Lagos Government Predicts Nigeria’s Housing Deficit May Hit 28 Million Units, Unveils New Tenancy Bill to Regulate Rent Hike

The Lagos State Government has raised an urgent alarm over Nigeria’s deepening housing crisis, warning that the country’s effective housing deficit could soar to nearly 28 million units in the coming years if immediate interventions are not sustained. The warning was issued by the Commissioner for Housing, Moruf Akinderu-Fatai, during the 2026 Ministerial Press Briefing marking the third year of Governor Babajide Sanwo-Olu’s second term in office.

Commissioner Akinderu-Fatai explained that findings by the National Housing Data Technical Committee put Nigeria’s official housing deficit at 14.925 million units. He noted that the situation is far more severe because an additional 15.2 million homes nationwide have been identified as structurally defective or substandard. “The growing deficit poses serious threats to urban development, economic growth, and social stability,” Akinderu-Fatai warned, adding that Lagos remains the epicentre of the crisis with an estimated shortage of over 3.3 million units.

In a major move to protect tenants from exploitation, the government also unveiled a new tenancy bill currently before the Lagos State House of Assembly. The proposed legislation aims to curb arbitrary rent increases, illegal charges, and fraudulent practices by estate agents. “The new tenancy bill will address abnormal rental increment, illegal charges and dues,” Akinderu-Fatai stated, confirming that the bill has already reached the committee stage.

A key provision of the proposed law makes it mandatory for all estate agents operating in Lagos to register with the Lagos State Real Estate Regulatory Authority. Operating without registration will become a criminal offence once the bill is passed. Akinderu-Fatai said the move is aimed at tackling the activities of unregistered agents who exploit tenants through excessive fees and fraudulent transactions. He revealed that LASRERA has already recovered over N270 million from fake operators between 2025 and 2026.

The bill also seeks to establish clear rent payment guidelines. According to the commissioner, the government is working to introduce monthly and quarterly rent payment systems to ease the financial burden of annual rent on low-income earners. He explained that the proposed law would strictly prohibit landlords from demanding more than one year’s rent upfront from new tenants and cap advance rent for existing tenants at three months. The government has consistently maintained that estate agency fees in Lagos should not exceed 10 per cent of the total rent payable, with some reports indicating a push to reduce this to five per cent.

To speed up tenancy dispute resolutions, the bill proposes allowing courts to sit on weekends and public holidays for matters connected to rent and housing disputes. Tenants seeking legal action against landlords would be required to provide proof of rent payments and updated utility bills before initiating court proceedings.

Despite the grim deficit figures, Akinderu-Fatai highlighted progress made by the Sanwo-Olu administration, revealing that the state has delivered 10,623 high-quality affordable homes over the past seven years. He said the government is on track to scale total delivery to 14,022 units before the end of the year through ongoing projects in Sangotedo, Egan-Igando, Ibeshe, Epe and Ipaja. “The administration remains focused on making housing transactions easier, safer and more affordable for residents and investors in the state,” the commissioner said.