases to be
approved by a Rent Control Tribunal or court. This provision is meant to prevent arbitrary
rent hikes, ensuring that any increase is justifiable based on factors such as inflation or
improvements made to the property.
In 2011, Lagos State enacted the Lagos State Tenancy Law, which represents a significant
update to the legal framework governing landlord-tenant relationships. This law applies to all
residential and commercial properties in Lagos State, with some exceptions (such as
properties in high-income neighborhoods or properties leased by multinational
corporations). The Lagos State Tenancy Law includes several key provisions that reflect the
evolving housing challenges in the state:
- Rent Control Provisions: Similar to earlier laws, the Lagos State Tenancy Law sets guidelines
on rent increases and requires landlords to give tenants at least six months’ notice before
any rent hike. It also caps the amount of rent that can be demanded as advance payment,
limiting landlords to a maximum of one year’s rent in advance for new tenants and six
months’ rent for renewing tenants.
- Eviction Protections: The law introduces stronger eviction protections for tenants, requiring
landlords to follow due process before evicting tenants. Evictions can only occur after a court
order has been obtained, and tenants are given notice periods ranging from one week to six
months, depending on the circumstances.
- Dispute Resolution: The Lagos State Tenancy Law provides for the establishment of
Tenancy Tribunalsto adjudicate disputes between landlords and tenants. These tribunals are
meant to offer a faster, more accessible alternative to regular courts, which often face delays
and backlogs.
- Penalties for Violations: Landlords who violate the provisions of the Lagos State Tenancy
Law, such as by demanding more than the allowable rent advance or attempting to evict
tenants without a court order, face penalties, including fines and imprisonment.
This law has been seen as a progressive step toward addressing the housing affordability
crisis in Lagos, but its enforcement has been inconsistent, particularly in informal settlements
where much of the population resides.
3.1.4 The Federal Competition and Consumer Protection Act (FCCPA), 2018
At the federal level, the Federal Competition and Consumer Protection Act (FCCPA), 2018
includes provisions relevant to rent control and tenant protections. The FCCPA aims to
promote fair competition and protect consumers from exploitative practices in various
sectors, including housing. Under this law, landlords are considered service providers, and
tenants are protected as consumers.
The FCCPA provides a general framework for addressing issues of unfair trade practices,
which could include exploitative rent increases or deceptive practices in rental agreements.
Tenants have the right to file complaints with the Federal Competition and Consumer
Protection Commission (FCCPC) if they believe their landlord has violated their rights. The
36
FCCPC is empowered to investigate such complaints and impose penalties on landlords found
guilty of misconduct.
While the FCCPA is not specifically designed for rent control, its broad consumer protection
mandate provides tenants with an additional avenue for seeking redress against unfair
practices. However, the applicability of this law to the housing sector is still evolving, and its
potential to address rent control issues remains underutilized.
In 1996, the Lagos State government revisited the area of Rent Control in
the state through the enactment of the Rent Control (Tribunal) Edict No.
9. However, this edict was non-operational due to the absence of the
necessary machinery needed for its administration and enforcement. It
was subsequently repealed along with its predecessor by the Rent Control
and Recovery of Residential Premise Edict No. 6, 1997.
Hence, if the different Rent Control Legislations in the past did not
change the attitude of the landlords nor protect the tenants against the
alleged greed advance of the landlords, what exactly was the new edict
meant to achieve?
This edict was promulgated during Colonel Mohammed Buba Marwa led
administration and it became enforced on the 21 st day of March 1997.
Although the edict is cited as “the Rent Control and Recovery of
Residential Premises Edict No. 6, 1997”, it only revealed its main
objective as an edict to control the rent of residential premises, also to
establish a rent tribunal and for other purposes connected therewith. This
objective falls short of the recovery of residential premises. This edict
thus, adopted in substance a long title which typical of Rent Control
37
Statutes. It also contains in addition to the provisions relating to Rent
Control, the procedure for the Recovery of Premises such as those
contained in the repealed Edict No. 9 of 1976 with its modifications.
The edict exhibits certain significant features with regard to Rent Control
Provisions and these are:
38
of this Edict and all other buildings whether or not approved by
the building approving authorities but used as residences.”
The Edict appears to cover all district in Lagos State for which rent as
regulated by virtue of the Rent Control (standard rent) order made by the
Governor in pursuant of section 1 of the Edict. Whereby an error of
omission, a district is not listed, the zone in which the nearest district is
located will apply. Thus, until an order is expressly made by the Military
Governor specifically exempting the application of the Edict to any
particular accommodation or area, such exemption cannot be implied
from an omission to mention a district in the existing order made by the
Governor. The only limitation on the Edict’s application for now is where
the annual rental value of the residential accommodation as at 1996 was
more than =N= 250,000.
39
THE ESTABLISHMENT AND THE COMPOSITION
OF THE RENT TRIBUNAL.
