A tenant who has occupied a property for several years can understandably expect to remain in the property when the tenancy expires, particularly where rent has always been paid promptly and the tenant has complied with the terms of the tenancy agreement.
However, a tenant does not automatically acquire a right to renew a tenancy simply because the tenant has been a good tenant or has occupied the property for a long period.
The starting point is the tenancy agreement.
If the agreement gives the tenant an option or right to renew, the landlord’s refusal to renew can raise a contractual issue. If there is no such provision, the landlord is generally not required to grant a new tenancy merely because the tenant wants to remain in the property.
The position also differs depending on whether the existing tenancy is a fixed-term tenancy, a periodic tenancy, or a tenancy that has already expired.
This article explains what a tenant should do when a landlord refuses to renew a tenancy agreement in Nigeria, with particular attention to the legal position in Lagos State.
Does a Tenant Have an Automatic Right to Renew a Tenancy?
No.
The expiration of a tenancy does not automatically give the tenant a right to another term.
A tenancy is a contractual relationship. Where the agreed term expires, the tenant’s contractual right to occupy the premises ordinarily comes to an end unless:
- the tenancy agreement provides for renewal;
- the parties enter into a new agreement;
- the tenant validly exercises an existing option to renew; or
- the conduct of the parties creates a new tenancy or other legally recognised relationship.
The Court of Appeal has recognised this principle in Oteri Holdings Ltd v. Heritage Banking Company Ltd (2020) LPELR-50802(CA), where a tenant sought to continue occupying premises after the expiration of a fixed-term lease containing an option to renew. The court emphasised that the tenant’s intention to renew did not itself create a renewed tenancy.
Therefore, a tenant should not assume that a landlord is legally required to renew simply because the tenant has occupied the property for many years.
What Is an Option to Renew?
An option to renew is a contractual provision giving a tenant a right to seek or obtain a further term in accordance with the conditions stipulated in the tenancy agreement.
The precise wording of the clause is critical.
For example, an agreement might provide:
“The tenant shall have an option to renew the tenancy for a further term of three years.”
Another agreement might state:
“The landlord shall grant the tenant a further term upon written notice given three months before expiration, subject to the tenant complying with the terms of the tenancy.”
These clauses do not necessarily produce identical legal consequences.
The court will examine the actual agreement to determine what rights the parties created.
Can a Landlord Refuse to Renew Where the Tenant Has an Option to Renew?
Not necessarily.
Where the tenancy agreement contains a valid option to renew, the landlord’s ability to refuse renewal depends on the wording and conditions of the option.
The tenant must first determine:
- whether the agreement actually grants an option to renew;
- when the option must be exercised;
- how the option must be exercised;
- whether written notice is required;
- whether the tenant must give notice within a specified period;
- whether payment of rent must be up to date;
- whether compliance with other covenants is a condition of renewal;
- whether the new rent is predetermined or subject to negotiation; and
- whether the landlord’s consent is required.
The courts have repeatedly held that a tenant seeking to exercise an option to renew must comply with the conditions governing its exercise. In Oteri Holdings Ltd v. Heritage Banking Company Ltd, the Court of Appeal relied on the Supreme Court decision in Conoil Plc v. Dutse (2016) LPELR-40236(SC) and other authorities on the strict compliance required for exercising an option to renew.
What If the Tenancy Agreement Does Not Contain a Renewal Clause?
Where the tenancy agreement contains no right or option to renew, the tenant generally cannot compel the landlord to enter into a fresh tenancy simply because the tenant wishes to remain.
The landlord can decide not to grant a new tenancy, subject to the applicable law governing the termination and recovery of possession.
The tenant’s proper response is therefore not to insist that the landlord must renew the agreement, but to determine:
- whether the existing tenancy has expired;
- whether the landlord has complied with the applicable notice requirements;
- whether the tenant has any contractual right to renewal; and
- whether any other legal circumstances protect the tenant’s continued possession.
Can a Landlord Refuse Renewal Because the Tenant Is in Rent Arrears?
Yes.
Where the tenancy agreement makes compliance with the tenant’s obligations a condition of renewal, substantial arrears or other breaches can affect the tenant’s ability to exercise an option to renew.
This was an important consideration in Oteri Holdings Ltd v. Heritage Banking Company Ltd, where the tenant sought to continue in possession but had outstanding obligations. The court considered the contractual conditions governing renewal and the tenant’s failure to establish a valid renewal.
