Unilag Project

ABSTRACT

Most of the residents of Lagos can be said to be tenants. The profit

margin on the rentals of residential properties are still growing at a sky-

rocketing rate to the extent that some landlords leave their properties and

rent other cheaper ones all just to maximize or gain more profit on the

interest they are holding. These sky-rocketing rents are frustrating to

many residents and had led to the increase in squatter and informal

settlements and creation of slums, as many could not afford to pay these

high rents, hence they have to make do with the “inferior”

accommodation.

With the foregoing therefore, it is the opinion of this writer that the Lagos

State rent Control and Recovery of Residential Premises Edit No 6, 1997

be reviewed and implemented to control or curb the exploitation of

landlords on their tenants.

CHAPTER 1

BACKGROUND OF STUDY

1.1 INTRODUCTION

Since 1920 when the issue of rent Control was first addressed in the

colony of Lagos and subsequently in Lagos State fifty-three years after,

no balance of convenience has been struck between landlords and tenants.

Landlords continue to cling to the old concept of freedom of contract, a

concept strengthened by the forces of demand and supply in an open

market and from unnecessary restraints by the state. To tenants on the

other hand, the 20th century ushered in a new era in contractual relations,

the movement from contract to status strengthened by the international

crusade against exploitation and inhuman treatment of a party to the

contract who is not equal in status with the other, appear to provide

tenants with justification for state intervention.

In developed economies where rent is regulated such as in the United

States of America, France and Germany to mention but few, the argument

usually is that it is the responsibility of the state to assist the less

privileged tenants and protect them against the greed and rapacity of

landlords who might want to exploit their weak bargaining power to

extort unfair rents.

The argument is strengthened in the third world countries by the naked

fact of shortage of accommodation especially in urban centres coupled

with the absence of social security including the provision of housing for

the less privileged. But successive legislation on rent control in Lagos

State before 1997 proved an ineffective bulwark against the crushing

effect of excessive rent. The popular observation is that Government

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cannot control rent over individual properties and that the rent of

accommodation like prices of commodities in the market must technically

and compulsorily respond to the dictates of the market operation of

supply and demand.

With the rising cost of building materials and the failure of successive

governments to shelter the masses at affordable rents, it is to be expected

that more people would chase fewer accommodation, thus paving way for

cut-throat competition by prospective tenants to secure an

accommodation and sometimes at their financial peril. The absence of an

effective monitoring team, the high level of illiteracy, and general lack of

awareness amongst the populace have thrown the masses into the cruel

hand of shylock landlords and made the tenants bemoan their

predicament with equanimity.

In recent time, particularly in the urban centres, there have been

numerous complaints of ill-treatments, oppression and massive

exploitation of tenants by some avaricious landlords who think that

tenants in their premises are slaves, apart from the exorbitant rents they

demand and receive before letting them in, some landlord go to the extent

of monitoring or even restricting the movement of tenants in their

premises.

Property law has shown immense concern and interest in the relationship

between landlords and tenants so much that the law has attempted to

regulate every aspect of the relationship from the creation of same and

recovery of premises from tenants.

But if successive government in the past tried and fail in their attempts to

regulate rent and in 1997, another regime deemed it fit to enact or re-

enact a rent control edict, perhaps the machinery of rent control demands

a re-valuation with a view to putting at rest the controversy surrounding

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the introduction and sustenance of the institution on the landlord and

tenant relationship. But the question still remains, in that was this edict a

failure as others in the past?

1.2 HISTORICAL BACKGROUND

Rent control is whatever form has its antecedent in history. Since the

creation of Lagos State in the 1970’s several attempts have been made to

arrest the social problem of escalating rent.

The first effort made in this regard was that by Brigadier General

Mobolaji Johnson’s administration which promulgated the Rent Control

and Recovery of Residential Premises Edict No. 9 of 1976. The rents

fixed by then were termed “standard and maximum rent” for all

categories of accommodation. Its spirit and subsequent enforcement were

geared towards easing pressure on tenants by reducing the rent on

residential accommodation.

The above edict was suspended by another law titled “Rent Control and

Recovery of Residential Premises (Amendment) Edict, 1986 which came

into force on 21st March, 1986. This edict just made some amendments

to section 4 and 14 of edict No.9 of 1976.

This was in consonance with the declaration of economic emergency by

federal military government. Since then there was no control of rents of

residential properties in the state. This did not achieve much due to lack

of adequate follow-up by the government to see to its implementation.

The cropping effect of the hyper-inflation and the lack of co-operation by

the landlords did no provide a suitable environment for the

implementation and execution of the provision of the edict.

The third attempt was in 1996. The Edict came into being in July 1996.

The edict provides for the establishment of rent tribunals for the

determination and control of standard rents of residential premises and for

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other purposes incidental or connected therewith. It re-established rent

tribunals that were abolished in 1981. This edict was meant to take effect

from December 1st 1995, but was never implemented. The unfavourable

economic climate and lack of adequate machinery for implementation did

not create a conductive environment for the take-off of this edict. This

edict ended only on paper.

The last and latest Rent Control Provision was contained in the Rent

Control and Recovery of Residential Premises Edict No 6 of Lagos State

which came into force on the 21st of March, 1997. As at the late 1990’s,

it once again revisited the turbulent area of landlord and tenant

relationship in a society where different interest compete for recognition

and protection. This had been the edict available till date though it went

extinct over the years due to the change in the state’s power seats.

1.3 AIMS AND OBJECTIVE

1. To see into any existing law(s) on rent control i.e. Lagos State Rent

Control and Recovery of Residential Premises Edict No. 6 1997

and the various problems arising from it and why it is being

neglected over the years.

2. To examine the effectiveness of this law and relevant enactments

that regulates landlord-tenant relationship.

3. To make suggestions on how best these laws can be better

implemented and made even more effective.

1.4 SCOPE OF STUDY

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This project will only cover residential areas of the Lagos metropolis

alone and will show the effect of the Rent Control Edict on the

relationship between the landlords and their tenants so far.

1.5 RELEVANCE OF THE STUDY

This study is establish by a number of factors, up-till date, very little or

no concern is taken in respect of the landlord-tenant relationship, mostly

in areas of rent control and tenant rights. The idea of this study is to

appraise the effects of these rents on landlords and their tenants.

1.6 LIMITATION TO THE STUDY

The time for carrying this research work was particularly short due to the

short nature of the semester. Also, insufficient of past literates and lack of

cooperation from landlords who think the work is a research to effect

more rent review and some tenants. Retrieval of some questionnaires also

posed a major limitation.

1.7 RESEARCH METHODOLOGY

In collecting information for this study, the following step and methods

would be taken;

Primary sources:

i. Questionnaire would be administered to both tenants and landlords

in some selected parts of Lagos where the edict apply.

ii. Oral interviews will also be conducted.

2. Secondary sources: Data is to be obtained from journals, the

Lagos State Rent Control and Recovery of Residential Premises

Edict No. 6. 1997, unpublished dissertations of some students in

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Unilag and Yabatech, Newspapers, Textbooks, The internet and

notes from lectures.

1.8 METHOD OF DATA COLLECTION

The basic methods of data collection are through oral interviews and the

use of questionnaires. It is always difficult to give an adequate appraisal

of the residential property market at any given time, but due to the

number of lettings carried out by some estate firms in Egbeda, Ikotun,

Ipaja and their environs, inevitably coloured the judgment to some extent.

In order to strengthen the data collected from the estate firms with view

to greater objectivity, one would have spent more time on a general

survey of the market.