The chairman and the Estate Surveyor and Valuer shall form a quorum. A
member shall hold office at the pleasure of the Military Administrator or
until resignation in writing, if the member is not employed in the public
service of the state. The Military Administrator may remove or appoint
any person as he may deem fit as chairman or member of the tribunal.
While the inclusion of representatives of each Landlords’ and Tenants’
associations in the composition of the tribunal may appear to be a
democratization process of attaining justice in matters relating to fixing of
standard rent acceptable to the two major interest concerned, namely:
a. Landlord and Tenant.
b. The prudence of retaining the provisions under the new
dispensation is open to question.
40
Apart from not stating any credential qualifying such representatives at
least, as fit and proper persons to serve as members of the tribunal, their
role under the new edict, where standard rents have been predetermined
and fixed is at best political, and at most, negative in practical terms.
Ascertaining, fixing and enforcing of standard rents by the tribunal
should normally entail a sound legal mind to interpret the law of the edict
and the assistance of an Estate Surveyor and Valuer as an assessor in
evaluating factors such as the nature of tenement, the nature and value of
infrastructure and other facilities.
This is not to say however, that such representatives do not have a role to
play in rent control since they represent the interest of the society the law
is meant to govern; but that is at the stage of law making. For example,
their input and involvement in debates at the formative stage of
legislation may go a long way in assisting the state in formulating
effective policy on rent control and consequently, a general acceptable
and workable system through legislation, such socio-political role
becomes irrelevant at the level of interpretation and enforcement of the
law and may be-cloud objectivity and hamper effective running of one
judicial machinery in practice.
41
The reasonability of such inclusion is further put into question when it is
realized that members shall be remunerated from the state coffers. With
the existence of about 20 (twenty) Local Government Areas in Lagos
State, the running expenses of the rent tribunal will be enormous and far
from being cost effective. Except the edict assign a functional role to such
representatives, which will justify the enormous expenditure of the state
on their remunerations and allowances, it is of my opinion, that the tax
payers’ money be saved from such an unjustifiable expenditure.
42
Such standard rent may be reviewed upwards, say every three years or by
such other periods the Military administrator may prescribe and with a
margin not more than 20%. {See sections 2 (2) and (3) of the Edict}. For
purposes of ascertaining and fixing standard rents, the tribunal is vested
with the jurisdiction on application to it by the landlord or tenant or any
other interested persons, to determine standard rent payable in respect of
any residential accommodation let before or after the commencement of
the edict, (see section 7 (1) of the Edict) within the limit of the rent
prescribed in the schedule to the order made by the Military
Administrator in pursuant of the edict.
While the provision on rent review in the new edict may appear to be an
improvement on the law No. 9 of 1976 now repealed, it does not reflect
the economic realities of Nigeria. Rent must not merely be aimed at the
prevailing social circumstances but must essentially be aligned with
economic realities to be meaniful.
Taking a closer look at the edict and the order made there-under with
regards to standard rent would reveal the sole determination of
government to improve the social conditions of the poor masses by
ensuring affordable accommodation under the hopeless economic
situation over which the state has no control. The irony of the situation is
that while government is pegging rent review at 20% every three years,
there is no corresponding data to show the same or an almost equal level
of inflation.
The rate of inflation over the last one decade has been put at over 300%
(SOURCE: G. ONASODE: Economic Development in the past one
decade: Problems and Prospects.” U.K.); which is a far cry from
43
Government’s presumption on the measure of rent review every three
years.
Any rent prescribed as standard rent under the edict shall supercede any
rent between the landlord and the tenant and any order made in respect of
such standard rent by the tribunal, shall bind all persons including the
landlord, tenant or mortgagee of such premises.
AGREEMENTS ON RENT
The edict made it unlawful for a landlord to accept rent on residential
accommodation in excess of the standard rent prescribed. {See section 3
(1)}. Although the edict enables the landlord to apply to the tribunal to
vary the standard rent, the ground for such application was not made
known.
44
Section 34 paragraph (e) of the edict). Pending a laid down criterion in
any such regulation, the criteria to be applied by the tribunal where there
is any application to vary remain a mute point.
45
In addition to the penalty imposed by the statute, can it be said that the
whole agreement itself is void? The position of the law as laid down by
the court of Appeal in FIRST BANK of NIGERIA LTD vs. PAN
BISBILDER NIGERIA LTD (1990) 2 NWLR (pt 1134) P. 647,
dealing with the same situation is that where a statute merely prohibits
certain class of contract and stipulates a penalty for the prohibition
without expressly providing whether or not the contract is void, it does
not follow if the contract is valid. Either of the parties to the contract can
rely on it in making a claim or enforcing a right there-under.
Also, a receipt of excess rent or illegal loan or premium under the edict
will not make the whole agreement illegal and the tribunal may apply the
Blue Pencil Rule to sewer the illegal aspect and enforce the contract. That
principle of law was formulated by the English court in a similar situation
in ALLION vs. SPICKERMANN (1976) C. H. pg. 58.