A tenant who wants to rely on an option to renew should therefore ensure that all conditions attached to the option have been satisfied.
What If the Tenant Has Always Paid Rent on Time?
Regular payment of rent is important, but it does not by itself create a permanent right to renewal.
A tenant who has paid rent regularly for ten or twenty years does not automatically acquire a right to another tenancy merely because of that history.
The question remains whether the tenant has a contractual or statutory right to continue in possession.
A good tenancy record can, however, be relevant to negotiations with the landlord and to the circumstances of a dispute.
What If There Is No Written Tenancy Agreement?
The absence of a written tenancy agreement does not mean that there is no tenancy or that the parties have no legally enforceable rights and obligations.
Under Section 3 of the Lagos State Tenancy Law 2011, a tenancy agreement is deemed to exist where premises are granted by a landlord to a person for value, whether the agreement is express or implied, oral or written, or partly oral and partly written.
Therefore, a tenant who occupies premises pursuant to an oral agreement can still have a valid tenancy. The terms of the tenancy can be established from the agreement between the parties, their conduct, payment of rent, receipts issued, correspondence and other relevant evidence.
Does an Implied Tenancy Include an Implied Right to Renew?
Not automatically.
There is an important distinction between an implied tenancy and an implied right of renewal.
The fact that the law recognises an implied tenancy does not mean that it gives every tenant an automatic right to demand a fresh tenancy when the existing term expires.
The Lagos State Tenancy Law recognises implied tenancies and imposes statutory rights and obligations on landlords and tenants, but it does not create a general statutory right for every tenant to renew an expired tenancy.
A tenant seeking to establish a right to renewal must therefore identify the legal basis for that right. It can arise from an express renewal clause, an option to renew, a subsequent agreement between the parties, or conduct from which a new tenancy can properly be inferred.
Can a New Tenancy Arise by the Conduct of the Parties?
Yes.
Although there may be no written renewal agreement, the conduct of the landlord and tenant can become relevant in determining whether a new tenancy has arisen.
For example, if a fixed term expires but the landlord knowingly continues to accept rent from the tenant and the parties conduct themselves as landlord and tenant under a continuing arrangement, the circumstances may establish a new tenancy or other legally recognisable arrangement.
However, acceptance of money after expiration does not, in every case, automatically amount to renewal. The court will examine the circumstances surrounding the payment, the intention and conduct of the parties, the period covered by the payment and the evidence as a whole.
The important point is therefore that an implied tenancy can arise from the circumstances, but a tenant should not equate the existence of an implied tenancy with an automatic perpetual right to renew.
What If the Tenant Has Occupied the Property for Many Years?
Length of occupation alone does not create an automatic right of renewal.
A tenant may have occupied premises for five, ten or twenty years under successive oral arrangements without acquiring a permanent right to compel the landlord to grant another term.
What matters is the legal nature of the tenancy that existed during the period of occupation and what the evidence establishes concerning any subsequent agreement or renewal.
Accordingly, where there is no written tenancy agreement, both parties should preserve evidence of their dealings, including rent receipts, bank transfers, correspondence, text messages, emails and other documents showing the terms upon which the premises were occupied.
Can a Landlord Increase the Rent Instead of Refusing Renewal?
Yes, the landlord and tenant can negotiate the rent applicable to a renewed tenancy, subject to the applicable law and the terms of the existing agreement.
In commercial leases, it is common for a renewal clause to provide that the rent for the renewed term will be determined by agreement or by reference to prevailing market rent.
The renewal clause should therefore be examined carefully where the landlord says:
“I will renew, but only at the new rent.”
The issue may not be whether the landlord can increase the rent, but whether the landlord is contractually entitled to impose the proposed rent as a condition of renewal.
Where the renewal clause provides a mechanism for determining the new rent, that mechanism should be followed.
Can a Landlord Refuse Renewal Because the Landlord Wants to Sell the Property?
A landlord can generally decide not to enter into a new tenancy where there is no contractual obligation to renew.
However, the landlord cannot simply use the proposed sale of the property as an excuse to bypass the legal procedure for recovering possession from a tenant whose existing tenancy has not been properly determined.
If the existing tenancy remains valid, the landlord must comply with the applicable law before recovering possession.
The tenant’s right to remain in possession during the existing tenancy is distinct from the question of whether the landlord must offer another tenancy after its expiry.
What If the Landlord Refuses to Renew Before the Tenancy Expires?
