How agency fees are charged
When an agent shows you a flat and you agree to take it, the agent asks for an agency fee before you get the keys. It is usually paid at the same time as the rent, the legal fee and the caution fee, which is why the first payment on a Nigerian rental is much bigger than the rent alone.
The fee is a percentage of the yearly rent, not of the total you pay. If you pay rent for a longer period upfront, ask whether the fee is worked out on the yearly rent or on the full amount, because some agents charge on everything.
What the law says now (Lagos). The Tenancy Law of Lagos State 2011 does not set a percentage for agency fees. It does say that whoever engages a professional in respect of the tenancy agreement pays that professional. That clearly covers the lawyer, and it is often read to cover agents too. In practice, across Lagos, the tenant pays.
What the regulator says. The Lagos State Real Estate Regulatory Authority (LASRERA), set up under a 2022 law, registers agents and takes complaints. Its head has said publicly that agency fees must stay within a government-approved range, and that charging above it is professional misconduct. That range is a regulator position, not a figure written in the 2011 Tenancy Law. See the figures box for the range and its sources.
What may change. The Lagos State Tenancy and Recovery of Premises Bill 2025 would set a lower cap on agent commission and make unregistered agency an offence. It is not law yet (see the box below).
Differences by state
- Lagos: the regulator's range applies to registered agents across the state. The 2011 Tenancy Law does not cover Apapa, Ikeja GRA, Ikoyi and Victoria Island, but LASRERA registration covers the whole state.
- Abuja (FCT): we found no law or regulation that caps agency fees. Fees are agreed between you and the agent.
- Other states: we found no state-wide cap in the sources we checked. Ask for the fee in writing before you inspect.
What to check
- The agent's LASRERA registration, if the property is in Lagos.
- That the fee is stated in writing, with the base it is calculated on (the yearly rent, or the full amount paid upfront).
- That only one agent is charging you. Several agents sharing a listing sometimes each ask for a cut.
- A receipt with the agent's name, company and the amount, separate from the rent receipt.
- Whether the landlord appointed the agent. If so, ask who the law expects to pay.
Red flags
- Being asked to pay before you have seen the property or met the landlord.
- An "agency and agreement" fee quoted as one lump sum with no breakdown.
- An agent who refuses to give a receipt or a company name.
- Extra charges on top, such as an inspection fee, a form fee or a finder's fee.
- An agent who cannot show you the landlord's name or proof that the landlord authorised the letting.
Typical cost or timeline
Agency fee range stated by LASRERA (Lagos regulator position, not in the 2011 Tenancy Law)
0–10 % of one year's rent
As of October 2026
Sources differ
SOURCE 1
The Tenancy Law of Lagos State 2011 sets no percentage limit on agency fees; it says the party who engages a professional in respect of the tenancy agreement pays that professional.
Lagos State Government (via Policy Vault Africa)
2011
SOURCE 2
Lagos officials say agency fees must stay within a range of 0 to 10% of annual rent, and that charging more is professional misconduct.
2025
Proposed, not yet law
The Lagos State Tenancy and Recovery of Premises Bill 2025 would cap an agent's commission at 5% of one year's rent, require agents to be registered with LASRERA, and punish breaches with refunds, fines of up to ₦1 million and/or up to 2 years in prison.
Status: passed second reading on 10 July 2025 and referred to the House Committee on Housing; reported at committee stage in May 2026 and still pending in September 2026. No third reading or governor's assent reported (confirmed 13 October 2026).
Agency fee vs Legal fee
| Aspect | Agency fee | Legal fee |
|---|---|---|
| What it pays for | Finding and letting the property | Preparing or checking the tenancy agreement |
| Who receives it | The estate agent | The lawyer who drafts the agreement |
| Who usually pays in practice | The incoming tenant | The incoming tenant |
| Who the 2011 Lagos law says pays | Whoever engaged them for the tenancy agreement (often read to cover agents) | Whoever engaged the lawyer |
| Refunded at the end | No | No |
Find property
- Flats for rent in Lagos
- Flats for rent in Abuja
- Houses for rent in Ogun
- The New Lagos Tenancy Law in Detail
Questions
How much is agency fee in Lagos?
There is no figure in the 2011 Tenancy Law. Lagos officials have stated a range that registered agents must stay within; the figures box shows it with its sources and date. Anything above that range can be reported to LASRERA.
Is the new agency fee cap now law in Lagos?
No. The lower cap is in the Lagos State Tenancy and Recovery of Premises Bill 2025, which is still before the Lagos House of Assembly. Until it is passed and signed, it is a proposal, not law.
Who should pay the agency fee, the landlord or the tenant?
The 2011 Lagos law says whoever engages a professional for the tenancy agreement pays them, which is often read to cover agents. In practice tenants pay almost every time. If the landlord appointed the agent, you can raise this before you agree, but expect most agents to insist.
Is agency fee refundable?
No. It pays for the agent's work in finding the property, so it is not returned when the tenancy ends. Unlike a caution fee, you should not expect it back.
Do I pay agency fee again when I renew my rent?
Normally no. An agency fee is for letting the property to you. If an agent asks for a fresh fee at renewal, ask what new service it covers.
Related terms
Sources
- 1. Tenancy Law of Lagos State 2011 (Law No. 14 of 2011), Official Gazette No. 37 Vol. 44 Lagos State Government (via Policy Vault Africa) · checked 13 October 2026
- 2. Lagos govt goes after unregistered real estate agents (7 Jul 2025) Ripples Nigeria · checked 13 October 2026
- 3. Lagos insists tenancy agreement, commission fees remain 10% of annual rent (15 May 2025) Business Post Nigeria · checked 13 October 2026
- 4. Sanwo-Olu warns agents, landlords against tenancy agreement fee above 10% Gazette Nigeria · checked 13 October 2026
- 5. An overview of the Lagos State Real Estate Regulatory Authority Law 2022 (18 Apr 2022) Mondaq · checked 13 October 2026
- 6. Lagos State Tenancy and Recovery of Premises Bill 2025 (draft) Lagos State House of Assembly · checked 13 October 2026
- 7. A review of the Lagos State Tenancy and Recovery of Premises Bill 2025 (Eunice Jatau, The Trusted Advisors, 4 Sep 2025) Mondaq · checked 13 October 2026
- 8. New Lagos tenancy rules: what the bill says about 3-month rent, 5% agency fees and illegal eviction (9 Sep 2026) WithinNigeria · checked 13 October 2026
- 9. 10 things Lagosians should know about the Lagos Tenancy Law LawPadi · checked 13 October 2026
Cite this definition
"Agency fee", Nigeria Property Centre Property Glossary, last checked 13 October 2026, https://nigeriapropertycentre.com/glossary/agency-fee
You may reuse this definition under CC BY 4.0 with credit to Nigeria Property Centre and a link to this page.
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