Imagine paying ₦800,000 annual rent for a property and receiving a notice that your rent will increase to ₦1.5 million when your tenancy is renewed. Can your landlord simply increase the rent by whatever amount he wants? The answer depends on the terms of the tenancy, the applicable law and the circumstances surrounding the proposed increase. For tenants in Lagos, the question is particularly important because the Lagos State Tenancy Law 2011 contains provisions dealing with unreasonable rent increases. At the same time, the Lagos State House of Assembly introduced the Lagos State Tenancy and Recovery of Premises Bill 2025, which proposes significant changes to the existing framework. The Bill is not yet the law and should not be confused with the existing 2011 legislation. Can a Landlord Increase Rent? A landlord is entitled to review the rent payable for a property, particularly when an existing tenancy expires and the parties are negotiating a new tenancy. However, the landlord’s right to increase rent is not an unrestricted right to impose any amount at any time. The first document to examine is the tenancy agreement. If the agreement contains a rent-review or escalation clause, that provision is relevant in determining the parties’ rights. Where there is no such provision, the circumstances surrounding the proposed increase and the applicable law must be considered. Can a Landlord Increase Rent During an Existing Tenancy? The position is different where the tenant is still within a fixed tenancy period. A landlord cannot simply disregard the terms of a subsisting tenancy agreement and impose a new rent in the middle of the agreed term. For example, if a tenant has paid ₦1 million for a one-year tenancy running from January to December, the landlord cannot ordinarily demand an additional ₦500,000 in July merely because rental values in the area have increased. The contractual terms governing the tenancy remain binding. What Happens When the Tenancy Expires? When the agreed tenancy period expires, the parties are dealing with the renewal or continuation of the tenancy. A landlord who wishes to continue the tenancy at a higher rent can propose new terms for the new tenancy. The tenant can then accept the proposed rent, negotiate or decide not to continue the tenancy. However, the landlord must still comply with the applicable law when seeking possession where the tenant does not agree to the new terms. A landlord cannot use force or self-help simply because a tenant refuses to accept a proposed increase. What Is an Unreasonable Rent Increase? An increase can become legally challengeable where the applicable law treats it as unreasonable. The fact that a landlord has increased rent does not, by itself, establish that the increase is unlawful. The size of the increase must be considered alongside the relevant circumstances. For example, an increase from ₦1 million to ₦1.2 million is a 20% increase, while an increase from ₦1 million to ₦3 million is a 200% increase. The percentage alone does not determine whether the increase is legally unreasonable. Factors relating to the property and prevailing rents in the locality are relevant. What Does the Lagos Tenancy Law 2011 Say About Unreasonable Rent Increases? Section 37 of the Lagos State Tenancy Law 2011 specifically addresses unreasonable increases in rent. Subject to any agreement to the contrary, an existing tenant can apply to the court for an order declaring an increase in rent unreasonable. In determining whether the increase is unreasonable, the court considers matters including: The general level of rents in the locality. The level of rents in similar localities. Evidence from the parties. Special circumstances relating to the premises. Other relevant matters. Where the court is satisfied that the increase is unreasonable, it can order that the increase be changed to a specific amount. This statutory protection is important, but it should not be presented as though it applies identically to every property and tenancy in Lagos. The scope and application of the 2011 Law must be considered in relation to the particular premises. Has the Lagos Tenancy Law Been Amended in 2025? This requires clarification because there has been considerable confusion about it. In May 2025, the Lagos State Government expressly disowned an online publication claiming that the Lagos Tenancy Law had been updated or amended. The Government described that publication as false. What actually happened later in 2025 was the introduction of the Lagos State Tenancy and Recovery of Premises Bill 2025 before the Lagos State House of Assembly. The Bill seeks to repeal and replace the existing 2011 framework and proposes changes concerning matters including rent, advance payments, agency fees and recovery of premises. However, a Bill is not the same thing as an enacted law. Therefore, landlords and tenants should distinguish between: The Lagos State Tenancy Law 2011 — the existing law; and The Lagos State Tenancy and Recovery of Premises Bill 2025 — proposed legislation that seeks to change the existing framework. As at the date of this article, the Bill has not replaced the 2011 Law. What Changes Does the 2025 Bill Propose? The proposed Bill contains significant reforms to the existing tenancy framework. Among other things, it proposes rules concerning: Advance rent. Agency and professional fees. Recovery of premises. Landlord and tenant obligations. Dispute resolution. The scope of application of the tenancy legislation. The Bill also proposes broader application across Lagos State, addressing some of the geographical exclusions associated with the existing 2011 Law. These proposals are important for landlords, tenants, estate agents and property investors to understand. However, they should not be presented as current law until the legislative process is completed and the legislation comes into force. Can a Tenant Challenge an Excessive Rent Increase? Where section 37 of the Lagos State Tenancy Law 2011 applies, an existing tenant can apply to court for an order declaring an unreasonable increase unreasonable. The tenant should support the application with evidence. Relevant evidence can include: Rental agreements for comparable properties. Evidence of rent paid for similar properties. Current
What to Do When a Tenant Stops Paying Rent in Nigeria