Responses were analysed from the answers given from the questionnaire

issued out and the answers were taken as a representative of the general

market situation. Also, analyses of responses from oral interviews carried

out within the areas mapped out for study were also as a premise for the

general market trend.

It is an observable fact that the rent aimed at in the open market is a

collective bargaining power of landlord and tenant without prejudice to

the rent passing for similar properties on the same zone. This has resulted

in making an average amount which is believed to be acceptable to both

the landlord and the tenant. In order to attain contained, it is necessary to

consult some estate firms to render some assistance by making some of

their letting files and documents available.

As it will be known that the rental property for any purpose is determined

by the interplay of the forces of demand and supply. Here, demand means

“Willing and Able” tenants concept. It is intended to be an effective

demand. This can be established if a property has been exposed in the

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market for a considerable length of time and the rent thus received is

different from the landlords or rather his agents expectation of rent

receivable on similar property.

With these important factors behind in mind, coupled with the fact that

there are several factors that call for the payment of rent quite below the

real rental value of such properties. It is necessary to advice the rent paid

for the various categories of residential accommodation in the town by

obtaining rental data for such properties. Thus, the approach is essentially

an open market exercise.

1.9 DEFINITION OF ACCOMODATION

Section 36 (1) of the Lagos State Rent Control and Recovery of

Residential Premises Edict No. 6. 1997 defines accommodation to which

the law applies as follows.

“Accommodation includes approving authorities designation by the

state as residencies regardless of user all building used as residences as

from the commencement of this Edict and all other buildings whether

not approving authorities but used as residences.”

Webster’s New World Dictionary of the American Language defines

‘accommodation’ as lodgings; room and board.

Further down, subsection (1) defines “premises” to include “a house or

building or any part thereof together with its gardens or other

appurtenances.”

This definition can be segmented into three. First, is building approved by

the building authorizes to be used for residence. The statue would apply

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to such a building irrespective of whether the building is used as a

warehouse other than residence.

Secondly, in anticipation of a situation where the landlords fails to obtain

building approval, the legislative further provides that the statue applies

to building used as residence whether or not the builder has obtained

planning authorities permit. Even where a building is designed and

approved as a shop, office or a place of worship but it is used as a

residence, the law would apply to it and where only part thereof is used as

residence, the law would apply to that part.

For the definition of “residence” we may adopt that preferred by the

authoritative Jowitt’s Dictionary English law, namely, “an abode where

an individual eats, drinks and sleeps or where his family or his servants

eat, drinks and sleep.”

1.10 THE MEANING OF LANDLORD

The Webster’s New World dictionary of the American Language defines

a landlord as a man who rents or leases land, houses etc to others. It went

further to say, he is a man who keeps a rooming house, inn etc.

1.10:1 STATUTORY DEFINITION OF LANDLORD

By the provision of section 36 (1) of the Rent Control and Recovery of

Residential Premises Edict (No.6) of 1997 of Lagos State, a “Landlord”,

in relation to any premises, means “the person entitled to the immediate

reversion of the premises or if the property therein is held in joint tenancy

or tenancy in common, any of the persons entitles to the immediate

reversion and includes:

The attorney or agent of any such landlord; or

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Any person receiving (whether in his own right or as an attorney or

agent) any rent from any person for the occupation of any

accommodation in respect of which he claims a right to receive the

same.”

1.11 DEFINITION OF TENANT

A tenant according to Webster’s Dictionary is a person who pays rent to

occupy or use land, a building etc. where a person is granted the use of

premises with the grantor retaining some provisionary interest in that

property; the grantee may either be a licensee or a tenant. A licensee is

one who is permitted to enter into or remain on the property of another in

such circumstances that if the permission were absent, the occupier would

be a trespasser.

A tenant on the other hand, acquires an estate in the property. He enjoys

the property as of right. Unlike the licensee who occupies at the pleasure

of the landowner, the tenant is entitled to the property and can retain

possession even in the face of the most vehement objection to it by the

landlord.

1.11.1 STATUTORY DEFINITION OF TENANT

Section 36 (1) of the Lagos State Rent Control and Recovery Premises

Edict No. 6 1997 defines a “tenant” as including a sub-tenant or any

person occupying any premises whether on payment of rent or otherwise

but does not include a person occupying premises under a bonafide claim

to be the owner thereof.

1.11.2 TENANCIES

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Normally, a tenancy could be taken to mean the same as a lease, but

under the law, tenancies are slightly different from leases in the sense that

it could be from week to week (weekly tenant), month to month (monthly

tenant), quarter to quarter or from year to year (quarterly or yearly

tenants) and where it is for 3 years and upwards, it implies a lease and the

law requires that the agreement must be stamped and registered. Tenancy

can go on for an indefinite period determined by either party giving

notice i.e. there is ‘no time certain’ in tenancies.

1.11.2.1 TYPES OF TENANCIES

(a) Tenancies for less than a year:

A tenancy from week to week or month to month or other short periods is

similar to tenancy from year to year except that the length of notice is

related to the periodic interval.

(b) Tenancy from year to year:

Tenancy from year to year is one which continues until determined by

notice at the end of the first or any subsequent years and may be created

by express grant or by necessary implication from the facts of the

occupation. A letting stated to be at a yearly rent is likely to be a tenancy

from year to year.

(c) Tenancy at sufferance:

A tenancy at sufferance arises where a person who has occupation by a

lawful title continues in possession after his title has terminated without

any statutory right to retain possession at the end of a fixed term and/or

without the consent of the landlord. He may be evicted at anytime after

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proper notice is given. At common law, a tenant at sufferance has no

liability to pay rent for the period holding over. Where rent is paid and

accepted, there may well be a presumption that the tenancy has become a

periodic tenancy. ADEJUMO vs DAVID HUGHES & CO. LTD (1989) 5

NWLR (PT.120) 146 C.A.

(d) Periodic tenancy:

Periodic tenancy is the commonest form of tenural system in Nigeria. The

terms which a periodic tenancy may be limited are principally - yearly,

quarterly, monthly or weekly. However, there is nothing to stop parties

from contracting for terms outside these conventional periods. In Land

settlement Association vs. Carr (1944) 2 ALL ER 126, a tenancy for a

period of 364 days and then for a further period of 364 days and

thereafter for a successive periods of 36 days is a periodic tenancy.

Periodic tenancy is in substances a tenancy at will because it subsists as

long as the parties consent to the arrangement.

(e) Tenancy at will:

In definition, Littleton said “tenancy at will is where land or tenements

are let by one to another, to have and to hold him at the will of the lessor,

by force of which lease, the lessee is in possession… the lessee is called

tenant at will, because he hath no certain or sure estate, for the lessor may

put him out at what time it pleases him”. (Quoted from McGarry and

Wade, “the law of Real property”, pg. 45. 4th Edition).

This involves tenure i.e. a relationship of landlord and tenant though

without a definite term.

(f) Sub-tenancy:

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A sub-tenancy is granted by a tenant where he transfers his interest in the

property to a third-party while retaining a reversion. If he transfers all the

interest he has in the property, the transaction is an assignment. For

example, if the tenant has an un-expired tem of 22years and he transfers

any term – even if one day lesser than that to a 3 rd party, that is sub-

tenancy. If he transfers the whole residue of the term, that constitutes an

assignment of the lease. A sub-tenancy may also arise where a tenant

sublets part of the premises while he retains possession of the remaining

part. It is immaterial that the sub-tenants term is of the same duration as

the tenants. Thus, a monthly tenant of two shops who grants a monthly

tenancy over one shop while he retains possession of the other thereby

creates a sub-tenancy. DABIRA VS ADELAJA (1973) 11 66 HCJ 97

(g) Relationship between landlord and sub-tenant:

Where the sub-tenancy is in contravention of the covenant against sub-

letting, as between the tenant and the grantee, the latter is a sub-tenant

and the transaction is valid as between the parties to it. But as between

the landlord and the sub-tenant, the latter is a trespasser where the

transaction is in breach of covenant against subletting.

