Signing a lease in Nigeria is a major step, but many tenants and landlords fall into costly traps by not fully understanding the contract. A lease agreement is a legally binding document that protects both parties, but only if it’s properly drafted and understood.

What is a Lease Agreement in Nigeria?

A lease agreement is a legally binding contract between a landlord (property owner) and a tenant (occupant) that outlines the terms and conditions of renting a property. In Nigeria, this document goes beyond simply stating rent—it defines the rights, duties, and protections of both parties.

For tenants, it ensures they cannot be evicted unfairly or subjected to arbitrary rent increases. For landlords, it protects their property and provides a legal framework to recover rent or reclaim the property if the tenant defaults.

Unfortunately, many Nigerians still rely on oral agreements or hastily drafted documents, which often lead to disputes, financial loss, and in some cases, court battles.

Why Lease Agreements Are Critical in Nigeria’s Real Estate Market

Nigeria’s property market is unique due to high housing demand, informal renting practices, and in some regions, weak enforcement of tenancy laws. This makes a proper lease agreement essential.

A well-drafted lease:

• Provides clarity on rent, payment schedules, and increases.
• Sets out maintenance responsibilities (e.g., who repairs plumbing or pays service charges).
• Defines duration and renewal terms to avoid sudden eviction.
• Ensures legal enforceability in case of disputes.
• Protects both landlord’s investment and tenant’s right to peaceful possession.

Common Traps Tenants Fall Into

• Hidden Charges
  Many tenants are surprised by unexpected costs like service charges, waste disposal fees, or community levies not mentioned upfront.
• No Proof of Ownership
  Fraudsters sometimes pose as landlords or agents. Without verifying ownership documents (like a Deed of Assignment or C of O), tenants risk paying rent to the wrong person.
• Unclear Terms
  Issues such as rent increment timelines, renewal processes, or exit clauses (how much notice is required before moving out) are often vague or omitted.
• Verbal Agreements
  Some tenants rely only on handshake deals, leaving no legal proof if disputes arise.

Common Traps Landlords Face

• Vague Payment Terms
  Without clear terms, tenants may delay rent or refuse to pay without consequences.
• Difficulty Evicting Tenants
  Nigerian tenancy laws often favor tenants, and without a strong agreement, eviction becomes a drawn-out court process.
• Property Misuse
  Tenants may convert residential spaces into shops, short-let apartments, or even churches, damaging the property and breaching local regulations.
• Unclear Security Deposits
  Disputes often arise when the lease doesn’t specify how deposits should be managed or refunded.

Case Study: The Adegoke Family and the “Hidden Charges”

Mr. and Mrs. Adegoke found a beautiful three-bedroom apartment in Lekki, Lagos. The landlord, Mr. Okoro, a seemingly friendly individual, presented a one-page “agreement” that stated the yearly rent and a security deposit. Eager to move in, the Adegokes signed it without seeking legal counsel or a detailed breakdown.

A few months into their tenancy, they were surprised with bills for “estate dues,” “generator maintenance,” and “water treatment fees,” which were not mentioned in the brief agreement. When they challenged Mr. Okoro, he pointed to an unsigned document he claimed was “standard” for the estate. The Adegokes, without a detailed lease agreement, had no legal ground to refuse these payments. The hidden charges added an extra ₦300,000 to their yearly expenses, a sum that severely strained their budget.

Lesson Learned: A detailed lease agreement is a shield against unexpected costs. All potential fees, including service charges, security, and maintenance fees, must be clearly itemized and agreed upon before signing.

How to Protect Yourself Before Signing

• Verify Ownership: Always request proof of ownership from the landlord, such as the Deed of Assignment, Certificate of Occupancy, or Power of Attorney.
• Insist on a Written Agreement: Never rely on verbal promises. Ensure all terms are in a written, signed, and dated document.
• Read and Understand Every Clause: Take your time. If you don’t understand a clause, ask for clarification.
• Seek Legal Counsel: A real estate lawyer can review the agreement, identify potential traps, and ensure your rights are protected.
• Document Everything: Take photographs or videos of the property’s condition before you move in to avoid being held liable for pre-existing damage.

By being diligent and understanding the nuances of a lease agreement, both tenants and landlords can protect their interests and ensure a smooth, transparent, and legally sound relationship.

Sample Lease Agreement Checklist for Nigeria

Here’s a clause-by-clause outline of what a proper Nigerian lease agreement should contain:

1. Parties Involved
   • Full names and addresses of landlord and tenant.
2. Property Description
   • Full address, type of property, and any facilities included (e.g., generator, water supply, parking).
3. Duration of Lease
   • How long the tenant can occupy (e.g., one year, two years).
4. Rent Amount and Payment Terms
   • Exact rent, due date, frequency (monthly/yearly), and method of payment.
5. Security Deposit
   • Amount required, purpose (e.g., covering damages), and terms of refund at the end of tenancy.
6. Service Charges and Utilities
   • Who pays for electricity, water, waste disposal, security, and other communal services.
7. Maintenance and Repairs
   • Landlord’s responsibility: structural repairs, roof, plumbing.
   • Tenant’s responsibility: day-to-day upkeep and minor fixes.
8. Use of Property
   • Clear restrictions (e.g., residential use only, no subletting without consent).
9. Rent Increment Clause
   • Whether the landlord can increase rent during the lease and under what conditions.
10. Termination/Exit Clause
    • Required notice period (commonly 3 months for yearly tenants in Nigeria).
    • Grounds for termination (e.g., rent default, misuse of property).
11. Renewal Clause
    • Whether the tenant has the first right to renew and under what conditions.
12. Breach of Agreement
    • Penalties or legal steps if either party defaults.
13. Jurisdiction/Dispute Resolution
    • Which court or arbitration process will handle disputes (often tied to the property’s location).
14. Signatures and Witnesses
    • Both parties must sign, and the agreement should be witnessed (preferably by independent parties).

How MyPlace.ng Helps

At MyPlace.ng, we connect buyers, sellers, landlords, agents, and tenants on a trusted platform designed to reduce the risks that come with renting in Nigeria. While we do not verify ownership documents, we only collaborate with vetted professionals who pledge to maintain transparency.

Our goal is to simplify property transactions while encouraging tenants and landlords to practice due diligence.

Key Takeaway ✅: A lease agreement is more than just paperwork—it’s your shield in Nigeria’s unpredictable real estate market. Whether you’re a landlord or tenant, always put it in writing, verify ownership, and seek legal guidance before signing.