Introduction
For many Nigerians, the annual renewal of a tenancy has become less of a routine transaction and more of a negotiation to avert a financial crisis. A tenant who paid ₦800,000 in rent one year may be confronted with a demand for ₦1.5 million at renewal, sometimes with little or no explanation beyond “the economy has changed.”
Rising property values, inflation, increased demand and developments within a neighbourhood may legitimately influence rental prices. However, the fact that a landlord owns a property does not necessarily mean that the landlord has an unfettered right to impose any rent, at any time and in any manner however, the legal position is more nuanced. The enforceability of a rent increase depends on the existing tenancy agreement, whether the tenancy is still subsisting, the applicable state tenancy legislation and, in some jurisdictions, whether the increase can be demonstrated to be unreasonable.
This raises an important question, when does a legitimate rent review become an arbitrary rent hike?
What Constitutes an Arbitrary Rent Increase?
There is no single percentage increase that automatically makes a rent hike “arbitrary” across Nigeria. The legal position is largely dependent on the applicable tenancy regime and the terms agreed between the landlord and tenant. An increase may become legally problematic where a landlord attempts to alter the agreed rent during a subsisting fixed-term tenancy without a contractual basis for doing so. A tenancy agreement is a contract, and its terms generally bind the parties. A landlord cannot ordinarily treat a tenant’s payment for an agreed period as an invitation to renegotiate the contract midway through that period.
The situation is different when the tenancy expires and the parties are negotiating a renewal. At that point, a landlord may propose a new rental figure for a new tenancy. The tenant is not ordinarily entitled to compel the landlord to renew at the previous rent. However, even at renewal, the landlord’s method of recovering possession must comply with the applicable tenancy and recovery-of-premises laws. A tenant’s refusal to accept a proposed rent does not give a landlord a licence to resort to self-help, harassment or forcible eviction. A landlord may have the right to propose a higher rent, but that does not necessarily mean the landlord has the right to impose the increase unlawfully.
The Position Under Lagos State Law
Given that there is no federal rent control regime, Lagos provides an important statutory example for the purpose of this article. 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 may apply to the court for an order declaring an increase in rent unreasonable. The significance of this provision is that the law does not leave the tenant entirely at the mercy of the landlord’s demand. Where the statutory requirements are satisfied, the tenant can invite the court to examine whether the proposed increase is unreasonable.
In determining the issue, the court considers:
- The general level of rents for comparable premises in the locality or a similar locality;
- Evidence from witnesses for the parties; and
- Any special circumstances relating to the premises or any other relevant matter.
Where the court is satisfied that the increase is unreasonable, it may order that the increase be changed to a specific amount. This is significant because the legislation does not establish a simple formula such as “rent cannot increase by more than 20 per cent.” Instead, it adopts a reasonableness-based judicial assessment. Consequently, a 50 per cent increase is not automatically unlawful merely because it is 50 per cent. Equally, a landlord cannot assume that an increase is automatically reasonable merely because properties in the area have become more expensive.
The condition and characteristics of the property may also matter. Two properties in the same neighbourhood may not have the same rental value simply because they are geographically close. Factors such as size, condition, facilities, accessibility, security, renovations and other special circumstances may affect the appropriate rental value.
The statutory approach therefore recognises that rent reasonableness cannot always be reduced to a percentage calculation.
Can a Landlord Increase Rent During an Existing Tenancy?
Where a tenant has entered into a fixed-term tenancy at an agreed rent, the landlord cannot ordinarily disregard that agreement and demand a different rent halfway through the contractual term. For example, if a tenant pays ₦1 million for a tenancy running from January to December, the landlord cannot ordinarily decide in July that the rent is now ₦1.5 million and demand an additional ₦500,000 simply because property values have risen.
