A rent increase can put a tenant in a difficult position, particularly where the landlord proposes a substantial increase shortly before the tenancy is due for renewal.
This raises an important question: Can a tenant refuse a rent increase in Nigeria?
The answer depends on whether the increase is being proposed during an existing tenancy or in connection with a new tenancy, what the tenancy agreement provides, and the law applicable to the property.
In Lagos State, the Tenancy Law 2011 provides a specific remedy for an existing tenant who considers an increase in rent unreasonable. Under Section 37, the tenant can apply to court for an order declaring the increase unreasonable, subject to the terms of the tenancy agreement. The court considers factors including the general level of rents in the locality or a similar locality, evidence from the parties and any special circumstances relating to the premises.
A tenant therefore should not simply assume that every rent increase must be accepted, but neither should a tenant assume that every increase is automatically unlawful.
Can a Landlord Increase Rent in Nigeria?
Generally, a landlord can propose an increase in rent, subject to the terms of the existing tenancy agreement and any applicable law regulating the tenancy.
The important question is when and how the increase is being imposed.
A landlord cannot simply treat an existing tenancy as though it were a new tenancy and demand a different rent in the middle of an agreed fixed term unless the tenancy agreement or applicable law permits the increase.
For example, if a tenant has paid ₦2 million for a one-year fixed tenancy running from January to December, the landlord cannot ordinarily announce in June that the rent has increased to ₦3 million and demand the additional ₦1 million immediately, unless there is a contractual or legal basis for doing so.
The position is different when the existing tenancy is coming to an end and the landlord proposes a new rent for a new tenancy.
Can a Tenant Refuse to Pay the Increased Rent?
Yes, a tenant can refuse to accept the proposed increase.
But the legal consequences depend on the circumstances.
A tenant’s refusal does not automatically mean that the landlord has committed an offence or that the tenant has acquired an indefinite right to remain in the property at the old rent.
If the existing tenancy has expired and there is no contractual right to renewal at the previous rent, the landlord can decide not to grant another tenancy at that rent.
On the other hand, where the increase is imposed during an existing tenancy contrary to the tenancy agreement, or where the applicable law gives the tenant a right to challenge an unreasonable increase, the tenant has stronger grounds to contest it.
Can a Landlord Increase Rent During an Existing Tenancy?
The answer depends primarily on the tenancy agreement.
If the agreement is for a fixed term at a specified rent and contains no rent review provision, the landlord ordinarily cannot unilaterally rewrite the agreement and impose a new rent before the agreed term expires.
For example, if the agreement provides for a fixed annual rent of ₦2 million for a two-year term, the landlord cannot ordinarily increase the rent to ₦3 million after the first six months simply because property values have increased.
However, some tenancy agreements contain rent review clauses.
Where a valid rent review clause exists, the landlord’s right to increase the rent must be exercised in accordance with the clause.
The tenant should therefore read the agreement before deciding whether an increase is lawful.
What If the Rent Increase Is Proposed When the Tenancy Is Being Renewed?
This is different from increasing rent during an existing fixed term.
At the end of a fixed tenancy, the landlord and tenant can negotiate the terms of a new tenancy, including the rent.
If the tenant has no contractual right to renew at the old rent, the landlord can generally propose a new rent as a condition for entering into a fresh tenancy.
The tenant can reject the proposed rent.
However, rejecting the new rent does not necessarily give the tenant a right to remain indefinitely at the old rent.
The tenant must consider whether:
- the existing tenancy has expired;
- there is an option to renew;
- the renewal clause specifies how rent is to be determined;
- the landlord has validly determined the tenancy; and
- the landlord has complied with the applicable recovery-of-premises procedure.
This is why a dispute about a rent increase at renewal can sometimes become a renewal and possession dispute, rather than simply a rent dispute.
Can a Tenant Challenge an Unreasonable Rent Increase in Lagos?
Yes.
This is expressly provided for by Section 37 of the Lagos State Tenancy Law 2011.
Section 37(1) provides that, subject to any agreement to the contrary, an existing tenant can apply to court for an order declaring that an increase in rent payable under the tenancy agreement is unreasonable.
This is an important statutory protection.
It means that where an existing tenant considers a proposed increase unreasonable, the tenant does not have to rely solely on negotiation with the landlord.
The tenant can seek judicial determination of the reasonableness of the increase.
What Does the Court Consider When Determining Whether Rent Is Unreasonable?
Section 37(2) of the Lagos State Tenancy Law identifies factors the court is to consider.
These include:
1. The General Level of Rent in the Locality
The court can consider what comparable properties in the same locality are being rented for.
This is important because a landlord cannot establish that an increase is reasonable merely by asserting that the property has become more valuable.
Evidence of comparable rents can assist the court in determining whether the proposed rent is excessive.
2. Evidence of the Parties
The court can consider evidence presented by both the landlord and tenant.