Where the sublease is valid, the subtenant acquires exclusive possession

of the premises against the whole world including the landlord. The sub-

tenant derives his title from the tenant.

Where the landlord seeks to recover possession of premises which have

been sub-let, the sub-tenant is not entitled to a notice to quit. It is

sufficient that the tenant’s interest is terminated by a valid notice.

CHAPTER 2

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LITERATURE REVIEW

2.1 CREATION OF LANDLORD AND TENANT

RELATIONSHIP

The law relating to landlord and tenant relationship has come to be one of

the most extensive and far-reaching branches of law today. Its origin lay

in the dim past when man first started to distinguish between “thine” and

“mine” and though its significance may not be of equal importance in all

states, yet even in Russia where land belongs to the state, personal rights

in houses with the use of a small plot of land attached thereto and the

inheritance thereof, are recognized by law.

The relationship of landlord and tenant may be described as the

relationship which exists between the parties to demise and between their

respective assigns. The relationship is one of tenure, and although in

former times it existed between freeholds, where the owner of a freehold,

granted there-out a lesser estate of his freehold rights (such as an estate

for life). In practice at the present day, the relationship of landlord and

tenant arises where the owner of an estate in land grants to another an

estate lesser than the freehold and/or lesser than what he himself

possesses in the land

Generally, in most systems of law, and in particular in Anglo-American

systems, the relationship of landlord and tenant is created by contract,

expressed or implied, but it may also be created by statute.

The general rule in English Law is that the relationship of the landlord

and tenant arises when a lessor confers on a lessee exclusive possession

of the land demised for a period of time which is either definite or which

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can be made subject to a definite time limit by either parties. The lease

must have a certain beginning and certain end otherwise it will be invalid,

and it is this which marks the essential difference between a tenancy in

Customary Law and the one under English Law and the General Law of

Nigeria.

In Customary Law, the tenancy may be for a definite or indefinite period.

The emphasis in Customary Law is on the intention of the parties. It is

this intention which in a broad sense, determines the duration of the

tenancy. If, for example, it is intended that the grantee shall use the land

for growing seasonal crops, this is prima facie evidence that the tenancy

is meant to last for a short period or for a planting season, unless it is

expressly stated otherwise. If on the other hand, it is intended that the

land be used for building a dwelling house or for kola or cocoa plantation,

the tenancy will be presumed to be for a long period and indefinite in

duration.

Although the relationship in English law is not the same as it is in

Customary Law, it affords a useful basis of comparison. The relationship

may be described as that which exists between parties to demise and their

respective assigns. The relation may thus be simplified to mean that

which exists when a person (lessor or landlord) being possessed of an

estate or interest in real property, whether freehold or not has granted, or

is deemed to have granted, to another (lessee or tenant) an estate or

interest therein which is less than a freehold or less than the estate of the

grantor.

It is true to say that in Nigerian Customary Law, as in English Law, the

landlord always grants to the tenant an interest less than that which the

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landlord himself has in the land, but the above descriptions do not fit

squarely into the context of Customary Law not only because of the

absence of freehold but because the description fits other transactions,

like pledge of land, which do not give rise to the relationship of landlord

and tenant.

Thus:

“A term of years and the relation of landlord and tenant is created

whenever one person, called the landlord, confers upon another,

called the tenant, the rights to exclusively possession and/or take

into occupation of certain land for a period that is definite or

capable of definition and which is also less than the rights the

landlord holds so as to allow time for reversion.”

2.2 DEFINITION OF RENT

Rent is a retribution or compensation for the lands demised. It is defined

to mean a certain profit issuing yearly on land and tenements corporeal

and may be regarded as of a twofold nature: first, as something issuing

out of the land , as a compensation for the possession during the term;

and secondly, as an acknowledgment made by the tenant to the landlord

of his fealty or tenure.

Rent must always be a profit; but there is no occasion for it to be, as it

usually is a sum of money for spurs, capons, horses, corn and other

matters that may need be and occasionally are rendered by the way of

rent. It may also consist in services and manual operations as to plough so

many acres of land and the like, which services in the eye of law are

profits. This profits must also be certain or capable of being reduced to a

certainty by either party and must issue out of the thing granted and not

be part of the land, or thing itself, where in it differs from an exception in

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the grant, which is always part of the thing granted. i.e. rents are meant

for the occupation of land and not for the alienation of such land. But a

royalty payable to a landlord upon the bricks which are made out of a

brickfield is a rent, although it is not paid for the produce of the land,

which is periodically renewed, but for portions of the land itself, which is

gradually exhausted by the working.

There are at Common Law three sorts of rents:

Rent-service: it was so called because it had some corporeal

service incident to it as at the least fealty or demise. Every

copyhold rent was, and every rent reserved on a lease is a rent-

service.

Rent-charge: a rent-charge is where land is charge with a rent by

deed or will with power to distrain for the same, but the owner of

the rent has no reversion in the land: as where a person conveys to

another, land in fee simple, reserving certain rent payable there-

out, with a clause that if the rent be in arrear for a specified number

of days it shall be lawful to distrain for the same. In such case, the

land is liable to the distress, not of common right, but by virtue of

the clause in the deed, and therefore it is called a rent-charge

because in this manner the land is charged with a distress for the

payment of it. A power of distress is given by the Law of Property

Act, 1925, s. 121, in the case of any annual sum charged on land.

Rent-seck or barren rent: is in effect nothing more than a rent

reserved by deed or will, but without any clause of distress and

differs from a rent-charge only in being reserved without a clause

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of distress. A rent-seck cannot be issued out of a term of years. A

right to distrain for rent-seck as in the case of rents reserved upon

lease and also for rent of assize and chief rents, is given by the

Landlord and Tenant Act, 1730 (4 Geo. 2, c. 28).

Other forms of rents are:

Fee-farm rent: is a rent-charge reserved on a grant in fee, the name

is founded on the perpetuity of the rent or service and not on the

amount.

Rents of assize: are the certain established rents of the freeholders

and ancient copyholders of a manor, and which cannot be departed

from. Those of the freeholders are frequently called Chief-rents

and both sorts were indifferently denominated quit-rents, because

thereby the tenant goes quit and free of all other services.

Peppercorn rent: is a nominal rent not intended to be paid but

stipulated for on the view (which is not correct) that the reservation

of some rent is necessary to constitute a lease. It is most frequently

found in building leases in which it is usually reserved for the first

few years of the term only, during which the houses to be built will

be in course of erection and therefore not yet profitable to the

lessee.

Rack-rent: is a rent of the full annual value of the tenement or near

it. It is to be determined according to the value at the time of

letting.

2.3 RENT CONTROL

DEFINITION: According to Linn (1983), “Rent Control” means

regulatory tools imposed by the government to restrain rents where they

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have risen rapidly as a result of urban growth and the failure of housing

supply to keep up with the demand for housing. Its imposition is seen as

an attempt in ensuring that housing costs and benefits are more equitably

distributed, that circumstances which discriminate against the

underprivileged are eliminated and that the level of unfairness in housing

supply be reduced.

Rent Control can also be defined as a policy designed to protect tenants

from the cut-throat market rents which are as a result of the shortage in

supply of tenement housing. The policy usually involves the specifying of

the maximum rent that the landlord can charge on the tenant.