A landlord can inform a tenant that the landlord does not intend to renew the tenancy.
The tenant should then determine whether the communication is:
- merely a notice that there will be no renewal;
- a valid notice terminating a periodic tenancy;
- a notice to quit; or
- a contractual notice under the tenancy agreement.
These are not necessarily the same thing.
A statement such as “I will not renew your tenancy” does not automatically satisfy every statutory requirement for recovery of possession.
Whether the tenant must vacate and when the tenant must vacate depend on the nature of the existing tenancy and the applicable law.
Does a Landlord Have to Give Notice If the Tenancy Is Not Being Renewed?
This depends on the nature of the tenancy.
Where a fixed-term tenancy expires on the agreed expiration date, the tenancy can determine by effluxion of time. Under Section 13(5) of the Lagos State Tenancy Law 2011, no notice to quit is required where a tenancy for a fixed term certain has been determined by effluxion of time. However, where the tenant remains in possession and the landlord intends to commence recovery proceedings, the statutory procedure for recovery of possession must still be followed, including the prescribed notice of intention to recover possession.
This is different from a periodic tenancy where a notice to quit is ordinarily required to determine the tenancy.
Therefore, a tenant should not assume that every refusal to renew requires the landlord to serve six months’ notice.
The applicable notice depends on the nature of the tenancy and the governing law.
What Should a Tenant Do When the Landlord Refuses to Renew?
A tenant should take the following steps.
1. Read the Tenancy Agreement
The first step is to examine the agreement carefully.
Look specifically for provisions dealing with:
- renewal;
- option to renew;
- notice of renewal;
- termination;
- rent review;
- breach;
- notice periods; and
- what happens when the tenancy expires.
2. Check Whether There Is an Option to Renew
If there is a renewal clause, determine precisely what it requires.
Do not rely on a general statement that the tenant has “the right to renew.”
The exact wording matters.
3. Check the Deadline for Exercising the Option
Some agreements require the tenant to notify the landlord several months before expiration.
Failure to comply with the stipulated deadline can affect the tenant’s ability to rely on the option.
The Court of Appeal has stated that a tenant wishing to exercise an option to renew must conform with the conditions stipulated in the lease.
4. Put the Renewal Request in Writing
If the tenant wants to remain in the premises, the tenant should communicate the intention to renew in writing.
The letter should refer to the relevant renewal clause where one exists.
This creates a documentary record of the tenant’s position.
5. Resolve Any Outstanding Breach
If the landlord’s objection is based on rent arrears or another breach, the tenant should determine whether the allegation is correct and, where appropriate, rectify the breach.
6. Do Not Remain in Possession Indefinitely Without Legal Advice
If the landlord has clearly refused renewal and the tenancy has expired, the tenant should not assume that continued occupation automatically creates a new tenancy.
Continued occupation can expose the tenant to claims for mesne profits or compensation for use and occupation, depending on the circumstances.
Can a Tenant Sue the Landlord for Refusing to Renew?
Yes, where the tenant has a legally enforceable right to renewal or another contractual right that the landlord has breached.
A tenant cannot successfully sue merely because the tenant would prefer to remain in the property.
The tenant must establish a legal basis for the claim.
For example, a claim becomes substantially different where the tenancy agreement contains an enforceable option to renew and the tenant has complied with all conditions for exercising that option.
The Supreme Court has recognised that an option to renew can have contractual consequences. In Ezenwa v. Oko & Ors (2008) LPELR-1206(SC), the Supreme Court considered an option to renew as an offer capable of becoming an enforceable contract upon acceptance.
The precise wording of the agreement and the conduct of both parties therefore remain critical.
Can the Court Force a Landlord to Renew the Tenancy?
In an appropriate case, a court can grant relief where a landlord has breached an enforceable contractual obligation.
The availability of specific performance or another remedy depends on the nature of the contractual obligation and the circumstances of the case.
A tenant therefore needs more than evidence that the landlord previously promised verbally to renew.
The tenant should be able to establish a legally enforceable obligation.
Where the agreement contains a clear renewal mechanism and the tenant has properly exercised the option, the tenant’s position is considerably stronger than where the agreement merely states that the parties “may agree” to renew.
What If the Landlord Accepted Rent After the Tenancy Expired?
This situation requires careful examination.
Acceptance of rent after the expiration of a tenancy can have legal consequences, depending on the circumstances, the period covered by the payment, the parties’ communications and the applicable law.