46
2.5 IMPACT OF LAND USE ACT 1978 ON THE
RELATIONSHIP OF LANDLORD AND TENANT
Before the Land Use Act, 1978, which came into force on 29 th March
1978, landowners in Nigeria enjoyed absolute title of the fee simple
estate. However, since the promulgation of the Land Use Act, all land
comprised in the territory of each state in the federation became vested in
the Governor of that state and such land is to be held in trust and
administered for the use and common benefit of all Nigerians.
Deemed granted refer to developed land (see 2 91), 5 and 34 of the Land
Use Act 1978, also OGUNLEYE vs. ONI (1990) 5 N.W.L.R part 152
page 745). And land can be developed not withstanding that it has no
roads, building and other features set out in section 50 (1) of the land use
Act, 1978. The question whether a land is developed depends in the fact
and surrounding circumstances of each case in OBIKOYA & SONS
LTD vs. GOVERNOR OF LAGOS STATE, where the economic use
47
and utilities placed on the land influence the court to decide that the land
in issue as developed.
Within our given context, the landlord would qualify as the holder of the
Right of Occupancy, either statutory or customary. It now seems that the
issuance of a certificate of occupancy to a landlord as evidenced of a
grant were a piece of land where a building is executed would operate as
a head and the landlord as the head lessor may grant a private lease to the
tenant. This was what happened in the case of AGUDA SAWA vs.
MOHAMMED (1974) N. R. W. L. R at 159 where the holder of a right
of occupancy allocated and building both houses erected there to operator
on payment of rent, and the court held that the grant created a lease and
therefore a relationship of landlord and tenant. A customary right of
occupancy takes priority over a statutory right of occupancy unless it was
previously revoked.
MERITS:
(1) Cheap Housing: In terms of cheap housing, Rent Control Edict
assist the tenants to any less for what he uses, the maximum rent
which is ceiling rent is normally less than full market value.
This makes it possible for tenants to enjoy a subsidized rent for
below the capital or market rental value.
(2) With the edict pegging the rate increases at 20% over a period
of three (3) years, there is likelihood of stability in rent
beginning with the sitting tenants.
48
(3) It helps the tenants to perform their obligation under the lease
agreement by carrying out repairs without wasting much time.
(4) People are able to build their own houses because of unforeseen
future
(5) The law protects the tenants more than the landlord though the
landlord’s title is left intact
DEMERITS
(1) The edict discourages investors from investing in residential
property in that the incentive of the developer would be killed,
whereas demand for residential accommodation continues to
rise i.e. the ability and incentive to develop is reduced and the
investors fail to maintain and put their property in good and
tenantable condition.
49
residential accommodation. More so, it constitutes effective
demand of houses for sale thereby artificially raising the sale
price.
(8) The edict leads people to circumvent the law in that most
people especially the potential tenant will be willing to pay
more to obtain an accommodation.
(10) The edict has not taken into consideration the economic
situation of the country. This makes the carrying out of repairs
50
difficult because the price of building materials has not been
taken into consideration i.e. management.
(12) It exempted some specific areas or locality from the edict; this
makes the landlords in such areas or localities to fix any
arbitrary rents i.e. giving preferential treatment to some people.
51
and continued economic effectiveness but inevitably there are
weaknesses.
Due to the belief and some others, members of tenants have resorted
(apart from recourse to the law courts and lawyers for assistance) to
other ways of checking the excesses of the landlords. One of such way
is holding the landlord to ransom by refusing to pay rent. This action
may tie down the expected return on the property, which may go for
other areas of investment.
52
or refuses to quit and deliver up possession of the premises or any part
thereof, the landlord of the said premises or his agent may cause the
person so neglecting or refusing to quit and deliver up possession to
be served with a written notice as inform signed by the landlord or his
agent, of the landlord’s intention to proceed to recover possession or a
date not less than seven days from the date of service.”
The rent control Edict led to the emergence of a black market because
the landlord no longer exposes their properties to the open market for
fear of being prosecuted.
This means there is continuous reduction in the number of dwelling
for letting as a result of the Edict.
53
The rent control edict has created a distribution on the property market
which led to under-valuation for official purpose, this reduce the
revenue to government from tenement rates, withholding taxes,
consent fee and either taxes on properties.
Rent control usually has the power to undermine the terms of the lease
agreement especially in favour of the tenant and this usually causes
friction between the landlords and their tenants. This is the why there
are endless litigations of aggrieved tenants or landlords taking the
other party to the tribunal.
The implication of this is that controls do not provide a conducive
environment under which the terms of the lease agreement can be
executed.
54
In the same view, the tribunals (especially the 1997 Edict) are given
the right to collect rents and confiscate rents on the landlord’s refusal
to collect them. They are also supposed to settle disputes between
landlords and tenants. All this appear to compete with the property
manager’s scope as some of his major functions are being performed
by the tribunals.