HISTORY: Rent standardizations as a form of regulatory policy is by no

means new. It was first introduced in the Europe during the First World

War. Rent Controls have continued to be applied in different forms as

dictated by the exigencies of the times in different countries. In Britain,

Rent Controls were in force for over 90years since 1914 and over this

period, more than eleven (11) legislations were being passed. In the

United States, Rent Controls were imposed as temporary measures

sporadically, first during the First World War, then during World War II,

which they endured till 1954 when it was lifted, but only to be re-imposed

again as an anti-inflationary measure in 1971 and 1972. Rent Control has

been a common feature in government housing policies since the early

forties in most of the third world countries including Nigeria.

TYPES: Generally, Rent Controls range from a rent freeze to

restrictions on the rates of rentals. As explained by GILBERT A. and

VARLEY A. (1991), rent freezes are usually introduced in four

situations:

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1. When the country enters into a war;

2. As a remedy for falling living standards;

3. At a time when the economy is suffering from severe inflation; or

4. As part of a general policy aimed at holding down wages.

2.3:1 RATIONALE FOR RENT CONTROLS

Explaining the rationale of any Rent Control Legislation, OPUTA J. S.

C. in ODUYE vs. NIGERIAN AIRWAYS observed that:

“The general principle of the Rent Acts has always been to guard

against the social and economic evils generated by shortage of

housing and the greed and rapacity of some landlords who

increase rent and try to evict tenants who refuse or are unable to

pay the higher rents demanded.”

The Rent Acts have throughout their history constituted an interference

with the Contract and Property Rights for a specific purpose, i.e. the

redress of the balance of the advantages enjoyed in the world of housing

by landlords over their tenants in era of shortage supply. The socialistic

school of thought opined that housing being a basic essential need of man

should not be left to the whim and caprices of the landlords. Thus, the

State owes it a duty, under the Social Contract Theory of her citizens, to

ensure that her citizens are properly sheltered in affordable and decent

accommodation.

2.3:2 RENT CONTROLS IN NIGERIA

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Shortly after World War II, the legislature in Nigeria realised that tenants

could not be left at the mercy of their landlords who naturally would want

to exercise their freedoms to the limits in the face of acute shortage in

housing supply. One of the obvious manifestations of the present urban

crisis in Nigeria is the soaring rents for residential accommodation. This

arises due to the gap between the demand and the supply of decent

residential accommodations. One of the main reasons for the anti-social

rents for residential accommodation in the major urban centres in the

country is this continuously widening gap between the supply and the

demand for houses at rents the masses can afford. Thus, the Federal

Government and the State governments promulgated different Rent

Control Edicts as applied to the different states.

2.3:3 EVOLUTION OF RENT CONTROL IN LAGOS

STATE

Factors which precipitated the enactment of the Rent Control Edict in

Lagos State in 1973 were the cumulative effect of certain socio-economic

problems following the aftermath of the Nigerian Civil War. People from

the various war-torn areas migrated to the less affected areas like Lagos

in view of starting life again, thereby aggravated pressure on the limited

available accommodations supplied. Thus, gave the landlords the

opportunity to hike rent. The level of inflation and government’s ill-

advised policy of making ex-gratia payment (UDOJI AWARDS) without

increase in goods and services led to the rise in the cost of the

consequential increase in the rent of residential properties. Absence of

concrete policy on housing despite the population explosion in urban

centres provided an opportunity for the exploitation with the landlords

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calling the bluff of prospective tenants and providing accommodation

only to the highest bidders.

The inability of the tenants in occupation of residential properties to pay

the cut-throat rent demanded by landlords led to a flood-gate of abuses of

the Common Law’s right to disdain for rent. Many tenants were victims

of the unfortunate incidents of distress for rent and lost valuable

properties of theirs as the painful price for their financial disability and

absence of legal protection.

The period also coincided with the dangerous trend mounting and

following from the greed of many landlords to insist on twelve or more

months rent in advance and as it dawn on landlords that such rent could

be gotten from many tenants in occupation. A new dimension was

therefore sought by these landlords using frequently the Recovery of

Premises all purely for their financial spur. Thus, the absence of defined

Legislation on the security of tenancy provided an opportunity for these

landlords to terminate tenancy without any legitimate impetus.

It was in the course of these crises that the first Rent Control Edict was

enacted in 1973. The edict established tribunals for the determination of

standard rents payable by tenants irrespective of the residential

accommodation and provided for security of tenancy, restriction of

ejection and distress for rent. This edict was consolidated by the Rent

Control and Recovery of Residential Premises Edict No. 9, 1976

promulgated during Brigadier General Mobolaji Johnson’s

administration. The rent then fixed were termed “standard and maximum

rent” for all categories of accommodation. Its spirit and subsequent

enforcement were geared towards easing pressure on tenants by reducing

the rent payable on residential accommodation.

21

The 1976 edict was later repealed by the Rent Control and Recovery of

Residential Premises (Amendment) Edict 1986. It was promulgated on

the 21st day of March, 1986. The edict only made amendments to sections

4 and 14 of Edict No. 9. 1976. Though, the third attempt was in 1986, it

never came into force until July 1996.

2.4 THE LAGOS STATE RENT CONTROL AND RECOVERY

OF RESIDENTIAL PREMISES EDICT NO. 6, 1997

In 1996, the Lagos State government revisited the area of Rent Control in

the state through the enactment of the Rent Control (Tribunal) Edict No.

9. However, this edict was non-operational due to the absence of the

necessary machinery needed for its administration and enforcement. It

was subsequently repealed along with its predecessor by the Rent Control

and Recovery of Residential Premise Edict No. 6, 1997.

Hence, if the different Rent Control Legislations in the past did not

change the attitude of the landlords nor protect the tenants against the

alleged greed advance of the landlords, what exactly was the new edict

meant to achieve?

2.4:1 FEATURES OF EDICT NO. 6 OF 1997

This edict was promulgated during Colonel Mohammed Buba Marwa led

administration and it became enforced on the 21st day of March 1997.

Although the edict is cited as “the Rent Control and Recovery of

Residential Premises Edict No. 6, 1997”, it only revealed its main

objective as an edict to control the rent of residential premises, also to

establish a rent tribunal and for other purposes connected therewith. This

22

objective falls short of the recovery of residential premises. This edict

thus, adopted in substance a long title which typical of Rent Control

Statutes. It also contains in addition to the provisions relating to Rent

Control, the procedure for the Recovery of Premises such as those

contained in the repealed Edict No. 9 of 1976 with its modifications.

The edict exhibits certain significant features with regard to Rent Control

Provisions and these are:

1. It established Rent Tribunals and defined their jurisdiction, power

and processing;

2. It prescribed in its schedule, Standard Rents in respect of the

different categories of residential accommodation available within

the different zones of the states as well as the mode of enforcement

of such standard rent; and

3. it contains other provisions meant as machinery that safeguards

toward the attainment of an effective Rent Control in Lagos State

2.4:2 APPLICATION OF THE EDICT

The edict applies generally to all leases and tenancies relating to

residential accommodation where the annual rental value is not more than

=N= 25,000. This can be deduced from the citation from the general

provisions of the edict and the regulations there-under. All other forms of

accommodation including commercial accommodation are obviously

excluded. The type of accommodation covered by this edict is defined by

section 36 (1) to include:

“....... residences so approved by the building approving

authorities designated by the state as residences regardless of

23

users, all buildings used as residences as from the commencement

of this Edict and all other buildings whether or not approved by the

building approving authorities but used as residences.”

