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