Despite the presence of these institutions, rent control in Nigeria faces significant challenges
related to inefficiency, inadequate funding, and corruption. This section explores the key
institutions involved in rent control, their roles, and the challenges they face in fulfilling their
mandates.
Rent tribunals are quasi-judicial bodies that play a central role in the adjudication of disputes
between landlords and tenants. They are typically established by state governments under
specific rent control laws, such as the Rent Control and Recovery of Residential Premises Law
(RCRRPL)**, which exists in various states.
1. Adjudicating Disputes: Rent tribunals are tasked with resolving disputes between landlords
and tenants, such as disagreements over rent increases, eviction notices, security deposits,
and the terms of tenancy agreements. These tribunals are designed to offer a quicker and
more accessible alternative to regular courts, which are often burdened by long delays.
2. Approving Rent Increases: One of the most important functions of rent tribunals is to
review and approve applications for rent increases submitted by landlords. According to
various state laws, landlords are required to seek approval from the tribunal before
increasing the rent beyond a certain threshold. The tribunal assesses factors such as
55
inflation, improvements made to the property, and local market conditions before
determining whether the rent increase is justified.
3. Enforcing Eviction Protections: Rent tribunals are also responsible for ensuring that
eviction protections under rent control laws are enforced. Landlords cannot evict tenants
without following due process, which typically requires obtaining an eviction order from a
tribunal or court. The tribunal examines whether the grounds for eviction are valid, such as
non-payment of rent or illegal use of the property.
While rent tribunals are a critical part of the institutional framework, they face several
challenges that limit their effectiveness:
Underfunding: Many rent tribunals in Nigeria operate with insufficient financial resources.
This affects their ability to process cases efficiently, leading to delays in the adjudication of
disputes. Without adequate funding, tribunals struggle to retain qualified personnel,
maintain facilities, and provide the necessary infrastructure for efficient operations.
Backlog of Cases: Rent tribunals, especially in states with high population densities such as
Lagos, face a significant backlog of cases. This backlog is compounded by the fact that
tenants and landlords often prefer to resolve disputes informally or outside the legal system
due to the perceived inefficiencies of the tribunal system. As a result, those who do use the
tribunals often face long waits before their cases are heard.
Limited Jurisdiction: Rent tribunals are typically limited in their jurisdiction to specific urban
areas where rent control laws are applicable. This leaves vast informal housing settlements
outside the reach of rent tribunals. In these areas, disputes are often settled through
informal community mechanisms, and tenants have little legal recourse in the event of
exploitation by landlords.
Corruption: Corruption within the rent tribunal system is another significant challenge.
Landlords, particularly those with considerable financial resources, may bribe tribunal
officials or exert influence to obtain favorable rulings. This undermines the credibility of the
tribunal system and perpetuates a cycle of injustice for tenants.
Each state in Nigeria has a State Housing Authority or a State Property Development
Authority**, which is responsible for regulating housing policies, including the development
and enforcement of rent control laws. These agencies often work in conjunction with the
ministries of housing and urban development to promote affordable housing and implement
rent control policies.
1. Policy Formulation: State Housing Authorities are involved in the formulation of policies
aimed at addressing housing shortages and ensuring that rental markets remain affordable.
This includes designing and implementing rent control laws, developing public housing
projects, and encouraging private sector participation in affordable housing.
56
2. Monitoring and Enforcement: These authorities are tasked with monitoring compliance
with rent control laws by landlords. They ensure that rent increases are within the legally
permissible limits, that tenants are not evicted unlawfully, and that landlords adhere to the
terms of tenancy agreements. In practice, however, enforcement often falls short due to
limited institutional capacity.
3. Public Housing Development: Some State Housing Authorities are directly involved in the
development of public housing projects aimed at providing affordable rental units for low-
income residents. These projects help alleviate some of the pressures on the private rental
market, though the scale of public housing development remains insufficient to meet
demand.
- Funding Constraints: Similar to rent tribunals, State Housing Authorities are often
underfunded, limiting their capacity to effectively monitor and enforce rent control laws.
Without adequate resources, these agencies struggle to conduct regular inspections, process
tenant complaints, and implement public housing projects.
- Limited Geographic Reach: In many cases, State Housing Authorities focus primarily on
urban centers, where formal housing markets are more prominent. This leaves informal
settlements, which house a large proportion of urban residents, outside the reach of these
authorities. Consequently, rent control laws are rarely enforced in these areas, leaving
tenants vulnerable to exploitation.
The Nigerian judiciary plays an integral role in the institutional framework for rent control by
interpreting and enforcing rent control laws. While rent tribunals are designed to handle
minor disputes, more complex cases involving rent control, tenancy agreements, and
property rights are brought before regular courts, including magistrate courts, high courts,
and the Court of Appeal.
1. Interpreting Rent Control Laws: Nigerian courts are responsible for interpreting the
provisions of rent control laws and determining their applicability in specific cases. Judges
review legislative intent, statutory language, and legal precedents to make rulings that clarify
the rights and obligations of landlords and tenants.