The first question should always be, ‘What does the tenancy agreement say?’ A properly drafted agreement may contain a rent-review or escalation clause specifying when and how rent may be reviewed. Where such a clause exists, it becomes an important part of determining the parties’ respective rights. Where there is no contractual mechanism permitting an increase during the term, the landlord’s unilateral alteration of the agreed rent may amount to a breach of the tenancy agreement.
What Happens When the Tenancy Expires?
The legal analysis changes once the agreed tenancy period has expired. A landlord is generally entitled to decide whether to continue the tenancy and, subject to applicable law, may propose new terms for its renewal. This means that the tenant does not necessarily have a legal right to insist that the previous rent remains unchanged indefinitely. However, the landlord must distinguish between refusing to renew at the old rent and unlawfully evicting a tenant.
If a tenant refuses to accept a new rental figure, the landlord must follow the appropriate legal process for recovering possession. The landlord cannot simply change the locks, remove the tenant’s belongings, disconnect essential services or use threats and harassment to force the tenant out. In Lagos, for example, section 13 of the Tenancy Law provides statutory notice periods where the tenancy agreement does not stipulate the notice to be given. These include one month for a monthly tenancy and six months for a yearly tenancy. The expiration of a tenancy therefore does not convert the landlord’s ownership rights into a right of self-help.
The Proposed Reforms in Lagos
The increasing public concern over rent inflation has also prompted legislative reform. The Lagos State Government has proposed the Lagos State Tenancy and Recovery of Premises Bill 2025, which seeks to reform the existing framework governing landlord-tenant relationships and address issues including arbitrary rent increases, excessive charges and other exploitative practices.
However, the Bill should not be confused with existing law. As of 2026, it remains a proposal and has not replaced the Lagos State Tenancy Law 2011. This distinction is particularly important when discussing tenants’ rights. Proposed legislation cannot be treated as though it is already enforceable.
Remedies Available to Tenants When Faced With a Steep Rent Increase
The appropriate remedy available to a tenant will depend on the nature of the landlord’s conduct and the applicable law. Where an increase is imposed contrary to the express terms of a subsisting tenancy agreement, the tenant may have a contractual basis for challenging the demand. However, where the relevant state legislation provides a statutory mechanism for challenging unreasonable rent increases, the tenant may invoke that mechanism. In Lagos State, for example, section 37 of the Tenancy Law 2011 provides for an application to the court concerning an unreasonable increase, with the court empowered, where appropriate, to determine or adjust the amount.
Where the landlord seeks to recover possession, the tenant may also be entitled to challenge non-compliance with the applicable statutory requirements governing termination and recovery of premises. Importantly, however, the existence of a statutory protection against unreasonable rent increases should not be interpreted as creating an unrestricted right for a tenant to remain in possession indefinitely at a historic rental rate. The law seeks to regulate the relationship, not necessarily to freeze rental values permanently.
Conclusion
A landlord’s ownership of property does not mean that every rent increase is automatically lawful, just as a tenant’s desire to remain in a property does not mean that the landlord must maintain the existing rent indefinitely. The legality of a rent increase depends on several factors, including the tenancy agreement, whether the tenancy is still subsisting, the applicable state law and the circumstances surrounding the proposed increase.
Lagos provides a particularly important statutory protection through section 37 of the Tenancy Law 2011, which permits an existing tenant, subject to the statutory qualification, to challenge an increase considered unreasonable and empowers the court to determine the appropriate rental amount. The broader problem, however, remains unresolved. Nigeria’s fragmented tenancy framework does not currently provide a uniform national standard for determining how frequently or by how much rent may be increased. As housing costs continue to rise, the debate is therefore shifting from whether landlords should be permitted to review rent to how that power should be exercised without undermining housing security.
Ultimately, a fair rental market requires protection for both sides where landlords should be able to obtain a reasonable return on their property, while tenants should not be left vulnerable to unpredictable and disproportionate rent increases. The real question is not whether rent should increase. It is whether the increase is lawful, reasonable and capable of being justified.