Rent is one of the most important obligations of a tenant. When a tenant stops paying rent, the situation can quickly become stressful for a landlord, particularly where the outstanding rent continues to accumulate while the tenant remains in possession of the property. However, a landlord should not resort to threats, force, or self-help simply because rent is unpaid. There are lawful steps that can be taken to recover outstanding rent and, where appropriate, recover possession of the property. This article explains what to do when a tenant stops paying rent in Nigeria, the options available to landlords, and some common mistakes to avoid. What Should a Landlord Do When a Tenant Stops Paying Rent? When rent becomes outstanding, a landlord should first establish exactly what is owed and review the tenancy agreement before taking further action. The appropriate response may include: Confirming the rent arrears. Communicating with the tenant. Reviewing the tenancy agreement. Making a formal demand for payment. Negotiating a repayment arrangement where appropriate. Taking the appropriate legal steps if the tenant refuses to pay. Considering recovery of possession where legally justified. The correct approach depends on the circumstances of the tenancy and the applicable law. Step 1: Confirm the Rent Arrears Before making a demand, the landlord should establish the exact amount outstanding. Check: The agreed rent. The date the rent became due. Previous payments. Any part payments. Receipts issued. Bank transfers. Other charges properly payable under the tenancy agreement. Maintaining accurate records can prevent disagreements about the amount owed. Step 2: Review the Tenancy Agreement The tenancy agreement should be carefully examined to determine the tenant’s obligations and the landlord’s rights. Pay attention to provisions dealing with: Rent payment. Due dates. Default. Termination. Notice. Renewal. Service charges. Repairs and maintenance. Dispute resolution. The agreement may contain provisions that affect the steps the landlord should take. Step 3: Communicate With the Tenant Before immediately commencing legal proceedings, the landlord may contact the tenant to determine why the rent has not been paid. There may be a temporary financial difficulty, a misunderstanding about the amount due, or another issue that can be resolved without litigation. Where the tenant genuinely intends to pay, the parties may agree on a reasonable repayment arrangement. Any repayment arrangement should preferably be documented in writing. Step 4: Make a Formal Demand for Payment If informal discussions do not resolve the problem, the landlord may make a formal demand for the outstanding rent. A demand should clearly state: The amount outstanding. The period for which rent is unpaid. The basis of the claim. The deadline for payment. The consequences of failing to pay. In appropriate circumstances, a lawyer may issue a formal demand letter on behalf of the landlord. A formal demand can demonstrate that the landlord gave the tenant an opportunity to resolve the arrears before taking further action. Step 5: Consider a Repayment Arrangement Not every rent dispute needs to end in litigation. If the tenant is temporarily unable to pay the entire amount, the landlord may consider negotiating a repayment plan. For example, the parties may agree that the tenant will: Pay an initial amount immediately. Pay the balance in instalments. Continue paying current rent as it falls due. Vacate the property by an agreed date, where appropriate. Any agreement should clearly record the terms agreed by both parties. What If the Tenant Still Refuses to Pay? If the tenant continues to refuse payment, the landlord may need to consider legal action. This usually involves pursuing recovery of the outstanding rent and seeking recovery of possession. Can a Landlord Lock Out a Tenant for Non-Payment of Rent? A landlord should be extremely cautious about taking unilateral steps to force a tenant out. Changing the locks, removing the tenant’s belongings, disconnecting essential services, or using force may expose the landlord to legal consequences. The fact that rent is outstanding does not automatically give a landlord the right to use self-help to recover possession. Where possession is required, the landlord should follow the applicable legal procedure. For a detailed explanation of the process for recovering possession, see our guide on [How to Legally Evict a Tenant in Nigeria]. Can a Landlord Recover Both Rent and Possession? Yes. A landlord can claim both outstanding rent and recovery of possession from a tenant who has defaulted, where the relevant legal requirements are satisfied. However, it is important to distinguish between rent arrears and mesne profits. Rent Arrears Rent arrears are amounts of rent that became due and payable during the subsistence of the tenancy but remain unpaid by the tenant. For example, if a tenant was required to pay ₦2,000,000 annually and failed to pay the rent when it fell due, the unpaid amount constitutes rent arrears. Mesne Profits Mesne profits are generally the compensation payable for the use and occupation of premises after the tenant’s lawful right to remain in possession has come to an end. Once the tenancy has been properly determined but the tenant remains in possession, the landlord may seek mesne profits for the period of such wrongful occupation until possession is recovered, subject to the applicable law and proof required. Therefore, where a tenant remains in possession after the lawful termination of the tenancy, the landlord’s claim may include: Recovery of possession; Outstanding rent that accrued during the tenancy; and Mesne profits for the period of unlawful occupation after the tenancy has ended. The distinction is important because rent and mesne profits relate to different periods of occupation and should not simply be treated as interchangeable terms. A landlord seeking to recover both possession and money from a defaulting tenant should ensure that the appropriate claims and reliefs are properly pleaded and supported by evidence. What Evidence Should a Landlord Keep? A landlord dealing with rent arrears should preserve all relevant evidence. This may include: The tenancy agreement. Rent receipts. Bank statements. Transfer confirmations. Messages exchanged with the tenant. Formal demands. Records of previous payments. Any written acknowledgement of