This can include evidence relating to the property, the existing rent, the proposed increase and comparable rental values.
3. Special Circumstances Relating to the Premises
The court can also consider any special circumstances relating to the particular premises or any other relevant matter.
The determination is therefore not based solely on a mathematical percentage increase.
What Happens If the Court Finds the Increase Unreasonable?
If the court is satisfied that the increase is unreasonable, Section 37(3) empowers the court to order that the increase be changed to a specific amount.
This is significant because the court is not limited to merely declaring the landlord’s proposed increase unreasonable.
The court can determine an amount to which the increase should be changed.
Can a Landlord Evict a Tenant for Challenging an Unreasonable Rent Increase?
Under Section 37(4) of the Lagos State Tenancy Law 2011, it is unlawful for a landlord to eject a tenant from the premises pending the determination of an action challenging the reasonableness of the rent increase.
This provides an important protection to an existing tenant who has properly invoked the statutory procedure.
It does not, however, mean that a tenant can remain in possession indefinitely without paying rent or without complying with other obligations under the tenancy.
Can a Tenant Simply Continue Paying the Old Rent?
A tenant should exercise caution here.
Where the landlord has demanded a higher rent and the tenant unilaterally decides to continue paying the old rent without taking any further legal or contractual steps, the landlord could treat the shortfall as rent arrears.
The tenant should therefore not assume that merely transferring the old rent to the landlord’s account completely resolves the dispute.
Where there is a genuine dispute about the amount payable, the tenant should obtain legal advice and consider the appropriate legal procedure.
In Lagos, where a landlord refuses to accept the current rent from a tenant, Section 29 of the Tenancy Law provides a mechanism under which the tenant can apply to court to pay the rent into the Court’s Registry.
This is preferable to simply allowing the alleged arrears to accumulate without taking steps to document and protect the tenant’s position.
What If the Landlord Refuses to Accept the Old Rent?
A landlord’s refusal to accept rent can create complications for the tenant.
The tenant should not simply keep the money indefinitely without taking steps to establish that the rent was available and that the tenant intended to pay.
Under Section 29 of the Lagos State Tenancy Law, where a landlord refuses to accept the current rent, the tenant can apply to the court to pay the rent into the Court’s Registry. The landlord can subsequently collect the rent from the court, subject to the statutory deduction.
The tenant should therefore document:
- the landlord’s demand;
- the amount previously payable;
- the new amount demanded;
- attempts to pay the rent;
- the landlord’s refusal to accept payment; and
- any correspondence between the parties.
Can a Tenant Negotiate the Increase Instead?
Absolutely.
Court proceedings should not necessarily be the first step.
A tenant can negotiate with the landlord, particularly where the increase is substantial.
The tenant can propose:
- a smaller increase;
- a phased increase;
- a longer renewal term;
- payment in instalments where legally permissible;
- a mutually agreed rent review mechanism; or
- another arrangement acceptable to both parties.
A written record of the negotiation should be maintained.
Can a Landlord Increase Rent by Any Percentage?
There is no universal Nigerian rule that says a landlord can increase rent by only a particular percentage every year.
The legal position depends on the applicable state law, the tenancy agreement and the circumstances.
In Lagos, the Tenancy Law does not prescribe a simple percentage cap for every rent increase. Instead, Section 37 provides an existing tenant with a mechanism to challenge an increase that is considered unreasonable. The court then determines reasonableness using the factors specified by the Law.
Therefore, statements such as “the law allows only a 10% annual increase” should not be treated as a general rule applicable to every tenancy in Nigeria.
Does a Large Increase Automatically Make It Unreasonable?
No.
A large increase can be evidence that an increase is unreasonable, but the size of the increase alone does not necessarily determine the issue.
The court can consider prevailing rents in the locality, evidence from the parties and the circumstances of the particular property.
For example, an increase from ₦1 million to ₦1.5 million represents a 50% increase. Whether that increase is unreasonable cannot be determined solely by the percentage.
The relevant question is whether the proposed rent is unreasonable having regard to the circumstances contemplated by the applicable law.
What If Similar Properties Are Being Rented for Less?
This can be important evidence for a tenant challenging an increase in Lagos.
If the landlord proposes ₦5 million while comparable properties in the same locality are consistently being rented for ₦3 million, evidence of those comparable rents can support the tenant’s argument that the increase is unreasonable.
The tenant should therefore gather reliable evidence rather than simply asserting that the landlord’s demand is excessive.
Useful evidence can include:
- advertisements for comparable properties;
- rental agreements for similar properties;
- evidence from estate agents;
- valuation evidence;
- receipts showing prevailing rents; and
- testimony concerning comparable premises.
Can a Tenant Refuse a Rent Increase Outside Lagos?
There is no single answer applicable to every state.
Landlord and tenant law in Nigeria is substantially state-based, and the applicable legislation differs from one jurisdiction to another.