From the above provision, if an accommodation is designated as a

residential accommodation and the Edict applies under one of these three

situations namely:

1. Where the accommodation is approved by a building authority for

residential purposes irrespective of its users;

2. Whereas from the commencement of the Edict, a building is used

as residence; or

3. Where a building is used as residence with or without the approval

of the building approving authorities, although the Edict applies to

residential accommodation mainly, the Military Governor may by

order direct that its provision shall only apply to residential

accommodation which annual rental value as at 1996 was not more

than =N= 250,000 or exempt the application of the Edict to any

particular accommodation or area altogether.

The Edict appears to cover all district in Lagos State for which rent as

regulated by virtue of the Rent Control (standard rent) order made by the

Governor in pursuant of section 1 of the Edict. Whereby an error of

omission, a district is not listed, the zone in which the nearest district is

located will apply. Thus, until an order is expressly made by the Military

Governor specifically exempting the application of the Edict to any

particular accommodation or area, such exemption cannot be implied

from an omission to mention a district in the existing order made by the

Governor. The only limitation on the Edict’s application for now is where

24

the annual rental value of the residential accommodation as at 1996 was

more than =N= 250,000.

2.4:3 THE ESTABLISHMENT AND THE COMPOSITION

OF THE RENT TRIBUNAL.

Section 6 of the Edict established a tribunal in each Local Government

Area, this tribunal consists a Chairman being a full time magistrate or a

part-time magistrate, with not less than five years post-call experience

appointed by the Military Administrator; while others are:

i. One Estate Surveyor and Valuer with not less than five years

post-qualification experience;

ii. Representative of the Landlords’ Association in the Local

Government Area; and

iii. A representative of the Tenants’ Association in the Local

Government Area.

The chairman and the Estate Surveyor and Valuer shall form a quorum. A

member shall hold office at the pleasure of the Military Administrator or

until resignation in writing, if the member is not employed in the public

service of the state. The Military Administrator may remove or appoint

any person as he may deem fit as chairman or member of the tribunal.

While the inclusion of representatives of each Landlords’ and Tenants’

associations in the composition of the tribunal may appear to be a

democratization process of attaining justice in matters relating to fixing of

standard rent acceptable to the two major interest concerned, namely:

a. Landlord and Tenant.

b. The prudence of retaining the provisions under the new

dispensation is open to question.

25

Apart from not stating any credential qualifying such representatives at

least, as fit and proper persons to serve as members of the tribunal, their

role under the new edict, where standard rents have been predetermined

and fixed is at best political, and at most, negative in practical terms.

Ascertaining, fixing and enforcing of standard rents by the tribunal

should normally entail a sound legal mind to interpret the law of the edict

and the assistance of an Estate Surveyor and Valuer as an assessor in

evaluating factors such as the nature of tenement, the nature and value of

infrastructure and other facilities.

The economic value and/or implications of improvements or repairs made

by the landlord or tenant on the tenanted apartment or remises – all of

which may influence the standard rent applicable now or in future. The

role of representatives of the Landlords’ and Tenants’ Associations, in the

determination of standard rent, remains conjectural from the four walls of

the edict.

This is not to say however, that such representatives do not have a role to

play in rent control since they represent the interest of the society the law

is meant to govern; but that is at the stage of law making. For example,

their input and involvement in debates at the formative stage of

legislation may go a long way in assisting the state in formulating

effective policy on rent control and consequently, a general acceptable

and workable system through legislation, such socio-political role

becomes irrelevant at the level of interpretation and enforcement of the

law and may be-cloud objectivity and hamper effective running of one

judicial machinery in practice.

26

The reasonability of such inclusion is further put into question when it is

realized that members shall be remunerated from the state coffers. With

the existence of about 20 (twenty) Local Government Areas in Lagos

State, the running expenses of the rent tribunal will be enormous and far

from being cost effective. Except the edict assign a functional role to such

representatives, which will justify the enormous expenditure of the state

on their remunerations and allowances, it is of my opinion, that the tax

payers’ money be saved from such an unjustifiable expenditure.

2.4:4 THE STANDARD RENT.

Fixing of standard rent for residential accommodation is not a new

phenomenon. The repealed Rent Control and Recovery of Residential

Premises Edict No. 9, 1976 made provision for same and further

proscribe the limit of rent in the schedule to the order under the law. But

the argument against the law had always been its static nature despite the

high inflationary trend and step decline in the value of our Naira over the

years. The repealed Rent Control (Tribunal) Edict No.6 of 1996 sought to

remedy this anomaly by vesting on the rent tribunal the exclusive

jurisdiction to fix standard rent in respect of residential accommodation

upon application by the landlord, the tenant or any other interested

persons while jettisoning the provision of the earlier law, which

empowered the tribunal to fix standard rent by order made under it.

However, Edict No. 6 of 1997 closes the 1976 model with modifications.

Section 2 (1) of the 1997 Edict makes the standard rent prescribed by the

military Administrator payable in respect of the type of category of

accommodation to which it applies.

27

Such standard rent may be reviewed upwards, say every three years or by

such other periods the Military administrator may prescribe and with a

margin not more than 20%. {See sections 2 (2) and (3) of the Edict}. For

purposes of ascertaining and fixing standard rents, the tribunal is vested

with the jurisdiction on application to it by the landlord or tenant or any

other interested persons, to determine standard rent payable in respect of

any residential accommodation let before or after the commencement of

the edict, (see section 7 (1) of the Edict) within the limit of the rent

prescribed in the schedule to the order made by the Military

Administrator in pursuant of the edict.

While the provision on rent review in the new edict may appear to be an

improvement on the law No. 9 of 1976 now repealed, it does not reflect

the economic realities of Nigeria. Rent must not merely be aimed at the

prevailing social circumstances but must essentially be aligned with

economic realities to be meaniful.

Taking a closer look at the edict and the order made there-under with

regards to standard rent would reveal the sole determination of

government to improve the social conditions of the poor masses by

ensuring affordable accommodation under the hopeless economic

situation over which the state has no control. The irony of the situation is

that while government is pegging rent review at 20% every three years,

there is no corresponding data to show the same or an almost equal level

of inflation.

The rate of inflation over the last one decade has been put at over 300%

(SOURCE: G. ONASODE: Economic Development in the past one

decade: Problems and Prospects.” U.K.); which is a far cry from

28

Government’s presumption on the measure of rent review every three

years.

It is also doubtful whether government can legislate effectively on private

accommodation when prices of other variables like land are left to drift

with the geometrical progression of inflationary trend. Private

accommodation cannot be the subject matter of government social

security, but like any commodity in the market, it is susceptible to the

driving force of inflation. That the standard rent may be unreliable after

all is supported by the provision to section 3 (1) of the Edict, which

enables the landlord to apply to the tribunal to vary the standard rent.

Any rent prescribed as standard rent under the edict shall supercede any

rent between the landlord and the tenant and any order made in respect of

such standard rent by the tribunal, shall bind all persons including the

landlord, tenant or mortgagee of such premises.

2.4:5 AGREEMENTS ON RENT

The edict made it unlawful for a landlord to accept rent on residential

accommodation in excess of the standard rent prescribed. {See section 3

(1)}. Although the edict enables the landlord to apply to the tribunal to

vary the standard rent, the ground for such application was not made

known.

The nearest provision on the subject appears to be section 34 of edict

which empowers the Military Administrator to make regulations inter-

alia prescribing the type and nature of repairs or fixtures in the premises

concerned to be taken cognizance of in computing a standard rent (See

29

Section 34 paragraph (e) of the edict). Pending a laid down criterion in

any such regulation, the criteria to be applied by the tribunal where there

is any application to vary remain a mute point.

