Lagos Cracks Down On Unscrupulous Estate Agents Amid Rising Rent Complaints.
The Lagos State Real Estate Regulatory Authority (LASRERA) is intensifying efforts to curb unprofessional practices in the real estate sector, as residents protest exorbitant fees and arbitrary rent hikes by rogue estate agents. Despite LASRERA’s success in registering practitioners and enforcing compliance, eliminating touts and unethical conduct remains a challenge.
In a joint statement, Lagos State Commissioner for Housing Moruf Akinderu-Fatai and Special Adviser on Housing Barakat Odunuga-Bakare urged professional bodies, including the Association of Estate Agents in Nigeria (AEAN) and the Estate, Rent & Commission Agents Association of Nigeria (ERCAAN), to address public grievances. The government highlighted that unchecked practices, such as unwarranted inspection fees and inflated agency charges, violate the Lagos State Real Estate Transaction Law, contributing to rising rent defaults.
Protests have erupted across Lagos, with residents decrying the financial strain imposed by unprofessional agents. Housing advocates are calling for urgent reforms, including a licensing body for estate agents, standardised fees, and a tenant grievance mechanism. Experts warn that without intervention, Nigeria’s urban housing crisis could worsen, particularly for low- and middle-income earners.
Sam Eboigbe, past chairman of the Faculty of Estate Agency and Marketing Professional Group within the Nigerian Institution of Estate Surveyors and Valuers (NIESV), clarified that those imposing excessive charges are not NIESV members. “Talk of inspection or finders’ fees, or 20 per cent agency charges, is alien to our practice. Our approved fee remains 10 per cent,” Eboigbe told The Guardian. He urged the public to engage registered professionals to avoid exploitation.
On the contentious issue of caution fees, Eboigbe explained that these are refundable deposits to protect landlords from property damage, not income for agents or owners. “If the government deems such fees unlawful, professionals will comply,” he said, emphasising that trained practitioners adhere to ethical standards.
Gbenga Ismail, Vice Chairman of AEAN, echoed Eboigbe’s sentiments, attributing arbitrary charges to unregulated commission agents operating in low-income areas. “Our ceiling is 10 per cent, and inspection fees are baseless. These agents incur costs from multiple inspections and resort to self-help,” Ismail said. He advocated for government-led awareness campaigns and public reporting mechanisms to expose infractions.
Ademola Makanjuola, past Public Relations Officer of ERCAAN, stressed that their members uphold discipline, unlike unregistered splinter groups. “Quacks outnumber registered agents, making it hard to curb their activities,” he admitted. Makanjuola praised LASRERA but noted that many operators evade registration. He urged the public to patronise only registered agents and called on other states to emulate Lagos’ regulatory model.
As Lagos grapples with its housing challenges, stakeholders agree that stronger enforcement, public education, and collaboration between government and professional bodies are critical to restoring trust in the real estate sector.