2. Adjudicating Complex Disputes: The judiciary handles complex disputes that go beyond
the jurisdiction of rent tribunals, including cases involving property rights, the
constitutionality of rent control laws, and conflicts between state and federal laws. For
57
example, high courts and appellate courts may be asked to rule on whether a specific rent
increase violates a tenant’s constitutional right to affordable housing.
3. Enforcing Court Orders: Courts play a crucial role in enforcing orders related to rent
control, such as eviction orders and rulings on rent increases. Once a court issues a
judgment, it is the responsibility of the landlord and tenant to comply with the ruling. In
cases where parties refuse to comply, the court may take further action, such as issuing
contempt orders or mandating enforcement through law enforcement agencies.
- Backlog of Cases: Nigerian courts, particularly at the lower levels, suffer from a significant
backlog of cases. This creates delays in the resolution of rent-related disputes, which can
have severe consequences for tenants facing eviction or landlords seeking rent arrears. The
slow pace of the judicial process undermines the effectiveness of rent control laws and
contributes to informal settlements of disputes.
- Limited Access to Justice: For many tenants, particularly those in informal housing
settlements, accessing the formal judicial system is costly and time-consuming. The lack of
affordable legal representation and the complexity of the legal process deter tenants from
seeking justice through the courts. In the absence of accessible legal mechanisms, many
disputes are resolved informally or remain unaddressed.
At both the federal and state levels, the **Ministry of Housing** plays a vital role in shaping
housing policy, including rent control regulations. The Ministry of Housing is responsible for
developing national and state-level strategies to address housing shortages, regulate rental
markets, and promote affordable housing initiatives.
1. Policy Development and Oversight: The Ministry is responsible for formulating housing
policies, including rent control legislation, that reflect the housing needs of the population. It
coordinates with state governments, housing authorities, and other relevant agencies to
ensure that housing policies are effectively implemented and enforced.
2. Public Housing Programs: The Ministry oversees public housing programs aimed at
providing affordable rental units to low- and middle-income families. By increasing the
supply of affordable housing, the Ministry helps to ease pressure on the private rental
market and reduce the need for stringent rent control measures.
3. Regulatory Oversight: The Ministry monitors compliance with national housing policies,
including rent control laws, and works to ensure that rental markets operate fairly and
transparently. This involves overseeing the activities of state housing authorities and
ensuring that landlords and tenants adhere to the legal framework governing
Local Government Authorities (LGAs) play a smaller but still significant role in the
institutional framework for rent control, particularly in urban areas. They are responsible for
58
the day-to-day administration of housing policies and, in some cases, assist in enforcing rent
control laws within their jurisdictions.
1. Issuing Tenancy Certificates: In some states, LGAs are responsible for issuing certificates of
tenancy, which formalize rental agreements between landlords and tenants. These
certificates provide legal recognition of tenancy agreements and ensure that tenants’ rights
are protected under the rent control laws.
2. Handling Tenant Complaints: LGAs may serve as a first point of contact for tenants who
experience issues with landlords. Complaints about rent increases, eviction notices, or
maintenance issues are often reported to LGAs, which then liaise with state housing
authorities or rent tribunals to resolve the disputes.
3. Enforcing Property Regulations: In addition to rent control, LGAs enforce property and
building regulations within their jurisdictions. This includes ensuring that rental properties
meet safety and health standards and that landlords comply with housing codes. When
properties are found to be substandard, LGAs have the authority to mandate repairs or even
declare properties uninhabitable.
While LGAs are important in the rent control framework, they face numerous challenges:
Lack of Resources: Many LGAs lack the financial and human resources necessary to
effectively monitor and enforce rent control regulations. Without adequate staffing or
funding, they struggle to respond to tenant complaints or conduct inspections of rental
properties.
- Limited Authority: In many cases, LGAs have limited authority over rental agreements and
disputes. While they can issue certificates of tenancy and enforce local property regulations,
they often lack the legal power to resolve complex rent control disputes, which must be
referred to state-level agencies or rent tribunals.
Civil Society Organizations (CSOs) and tenant advocacy groups play a crucial role in Nigeria’s
rent control institutional framework by representing the interests of tenants and working to
ensure that rent control laws are enforced equitably.
1. Legal Assistance: Many CSOs provide legal assistance to low-income tenants who are
unable to afford private legal representation. This includes offering advice on tenants’ rights
59
under rent control laws, representing tenants in rent tribunals or courts, and advocating for
reforms to improve tenant protections.
2. Public Awareness Campaigns: CSOs are active in educating tenants about their rights
under rent control laws. Through public awareness campaigns, they inform tenants of the
legal limits on rent increases, eviction protections, and how to seek redress through the
courts or rent tribunals. These efforts are especially important in informal settlements,
where tenants are often unaware of their rights.
3. Policy Advocacy: Tenant advocacy groups often engage in policy advocacy to push for
stronger tenant protections and the improvement of rent control laws. This includes lobbying
state governments to implement more effective enforcement mechanisms, calling for
increased funding for rent tribunals, and promoting the development of affordable housing.