A tenant in Abuja, Rivers State, Anambra State, Enugu State or another jurisdiction should therefore not automatically rely on Section 37 of the Lagos State Tenancy Law.
The first question should always be:
What law governs the tenancy in the state where the property is located?
The tenancy agreement must then be examined alongside that law.
Can a Tenant Refuse a Rent Increase and Remain in the Property?
A tenant should distinguish between challenging an increase and simply refusing to pay.
Where the law provides a procedure for challenging an unreasonable increase, the tenant should use that procedure.
Simply refusing to pay without taking appropriate legal steps can expose the tenant to allegations of rent arrears and ultimately recovery proceedings.
A tenant should therefore not turn a legitimate dispute about rent into an avoidable dispute about arrears.
What If the Landlord Gives the Tenant a Notice to Quit After the Tenant Refuses the Increase?
This situation requires careful examination.
The landlord’s ability to recover possession depends on the nature of the tenancy, the tenancy agreement, the reason for the notice and the applicable law.
A landlord cannot simply bypass the legal procedure for recovery of premises because the tenant has disputed a rent increase.
In Lagos, where a tenant has commenced an action under Section 37 challenging the reasonableness of an increase, Section 37(4) specifically prohibits the landlord from ejecting the tenant pending determination of that action.
However, the precise legal position depends on the facts and whether the statutory requirements for invoking Section 37 have been satisfied.
What Should a Tenant Do When the Landlord Announces a Rent Increase?
A tenant should take the following steps.
1. Check the Tenancy Agreement
Look for:
- rent review clauses;
- renewal clauses;
- termination provisions;
- notice requirements; and
- provisions dealing with rent increases.
2. Determine Whether the Current Tenancy Has Expired
An increase during an existing fixed term raises different issues from a proposed increase for a new tenancy.
3. Ask the Landlord to Confirm the Increase in Writing
The tenant should obtain a written record of:
- the current rent;
- the proposed rent;
- the effective date; and
- the reason given for the increase.
4. Investigate Comparable Rents
If the tenant believes the increase is unreasonable, evidence of comparable properties can become important.
5. Negotiate Where Appropriate
A negotiated solution can avoid unnecessary litigation.
6. Obtain Legal Advice Before Withholding Rent
A tenant should not simply stop paying rent without understanding the legal consequences.
7. Consider the Appropriate Court Remedy
Where the Lagos State Tenancy Law applies and the increase is considered unreasonable, an existing tenant can consider the statutory procedure under Section 37.
What Should a Landlord Do Before Increasing Rent?
A landlord should also avoid treating every rent increase as a purely commercial decision.
Before increasing rent, the landlord should:
- examine the tenancy agreement;
- determine whether the tenancy is still within a fixed term;
- check any rent review clause;
- consider prevailing market rents;
- give any required contractual notice;
- ensure compliance with applicable legislation; and
- avoid taking steps that amount to unlawful self-help.
A landlord who simply announces a substantial increase without considering the existing tenancy can create an unnecessary legal dispute.
Is the Lagos State Tenancy and Recovery of Premises Bill 2025 Now the Law?
The status of the proposed Lagos State Tenancy and Recovery of Premises Bill 2025 should not be confused with the law currently in force.
Recent 2026 legal commentary continues to identify the 2011 Tenancy Law as the operative framework and describes the 2025 measure as a pending replacement rather than enacted legislation.
Accordingly, the provisions of the 2025 Bill should not be presented as though they have already replaced the Lagos State Tenancy Law 2011.
For a specific dispute, the current legislation applicable to the premises should always be verified before action is taken.
Conclusion
A tenant in Nigeria is not necessarily required to accept every rent increase demanded by a landlord.
The starting point is the tenancy agreement and the law applicable to the property. A landlord cannot ordinarily increase the rent in the middle of a fixed tenancy contrary to the terms of the agreement.
In Lagos State, the law goes further by providing an express remedy for an existing tenant who considers an increase unreasonable. Under Section 37 of the Lagos State Tenancy Law 2011, the tenant can apply to court for a determination of the reasonableness of the increase, and the court can, where appropriate, change the increase to a specific amount.
However, a tenant should not confuse the right to challenge an unreasonable increase with an unrestricted right to remain in possession while paying whatever rent the tenant considers reasonable. The correct legal procedure should be followed.
Similarly, a landlord should not respond to a rent dispute by resorting to self-help or bypassing the statutory procedure for recovery of premises.
If your landlord has increased your rent substantially, or you are a landlord seeking to review the rent payable under a tenancy, Lexforte Attorneys can review the tenancy agreement, assess the legality and reasonableness of the proposed increase and advise you on the appropriate legal steps. Contact Lexforte Attorneys for professional assistance with rent disputes, tenancy matters and landlord and tenant disputes in Nigeria.