Existing agreements on rent shall be construed in the light of the edict.

Where the rent agreed upon before the edict is higher than the standard

rent {Section 3 (2)}.

The tenant under an agreement for a rent less than the standard rent shall

continue to pay as from the commencement of the edict the same rent

until the tribunal makes an order varying the rent {Section 3(3)}.

Where a landlord accepted any rent in excess of the standard rent, he

contravened the edict through without penal consequences. In KIRIKIRI

COTTON LIMITED vs. DEWANI, the court in interpreting a similar

provision of the Ugandan Rent Restriction Ordinance of 1949, which also

contained no provision for recovery of such premium, held that the tenant

could recover excess rent paid. The court reasoned that the penalty for

breach of the provision was in the landlord who received the excess rent.

Per Lord Denning, also in FEYISITAN vs. WILLIAMS (1962) LLR

P. 122, an application to recover the excess rent could be brought by the

tenant even after the determination of tenancy.

2.4:6 VALIDITY OF LEASE TENANCY AGREEMENT

UNDER WHICH PROVISIONS OF EDICT CONTRAVENED

The question which appears to flow from the statutory prohibitions is that

of the validity of a lease or tenancy agreement under the parties who paid

or received rent in excess of the period prescribed by the statute.

30

In addition to the penalty imposed by the statute, can it be said that the

whole agreement itself is void? The position of the law as laid down by

the court of Appeal in FIRST BANK of NIGERIA LTD vs. PAN

BISBILDER NIGERIA LTD (1990) 2 NWLR (pt 1134) P. 647,

dealing with the same situation is that where a statute merely prohibits

certain class of contract and stipulates a penalty for the prohibition

without expressly providing whether or not the contract is void, it does

not follow if the contract is valid. Either of the parties to the contract can

rely on it in making a claim or enforcing a right there-under.

Also, a receipt of excess rent or illegal loan or premium under the edict

will not make the whole agreement illegal and the tribunal may apply the

Blue Pencil Rule to sewer the illegal aspect and enforce the contract. That

principle of law was formulated by the English court in a similar situation

in ALLION vs. SPICKERMANN (1976) C. H. pg. 58.

In that case, an assignee of a lease was made to pay premium by the

assignor who received same in contravention of the English Rent Acts

which rendered illegal all agreements to pay a premium in such

circumstances. When the assignor refuse to perform his part of the

bargain and the assignee brought an action for an order of specific

performance, the assignor resisted the claim on the ground that the

assignee’s claim was unenforceable as it arose from an illegal contract.

The court, applying the Blue Pencil Rule, serves the illegal aspect and

ordered specific performance of the contract. Thus, neither of the parties

can be precluded from enforcing his claim under the contract on the

ground that he was party to illegality.

31

2.5 IMPACT OF LAND USE ACT 1978 ON THE

RELATIONSHIP OF LANDLORD AND TENANT

Before the Land Use Act, 1978, which came into force on 29th March

1978, landowners in Nigeria enjoyed absolute title of the fee simple

estate. However, since the promulgation of the Land Use Act, all land

comprised in the territory of each state in the federation became vested in

the Governor of that state and such land is to be held in trust and

administered for the use and common benefit of all Nigerians.

Accordingly, former landowners have no more absolute title of fee simple

estate in the original sense. His holding will be for an indefinite period

unless and until a grant for a definite term is made to him. If a definite

term is granted to him, the term is referred to as a Right of Occupancy,

which can only be alienated with the consent of the Governor of the state

or the local authority depending on whether it is a statutory Right of

Occupancy. A statutory Right of Occupancy is granted or demand or

deemed to have been granted by the state Governor in respect of lands in

urban areas where as a customary right of occupancy is grated or deemed

to be granted by the local authority.

Deemed granted refer to developed land (see 2 91), 5 and 34 of the Land

Use Act 1978, also OGUNLEYE vs. ONI (1990) 5 N.W.L.R part 152

page 745). And land can be developed not withstanding that it has no

roads, building and other features set out in section 50 (1) of the land use

Act, 1978. The question whether a land is developed depends in the fact

and surrounding circumstances of each case in OBIKOYA & SONS

LTD vs. GOVERNOR OF LAGOS STATE, where the economic use

32

and utilities placed on the land influence the court to decide that the land

in issue as developed.

Within our given context, the landlord would qualify as the holder of the

Right of Occupancy, either statutory or customary. It now seems that the

issuance of a certificate of occupancy to a landlord as evidenced of a

grant were a piece of land where a building is executed would operate as

a head and the landlord as the head lessor may grant a private lease to the

tenant. This was what happened in the case of AGUDA SAWA vs.

MOHAMMED (1974) N. R. W. L. R at 159 where the holder of a right

of occupancy allocated and building both houses erected there to operator

on payment of rent, and the court held that the grant created a lease and

therefore a relationship of landlord and tenant. A customary right of

occupancy takes priority over a statutory right of occupancy unless it was

previously revoked.

2.6 MERIT AND DEMERITS OF THE EDICT

MERITS:

(1) Cheap Housing : In terms of cheap housing, Rent Control Edict

assist the tenants to any less for what he uses, the maximum rent

which is ceiling rent is normally less than full market value.

This makes it possible for tenants to enjoy a subsidized rent for

below the capital or market rental value.

(2) With the edict pegging the rate increases at 20% over a period

of three (3) years, there is likelihood of stability in rent

beginning with the sitting tenants.

33

(3) It helps the tenants to perform their obligation under the lease

agreement by carrying out repairs without wasting much time.

(4) People are able to build their own houses because of unforeseen

future

(5) The law protects the tenants more than the landlord though the

landlord’s title is left intact

DEMERITS

(1) The edict discourages investors from investing in residential

property in that the incentive of the developer would be killed,

whereas demand for residential accommodation continues to

rise i.e. the ability and incentive to develop is reduced and the

investors fail to maintain and put their property in good and

tenantable condition.

(2) Landlords are not ready to lease their vacant house as

residential property anymore due to the long time litigation

takes.

(3) The edict discourages maintenance in building, because the

owner of different residential properties will no longer carry out

maintenance at regular intervals on their property which leads to

total obsolete and increase in the price of outgoings.

(4) Black market is created in that tenants will not bother

themselves about the edict when they desperately seek for

34

residential accommodation because of high demand for

residential accommodation. More so, it constitutes effective

demand of houses for sale thereby artificially raising the sale

price.

(5) There will be problem of obsolescence in that owners of

residential accommodation will no longer maintain their

property with the meager rent they now collect due to the edict,

and the maintenance culture will fall drastically.

(6) It discourages new letting and so worsen the position of

potential tenant who may be willing to pay their rent that may

be obtained in the open market.

(7) The edict reduces the supply of rented houses promptly by

retarding new construction of house to let. It discourages

conversion and sub-letting, also the artificial incentives of given

into sell vacant houses of owner occupation. The edict

discourages conversion of houses because of the owner –

occupier.

(8) The edict leads people to circumvent the law in that most

people especially the potential tenant will be willing to pay

more to obtain an accommodation.

(9) The edict makes estate agency to be at its lowest ebb.

(10) The edict has not taken into consideration the economic

situation of the country. This makes the carrying out of repairs

35

difficult because the price of building materials has not been

taken into consideration i.e. management.

(11) It discourages the movement of labour from one locality to

another. Tenants take advantage from its protection and refuse

to move from where they have established rights.

(12) It exempted some specific areas or locality from the edict; this

makes the landlords in such areas or localities to fix any

arbitrary rents i.e. giving preferential treatment to some people.