- Limited Funding: Many CSOs operate on limited budgets, which restricts the scope of their
activities. Without sufficient funding, they are unable to provide legal assistance to all
tenants in need or conduct extensive public awareness campaigns.
- Hostile Political Environment: In some cases, tenant advocacy groups face resistance from
landlords, property developers, and even government officials who view their activities as
disruptive. This can lead to intimidation, harassment, or even legal action against these
groups, making it difficult for them to carry out their work effectively.
While rent control is primarily enforced through government institutions, the private sector,
particularly landlords and real estate developers, also plays a key role in the housing market
and in shaping the implementation of rent control policies.
1. Compliance with Rent Control Laws: Landlords are required to comply with rent control
regulations, including limits on rent increases, eviction procedures, and the maintenance of
rental properties. Compliance is often monitored by state housing authorities or LGAs, but in
practice, many landlords circumvent these laws due to weak enforcement.
2. Influencing Policy: Real estate developers and landlord associations often engage in policy
discussions with government officials regarding rent control laws. In some cases, they lobby
for more relaxed regulations or for the abolition of rent control altogether, arguing that it
discourages investment in the rental housing market.
60
The involvement of the private sector in rent control is often contentious, with several
challenges:
- Resistance to Regulation: Many landlords resist rent control laws, viewing them as overly
restrictive and harmful to their financial interests. This resistance can take the form of non-
compliance, legal challenges, or lobbying efforts to weaken or repeal rent control measures.
- Exploitation of Tenants: In areas where rent control enforcement is weak, some landlords
take advantage of tenants by imposing illegal rent increases, demanding excessive security
deposits, or evicting tenants without following due process. This is particularly common in
informal housing markets, where tenants have little legal protection.
The Federal Mortgage Bank of Nigeria (FMBN) is another important institution in Nigeria’s
housing sector. While the FMBN’s primary mandate is to provide mortgage financing for
homebuyers, its activities have a direct impact on the rental housing market and rent control
policies.
- Limited Reach: The FMBN’s activities are primarily focused on providing mortgage finance
to middle- and upper-income earners. As a result, its impact on the affordable rental housing
market is limited, and rent control laws remain necessary to protect lower-income tenants.
- Funding and Bureaucratic Challenges: The FMBN often faces delays in processing mortgage
applications and disbursing funds, which limits its ability to support the rapid development
of affordable housing. Without streamlined processes and increased funding, the FMBN’s
contribution to alleviating Nigeria’s housing crisis remains constrained.
Conclusion
The institutional framework for rent control in Nigeria is multifaceted, involving multiple
governmental bodies, tribunals, and private sector actors. Each of these institutions plays a
role in regulating the rental housing market, ensuring compliance with rent control laws, and
providing redress for tenants and landlords.
61
However, significant challenges remain. Many of these institutions, particularly rent tribunals
and state housing authorities, are underfunded and understaffed, leading to inefficiencies in
the enforcement of rent control laws. Corruption, limited jurisdiction, and the prevalence of
informal housing markets further complicate the implementation of rent control policies.
For rent control to be more effective, the institutional framework must be strengthened
through better funding, improved coordination between federal and state authorities, and
greater public awareness of tenants’ rights. In addition, reforms are needed to address the
exploitation of tenants in informal housing markets, where rent control laws are often not
enforced.
By addressing these challenges and strengthening the institutional framework, Nigeria can
better protect tenants, stabilize rental prices, and promote fair and affordable housing for all.
CHAPTER 4
This chapter explores the broader implications of rent control in Nigeria, followed by a
detailed discussion of the challenges that hinder the effective implementation of rent control
laws. The objective is to provide a balanced view of how rent control impacts tenants,
landlords, and the overall housing market, as well as the barriers to achieving its intended
outcomes.
Rent control laws, when effectively implemented, aim to protect tenants from unjustifiable
rent increases, ensure housing affordability, and foster a stable rental market. However,
these laws can have varied economic and social implications for both tenants and landlords,
as well as the broader housing market.
- Tenant Protection and Housing Affordability: One of the primary objectives of rent control
is to ensure that tenants, particularly low- and middle-income households, are not priced out
of urban areas. Rent control can make housing more affordable by limiting the frequency and
magnitude of rent increases, thus providing tenants with stability and protection against
arbitrary rent hikes.
- Reduced Displacement: By curbing rapid rent increases, rent control reduces the likelihood
of tenant displacement. This is especially significant in urban centers like Lagos and Abuja,
where rapid urbanization and demand for housing have driven up rental prices, often forcing
lower-income residents to move to peripheral areas with fewer opportunities and services.
62
- Effect on Landlords' Profits: On the other hand, rent control can reduce landlords' ability to
increase rent in line with inflation or property maintenance costs. Some landlords may feel
discouraged from investing in property improvements, fearing that they won’t be able to
recover their costs due to legal rent caps. This may lead to a gradual decline in the quality of
rental housing, particularly in cases where landlords cannot afford necessary repairs or
renovations.