A tenant should not automatically conclude that acceptance of money means the landlord has renewed the tenancy.
Likewise, a landlord should not assume that accepting money after the tenancy has expired is legally irrelevant.
Where there is a dispute, the court will examine the evidence and the conduct of the parties.
This is particularly important where the landlord accepts payment while simultaneously insisting that the tenant must vacate.
Can a Landlord Refuse Renewal and Still Accept Rent?
This depends on the circumstances and the nature of the payment.
For example, a landlord may receive money representing arrears or compensation for use and occupation without intending to create a fresh tenancy.
The description and purpose of the payment therefore matter.
Both landlords and tenants should keep clear written records identifying:
- the amount paid;
- the period covered;
- the purpose of the payment; and
- whether the payment is being accepted as rent under a renewed tenancy or for another purpose.
What Happens If the Tenant Refuses to Leave After the Tenancy Expires?
If the tenancy has expired and the tenant refuses to surrender possession, the landlord must follow the applicable legal procedure for recovering possession.
The landlord should not resort to self-help by:
- changing the locks;
- removing the tenant’s belongings;
- disconnecting utilities;
- using force;
- threatening the tenant; or
- employing persons to physically remove the tenant.
The appropriate procedure depends on the location of the premises and the nature of the tenancy.
This is particularly important in Lagos, where the Tenancy Law 2011 regulates the relationship between landlords and tenants and provides a procedure for recovery of premises.
What If the Landlord Wants the Tenant Out Because the Landlord Wants to Move In?
The landlord’s desire to occupy the property personally does not, by itself, entitle the landlord to use force or bypass the applicable recovery procedure.
If the landlord is entitled to recover possession after the tenancy has been properly determined, the landlord must follow the prescribed legal process.
The tenant’s position is therefore determined by the existing tenancy and the applicable law, not simply by the landlord’s personal reason for wanting the property back.
What If the Property Is in Lagos?
For premises within the areas covered by the Lagos State Tenancy Law 2011, the Law regulates the relationship between landlord and tenant and provides for the recovery of premises.
The Law applies to premises in Lagos State, subject to specified exclusions. It expressly excludes, among other things, Apapa, Ikeja GRA, Ikoyi and Victoria Island, as well as certain categories of premises.
A tenant in Lagos should therefore establish whether the premises fall within the application of the Law before relying on its provisions.
What About the Lagos State Tenancy and Recovery of Premises Bill 2025?
There has been significant confusion online about the status of the proposed Lagos State Tenancy and Recovery of Premises Bill 2025.
The Bill contains provisions dealing with tenancy agreements, notice, renewal-related issues, recovery of premises and the rights and obligations of landlords and tenants. However, it remains important to distinguish a Bill from an enacted law. The available material identifies it as the 2025 Bill rather than the existing Lagos State Tenancy Law.
Accordingly, this article does not treat provisions contained only in the 2025 Bill as though they are presently binding law.
What Is the Best Way to Protect a Tenant’s Right to Renew?
The best protection is to ensure that the tenancy agreement clearly addresses renewal from the beginning.
A well-drafted renewal clause should ideally address:
- whether the tenant has an option or merely a right to negotiate;
- the duration of the renewal;
- the deadline for exercising the option;
- the manner in which the option must be exercised;
- whether the tenant must be free from rent arrears;
- whether other breaches affect the right;
- how the new rent will be determined;
- whether the landlord’s consent is required; and
- what happens if the parties disagree over the new rent.
Ambiguous renewal clauses are a common source of disputes.
Conclusion
A landlord’s refusal to renew a tenancy does not automatically mean that the tenant has a legal claim to remain in the property.
The tenancy agreement is the starting point. Where there is no contractual right or option to renew, the landlord is generally not required to grant the tenant another term merely because the tenant has occupied the property for a long time or has consistently paid rent.
The position is different where the agreement contains an enforceable option to renew. In that situation, the tenant must comply strictly with the conditions for exercising the option, and the landlord’s refusal must be assessed against the actual terms of the agreement.
A tenant should therefore not wait until the tenancy has expired before examining the renewal clause or seeking legal advice.
If your landlord has refused to renew your tenancy, or you are a landlord dealing with a tenant who wants to remain after the tenancy has expired, Lexforte Attorneys can review the tenancy agreement, determine the rights of the parties and advise on the appropriate legal steps. Contact Lexforte Attorneys for professional assistance with tenancy renewal, landlord and tenant disputes and recovery of premises in Nigeria.