Soaring rent prices in major cities are increasingly influenced by more than just inflation or market dynamics. Mounting evidence points to the unchecked actions of estate agents exploiting regulatory loopholes, pushing housing costs higher and placing the burden squarely on tenants.
Across urban centers like Lagos, Abuja, Port Harcourt, and Kano, residents are voicing growing frustration over what they describe as arbitrary charges and rent inflation orchestrated by unscrupulous intermediaries. These agents, often operating without formal oversight or training, are blamed for distorting property values and worsening access to affordable housing.
In Lagos, tenants in locations such as Lekki, Yaba, and Surulere recount how agents inflate property prices by creating artificial demand and misrepresenting market realities. Meanwhile, in Port Harcourt’s upscale zones like GRA, agents seize the opportunity presented by the oil industry and foreign professionals to encourage landlords to demand outrageous rent.
Further north in Kano, complaints abound over the informal nature of estate practice — many renters face hidden charges, get evicted without notice, and receive no receipts for payments. In Abuja, labeling ordinary units as “luxury apartments” has become a tactic for agents aiming to justify price hikes in districts such as Wuse, Maitama, and Asokoro.
Beyond inflated rents, tenants report a long list of unjustified fees: inspection fees of ₦15,000 to ₦20,000, commissions that exceed legal limits, agreement charges, caution deposits, and mysterious service levies , all of which drive total costs far beyond the listed rent. A typical two-bedroom unit in Lagos, once rented at ₦600,000, can now cost up to ₦2 million, excluding other hidden expenses that sometimes reach half the rent amount.
The problem persists despite the 2022 Lagos State Real Estate Regulatory Law, which mandates all estate practitioners to register with the state. According to stakeholders, the law remains ineffective due to weak enforcement and widespread non-compliance, particularly among freelance agents and informal operators.
“We’re seeing a situation where people who are not trained or certified as real estate professionals are the ones dominating the market,” said a senior real estate analyst in Lagos. “This lack of structure allows abuse to thrive, and tenants have little or no protection.”
The Lagos State Real Estate Regulatory Authority (LASRERA), established to bring order to the sector, has registered some practitioners and cracked down on erring agents. Still, informal operators continue to thrive, particularly in lower-income areas where oversight is limited and demand is high.
Industry insiders believe that many of the exorbitant charges are orchestrated by individuals operating outside recognized professional bodies. “We don’t charge inspection fees or 20% commissions and that’s not part of the estate surveyor’s code of conduct,” said Mr. Sam Eboigbe, former chairman of the Faculty of Estate Agency and Marketing, under the Nigerian Institution of Estate Surveyors and Valuers (NIESV).
According to him, the legally approved agency fee remains 10%, and caution deposits should always be refundable, provided the tenant leaves the property in good condition. Eboigbe warned that unregulated operators have hijacked the industry, leaving professional agents to battle a growing reputation crisis.
Gbenga Ismail, Vice Chairman of the Association of Estate Agents in Nigeria (AEAN), echoed similar concerns. He noted that while AEAN follows professional guidelines, unregulated agents particularly those working outside established bodies are responsible for many of the pricing irregularities and exploitative charges.
“The problem is more prevalent in areas with vulnerable populations,” he said. “You find most of these arbitrary fees in low-income neighborhoods where people have fewer options and less access to information.”
Efforts by associations like the Estate, Rent & Commission Agents Association of Nigeria (ERCAAN) have focused on curbing quack agents through advocacy and discipline. However, former PRO of ERCAAN, Mr. Ademola Makanjuola, admitted that non-members significantly outnumber registered practitioners, making the task increasingly difficult.
Experts are now calling on state governments to take more decisive action by replicating LASRERA’s model nationwide, enforcing agent licensing, standardizing fees, and establishing tenant protection frameworks.
Until then, many fear the housing crisis will only deepen — especially for low- and middle-income Nigerians who are already struggling under economic pressure.