- Impact on Investment in the Rental Market: A significant implication of rent control is its
potential to deter investment in the rental housing market. Investors may be reluctant to
build or expand rental properties if they perceive that rent control laws will limit their ability
to generate profits. This could further exacerbate the housing supply shortage in Nigeria's
urban centers.
- Black Market for Rentals: In some cases, stringent rent control policies can lead to the
creation of a "black market" for rental units, where landlords covertly charge higher rents
than what is legally allowed. This further erodes the effectiveness of rent control and may
lead to unfair exploitation of tenants.
- Market Distortion: Rent control can distort the rental market by creating a mismatch
between demand and supply. When rent prices are artificially suppressed, demand for rental
units may increase, but the supply of available rental housing may not keep pace, leading to
scarcity. This can result in long waiting lists for controlled rental units, while those without
access to these units may have to resort to less regulated (and often more expensive)
housing options.
In summary, the implications of rent control in Nigeria are complex and multifaceted,
affecting tenants' rights, landlords' profitability, and the overall housing market. While the
intent is to safeguard tenants and ensure affordability, there are unintended consequences
that could hinder its long-term effectiveness.
Despite its potential benefits, rent control in Nigeria faces numerous challenges that limit its
effectiveness. These challenges span legal, institutional, economic, and social dimensions.
One of the primary challenges to rent control in Nigeria is the weakness of the legal
framework governing the rental housing market. While several states have enacted rent
control laws, these regulations vary significantly from state to state, leading to a lack of
consistency in how rent control is applied.
63
- Inadequate Legislation: Some states have rent control laws that are either outdated or
poorly drafted, with loopholes that landlords can exploit to circumvent rent regulations. The
legal provisions often fail to specify clear mechanisms for monitoring compliance or for
setting enforceable limits on rent increases.
- Inconsistent Application: Even in states with more robust rent control laws, enforcement
remains a significant issue. The lack of uniformity in rent control laws across Nigeria has
created a patchwork of regulations, where tenants in some regions are more protected than
others. This inconsistency undermines the broader objectives of rent control.
The effectiveness of rent control is heavily dependent on the strength of the institutions
tasked with implementing and enforcing the laws. In Nigeria, these institutions face a range
of challenges:
- Insufficient Funding and Resources: Rent tribunals and state housing authorities often lack
the financial resources, staffing, and training required to enforce rent control laws effectively.
This resource constraint hinders their ability to conduct regular inspections, respond to
tenant complaints, and process cases efficiently.
- Corruption: Corruption within enforcement bodies poses a significant challenge. In some
cases, landlords may bribe officials to avoid penalties for violating rent control regulations.
This corruption diminishes the credibility of rent control institutions and leaves tenants
vulnerable to exploitation.
- Overloaded Judicial System: Many rent disputes are resolved in courts or specialized rent
tribunals. However, Nigeria’s judicial system is often overburdened with a backlog of cases,
leading to delays in resolving rent disputes. This lack of timely justice discourages tenants
from seeking legal recourse, as they fear long delays and costly legal processes.
The economic realities of Nigeria further complicate the implementation of rent control laws.
The country's housing market is characterized by high demand and limited supply, creating
conditions in which rent control laws are difficult to enforce.
- Housing Shortage: Nigeria faces a significant housing deficit, particularly in urban areas.
The demand for rental properties far outstrips supply, which puts upward pressure on rents.
Landlords, aware of this high demand, often flout rent control laws, knowing that tenants
have limited alternatives.
- Inflation and Cost of Living: With Nigeria experiencing periodic inflation and rising costs of
living, landlords argue that rent control laws prevent them from adjusting rent to reflect
economic conditions. This conflict between protecting tenants and allowing landlords to
maintain a sustainable income from their properties presents an ongoing challenge for rent
control policies.
Many tenants and even some landlords in Nigeria are unaware of the existence of rent
control laws or the specific protections they afford. This lack of awareness limits the
effectiveness of rent control in the following ways:
- Tenant Vulnerability: Tenants who are unaware of their rights under rent control laws are
more likely to be exploited by landlords. Landlords may impose illegal rent hikes, demand
64
exorbitant advance payments, or engage in unlawful evictions, knowing that tenants are
unlikely to challenge these actions due to their lack of knowledge.
- Insufficient Legal Support: Many low-income tenants cannot afford legal representation or
advice. Without adequate support, these tenants are left with little recourse when landlords
violate rent control regulations. Civil society organizations and tenant advocacy groups,
which could provide assistance, are often underfunded and understaffed, limiting their
ability to fill this gap.
A significant portion of Nigeria’s housing market operates outside the formal regulatory
framework, particularly in informal settlements and slums where rent control laws are
seldom enforced.
- Informal Tenancy Agreements: In many informal housing markets, rental agreements are
verbal and undocumented. These informal arrangements make it difficult to enforce rent
control laws, as there is no official record of the agreed rent or terms of the tenancy.