(13) The edict inflates the demand of residential properties. It also

leads to increase in demand and congested accommodation

through conversion of kitchen and garages into rooms. This is

due to the fact that there is no new development of residential

properties thereby supply for accommodation will be reduced.

2.7 EFFECT OF THE RENT CONTROL AND RECOVERY

OF RESIDENTIAL PREMISES EDICT ON LANDLORD

TENANT RELATIONSHIP

The Lagos State Rent Control Recovery of Residential Premises Edict

No. 6 of 1997 was enacted due to the great need to control and

regulate prohibitive rent that characterised the residential property

market.

In a relationship where the landlord and tenant agree to share the

responsibilities of estate management to their mutual advantage, the

usefulness of the arrangement is largely confirmed by its long history

36

and continued economic effectiveness but inevitably there are

weaknesses.

Changes in economic conditions can leave rents abnormally high or

low and constant problems must be faced where the return yielded by

a property is so low that it satisfies neither the landlord nor the tenant.

It is prominent that is very common in many landlord and tenants

relationships. Even many believe that the rents are increased

arbitrarily by the landlords without due consideration to the interest of

the tenants.

Due to the belief and some others, members of tenants have resorted

(apart from recourse to the law courts and lawyers for assistance) to

other ways of checking the excesses of the landlords. One of such way

is holding the landlord to ransom by refusing to pay rent. This action

may tie down the expected return on the property, which may go for

other areas of investment.

It is very unlawful for a landlord to forcibly eject tenant upon his

refusal to pay rent, the landlord has to go through the due process of

the law. The action of the tenants contradicts the agreement made with

the landlord at the beginning of the lease that he shall pay rent as at

when due.

As in section 13 which says “when and as soon as the term or interest

of the tenant of any premises determines or has been duly determined

by a written notice to quit in forms B, C or D, in schedule 1 of this

edict, such tenant or if such tenant does not actually occupy the

premises or only occupies a part thereof is actually occupies, neglects

37

or refuses to quit and deliver up possession of the premises or any part

thereof, the landlord of the said premises or his agent may cause the

person so neglecting or refusing to quit and deliver up possession to

be served with a written notice as inform signed by the landlord or his

agent, of the landlord’s intention to proceed to recover possession or a

date not less than seven days from the date of service.”

The rent control Edict led to the emergence of a black market because

the landlord no longer exposes their properties to the open market for

fear of being prosecuted.

This means there is continuous reduction in the number of dwelling

for letting as a result of the Edict.

Rent standardisation by reducing landlord’s return from their

investment, depletes the proportion of rents reserveable for

maintenance purposes. In fact, it could lead to total negligence of the

dwellings as landlords are unable to pay property professionals to look

after their investment and may even cease to carry out maintenance

work altogether. This is because landlords will try to maintain their

real income level by withdrawing from repairs and maintenance.

The result is a reduction of the quality of the existing stock of

dwellings especially in extreme cases and in old dwellings where

routine maintenance costs may even exceed the level of the controlled

rent received. A survey carried out in India showed that landlords

failed to perform maintenance forcing tenants to choose between

paying for repairs themselves and living in substandard conditions

(World Bank Report)

38

The rent control edict has created a distribution on the property market

which led to under-valuation for official purpose, this reduce the

revenue to government from tenement rates, withholding taxes,

consent fee and either taxes on properties.

Legislation on rent control usually includes provision for security of

tenure and the aim is to protect primarily, the interest of the tenant and

secondarily those of the landlord. Usually, the relationship between a

landlord and the tenant is regulated by a lease agreement. A lease

agreement is mutually entered into by both parties to guide the

conduct of the lease.

Rent control usually has the power to undermine the terms of the lease

agreement especially in favour of the tenant and this usually causes

friction between the landlords and their tenants. This is the why there

are endless litigations of aggrieved tenants or landlords taking the

other party to the tribunal.

The implication of this is that controls do not provide a conducive

environment under which the terms of the lease agreement can be

executed.

Rent controls by setting up rent tribunals seem to transfer some of the

duties of the property manager to the rent tribunals. The provision of

the edict can also make it difficult for management objectives to be

achieved. The vesting of power to determine rents passing on

properties, for example, would mean that the property manager cannot

determine value based on the present condition and motives of the

owner and according to features of the property.

39

In the same view, the tribunals (especially the 1997 Edict) are given

the right to collect rents and confiscate rents on the landlord’s refusal

to collect them. They are also supposed to settle disputes between

landlords and tenants. All this appear to compete with the property

manager’s scope as some of his major functions are being performed

by the tribunals.

CHAPTER 3

RESEARCH METHODOLOGY

3.1 INTRODUCTION

This chapter outlines the methods employed generally in carrying out this

research work and would include major hypothesis, research variables,

sampling frame, data analysis procedure and method of data collection.

3.2 MAJOR HYPOTHESIS

40

HYPOTHESIS 1: There is a significant relationship between Landlord

and Tenants.

HYPOTHESIS 2: the Rent Edict has created a soar relationship between

the Landlord and Tenants.

3.3 RESEARCH DESIGN AND RESEARCH VARIABLES

This research adopted an explanatory approach in analyzing the data and

resources obtained from the landlords and tenants. The variables in this

research are:

- Dependent Variables

- Independent Variables

An Independent variable is the presumed cause of the dependent variable,

the presumed effect. The independent variable is the antecedent while the

dependent is the consequent. The dependent variable is the variable

predicted to whereas the independent variable is the one predicted from.

In this study, the Rent Control and Recovery of Residential Premises

Edict No. 6 of 1997 is the independent variable while the Landlords and

Tenants are the dependent variables.

3.4 RESEARCH AREA

This research work covers a selected Local Government Area in Lagos

State were medium and low income housing are rampant. The areas, thus

selected out of this Local government Area, are Ikotun, Ipaja, Egbeda and

their immediate environs.

41

Some of these areas are said to be slum areas or developing slum areas,

though with gross commercial activities. Lagos State is already confirmed

to be a slum. Alimosho is still one of the areas with most residential uses

with the presence of low and medium income housing in the State.

3.5 CHARACTERISTICS OF THE STUDY POPULATION

The population used for the purpose of this research was divided into two

major groups.

1. Low income properties

2. Medium income properties.

The questionnaires administered are in two folds. The first group is the

landlords who are mainly the reason for the enactment of these edicts

simply because of their unlawfulness and putting of tenants at their

mercy. The other group is the tenants who are the most favoured by these

edicts.

3.5:1 SAMPLING FRAME

On the whole, eighty questionnaires were administered. Forty to the

landlords and the remaining forty to the tenants. This consists of both

male and female correspondents. The questionnaires were administered

personally to ensure and achieve maximum response.

3.6 METHOD OF DATA COLLECTION

For the accomplishment of this work, the necessary information was

obtained from the following sources.

PRIMARY SOURCES

42

Primary data was collected from the landlords and the tenants. The

questionnaires were used for both groups to obtain the required

information as well as achieve best results. Oral interviews were also

conducted with some practicing Estate Surveyors and Valuer with a

view to eliciting more information relating to residential properties in

the areas of study. This has helped in highlighting the problems and

provided a basis of analysis that will guide the recommendation and

conclusion.

PERSONAL OBSERVATION

This was carried out by visiting the areas of study, identifying the

medium and low income properties.

SECONDARY SOURCES

The use of text books, journals, thesis and newspapers was employed.

Also, information from the internet was obtained. All these helped in

examining the options and also supplied a background and foundation

on the landlord – tenant relationship.