- Lack of Oversight: Informal settlements are often beyond the reach of state authorities,
making it difficult to monitor and regulate rental practices in these areas. This lack of
oversight allows landlords in informal markets to operate with impunity, charging exorbitant
rents or evicting tenants without notice.
Rent control is often met with resistance from landlords and real estate developers, who
argue that such regulations distort the housing market and discourage investment in rental
properties.
- Lobbying by Landlords and Developers: Landlords and property developers often lobby
against rent control laws, claiming that these regulations reduce their profit margins and
deter investment in new housing. In some cases, this political pressure leads to the
weakening or repeal of rent control laws.
- Landlord Non-Compliance: Even when rent control laws are in place, landlords may refuse
to comply, knowing that enforcement is weak. This non-compliance, coupled with
inadequate penalties for violations, undermines the goals of rent control and leaves tenants
unprotected.
The process of enforcing rent control laws in Nigeria is often bogged down by bureaucracy.
Government agencies responsible for housing and rent control are frequently slow in
responding to complaints and processing cases.
- Delays in Dispute Resolution: Tenants seeking to resolve disputes over rent increases or
illegal evictions often face long delays in getting their cases heard, due to the bureaucratic
inefficiencies in rent tribunals and courts.
- Administrative Barriers: The complexity of navigating Nigeria’s legal and administrative
systems can discourage tenants from pursuing legal action against landlords, even when they
have a valid case. These barriers further weaken the enforcement of rent control laws.
65
CHAPTER FIVE
5: 1: SUMMARY
66
to deteriorate simply because they were not being maintained, thereby
lives of the tenants are endangered, thus reduction in the useful of this
buildings too.
5:2: RECOMMENDATION
67
Thus, the cut throat rents must be checked and at the same time
improving landlord and tenants relations hip. The following
recommendations are made:
68
10. Also an association of local landlords and tenants can be
encouraged where matters affecting them can be ironed out,
thereby creating a better relationship between landlords and
tenants.
11. In the case of rent control, any standard rent to be fixed should take
account of the age of the building, standard of development and its
maintenance, including the state of repairs.
12. Section 4 of the 1997 edict should be reviewed to address the case
of advance rent in view of the high cost of management and
administration of tenancies as well as the low purchasing power of
the naira.
13. Claims should be allowed for the recovery of cost of repairs and
the time it will take to carry-out such repairs in action of
possessions. This being the case of building materials is not
negligible neither is the time value of money to be
discountenanced. Similarly, outstanding bills (NEPA), tenement
rates, water rates, telephone bills where applicable, consumed by
tenants should be recoverable in the same action.
All these services are billed on the consumer at a particular
location and the bill will continue to accumulate against that residential
unit notwithstanding the fact that the tenant had left.
69
BIBLIOGRAPHY/REFERENCES
70
Being a project submitted to Dept. of Estate Management 1995/96
session.
11. RENT CONTROL AND RECOVERY OF RESIDENTIAL
PREMISES EDICT NO 6 OF 1997
12. THE IMPACT OF RENT CONTROL ON THE MANAGEMENT
OF RESIDENTIAL PROPERTIES BY ITUA, O.M. (1998) being
a B.Sc. dissertation submitted to the Department of Estate
Management, University of Lagos.
13. STANDARDISATION OF RENT; THE ECONOMIC
IMPLICATIONS by OMIRIN M.M. (1998) being a paper
delivered at a Workshop/ Seminar organized by the Faculty of
Law, University of Lagos.
14. THE GUARDIAN, Monday April 7, 1997 (pg. 9 and 27)
15. THE RENT EDICT OF LAGOS STATE BY UTUAMA A.A.
(1998) being a paper delivered at a Seminar / Seminar organized by
The Faculty of Law, University of Lagos.
16. LANDLORD AND TENANT RELATIONSHIP: PROBLEMS,
PROSPECTS AND SOLUTION by OLULANA O.O. & others
(1993) being a dissertation submitted to the Department of Estate
Management, YABA COLLEGE OF TECHNOLOGY.
17. THE MERIT AND DEMERIT OF Lagos STATE RENT
CONTROL AND RECOVERY OF RESIDENTIAL PREMISES
EDICT NO 6 of 1997 by KADARA A. O. 1998 being a
dissertation submitted to the Department of estate management
YABA COLLEGE OF TECHNOLOGY.
18. EFFECT OF THE LAGOS STATE RENT CONTROL AND
RECOVERY OF RESIDENTIAL PREMISES EDICT NO.6, 1997
ON LANDLORD AND TENANT RELATIONSHIP IN
SHOMOLU BARIGA AREAS by AZEEZ, S. A. 1999 being a
71
dissertation submitted to the Department of estate management,
UNIVERSITY OF LAGOS.
19. Robert E. Megarry and H.W.R. Wade, The. Law of Real Property (London:
Stevens, 1975),
72