3.7 PILOT SURVEY

A pilot survey was carried out to pre-test a small sample area and conduct

interviews. These interviews were carried out with some landlords and

tenants in the study areas and this enabled the modification of the

questionnaires.

3.8 SAMPLING METHOD EMPLOYED

For the purpose of this study, the selection of the areas and respondents

was carried out using the judgmental Sampling method or Technique.

43

3.9 PROCEURE FOR DATA ANALYSIS

In analyzing the data collected, inferential statistical tools of analysis

were used such as correlation. Also the uses of descriptive statistical tools

of analysis were employed such as bar charts and pie charts.

The interpretation of analysis would include a tie-in between the stated

problem and the analysis of the data collected so as to provide the crucial

capstone to the research.

The hypothesis would also be tested with statistical tools of analysis and

the responses. The use of percentages would be included to prove some

points when responses are being analysed.

3.10 LIMITATION OF METHODOLOGY

The success of any enterprise involves the identification of the critical

aspects of the dynamic environment, making intelligent forecasts and

utilizing these forecasts. All of these involve research, which means

continued survival for numerous factors tend to hinder research efforts.

Some were encountered by the researcher such as:

Secrecy:

Many of the respondents that were met had a special liking for secrecy

especially the tenants. They seemed to assume that the research was a

form of probing their landlords or just ‘nosing around’. Often,

information relating to factors such as age, occupation, income and in this

case rent was resented and those who later divulge the information did it

reluctantly.

Time Factors:

44

This also played its role as some landlords and tenants did not have much

time required by the researcher to meet appointments.

CHAPTER 4

DATA PRESENTATION AND ANALYSIS

45

This chapter presents analysis and discusses data obtained through the

questionnaires in order to determine the relationship due to the effect of

Rent Control.

4.1 ANALYSIS OF LANDLORD’S QUESTIONNAIRES

As stated earlier, one of the objectives of this edict is to ascertain the

attitudes of landlords to their tenants and also to the effect of the decayed

Rent Control Edict of Lagos State. 40 questionnaires were rolled out but

only 22 responses were received. To facilitate the analysis of data

collected, the following variables were adopted.

4.1:1 EFFECT OF RENT EDICT COLLECTED FROM

RESIDENTIAL PROPERTIES

The following results were obtained from the survey representative of the

overall rental trend in Alimosho Local Government Area for the various

density zones based on rental values. Also, the information below is

provided through field survey, interviews and confirmation from Estate

Agents/firms.

Table 1: RENTAL VALUES OF RESIDENTIAL PROPERTIES

IN DIFFERENT DENSITY ZONES IN ALIMOSHO L. G. A.

Accommodation High-Density Medium-density Low-Density

1) 1 bed room tenement

2 bedroom flat

2) 2 bedroom flat

3 bedroom flat

4 bedroom flat

N12, 000 – N14, 400

N24, 000 – N30, 000

N60, 000 – N80, 000

N80, 000 – N120, 000

N100, 000 – N150, 000

N18, 000 – N20, 400

N36, 000 – N42, 000

N75, 000 – N100, 000

N100, 000 – N200, 000

N120, 000 – N250, 000

N24, 000 – N30, 000

N48, 000 – N60, 000

N100, 000 – N170, 000

N150, 000 – N300, 000

N150, 000 – N300, 000

46

3) 3 bedroom duplex

4 bedroom duplex

4) Detached house

N120, 000 – N200, 000

N150, 000 – N250, 000

N250, 000 – N350, 000

N170, 000 – N300, 000

N200, 000 – N550, 000

N300, 000 – N550, 000

N200, 000 – N450, 000

N250, 000 – N550, 000

N250, 000 – N1,300.000

Source: Data was gathered from consultation from property agents in

Alimosho L.G.A

From the above table, it is obvious that the Edicted rents are no

longer on force. Rents and prices of accommodation are mostly governed

by the market forces of both the demand and supply. This has been a

great disadvantage mostly on the occupiers/tenants of this houses.

Out of the twenty-two (22) responses from the landlord, nineteen (19) or

86.4% were of the opinion that the rent edict then had a negative effect on

the rents collected from their properties. Two (2) or 9.1% said that rents

were not affected, while the remaining one (1) or 4.5% said he couldn’t

answer that because his property was not existing then but felt that the

landlords then were never happy about the edict then. The last can

therefore be also termed as not affected.

EFFECT OF RENT EDICT ON RENT COLLECTED FROM

RESIDENTIAL PROPERTIES AT THE TIME OF THE EDICT’S

EXISTENCE

47

1915

10

5 Negative effect not affected

4:1:2 CONDITIONS OF BUILDINGS DURING RENT EDICT

The rents of the survey shows that 12 or 54.6% said that the

condition of their buildings at the time of the edict were bad, 8 or 36.4%

said their properties were in fair condition and 2 or 9% said their building

were well maintained. It was also discovered that those who claimed that

the rent collected was barely enough to carryout repair and maintenance

did not comply with the controlled rent and that they did charge the

existing market rents then.

CONDITION OF BUILDING DURING RENT EDICT

15

10

5

0 Poor Fair Good

4:1:3 RESPONSIBILITY FOR REPAIRS AND MAINTENANCE

The survey shows that eleven (11) or 50.3% of the landlords were

reliable for repairs, tenants five (5) or 22.7% and join effort between the

48

landlords and tenants are four (4) or 18% while agents took the remaining

2 or 9%.

4:1:4 RENTS REVIEW AND ITS DETERMINATION

The survey shows that most of the landlords did not have any lease

agreement. Thus, there was no room for the inclusion of rent review. That

they just increased their rents anytime and not thinking of the

consequences because of the tenants need for shelter.

About 18 or 82% said they determined the review rent, 2 or 9%

said it was the usual work of the caretaker (agent) and the remaining 2 or

9% said it was a joint decision between them and their caretakers.

20

18

10

2

Landlord Agent Landlord/Agent The survey also made it known economic forces of demand and supply

normally brought about the incessant review of rent

4:1:5. PROBLEMS ENCOUNTERED AS A RESULT OF THE

RENT REVIEWED AND HOW THEY WERE

SOLVED

All the landlords claimed they were always faced with one or two

problems due to the review and this being that they failed to inform their

tenants before any rent review.

49

Solution: Eleven (11) or 50% claimed they negotiated with their tenants

when rent was increased, 5 or 23% claimed they go to

court/tribunal/Arbitration and 6 or 27% ejected or forced out their

tenants.

4:2 ANALYSIS OF TENANTS QUESTIONNAIRES

Twenty-six (26) questionnaires were reviewed out of the forty

questionnaires that were administered. Thus, the following variables were

adopted to analyze these questionnaires.

4:2:1 SCHEDULE OF RENT PAID

Twenty-three (23) or 88% of the sampled surveyed said they had

disagreement with their landlords and/or agents. Thirty-seven percent

(37%) or nine of these disputes arose from rents increased above

controlled rents or otherwise, forty-four percent (44%) or eleven(11)

arose from insistence on rent collection and advance payments and nine

percent (9%) or three (3) from inability to carryout repair works. When

asked whether they sort to rent tribunal for settlement, majority said no

for the fair of being kicked out being out of favour with the landlord who

may refuse a renewal of the lease. Some also said they did not trust the

tribunals in resolving disputes. On the other hand, a good member of

those interviewed had been to the tribunal for disputes. They were of the

opinion that these tribunals were capable, although it usually takes a long

time before the disputes were resolved.

50

4:2:2 CONDITIONS OF BUILDING DURING THE EDICT

Twenty (20) or Seventy Seven percent (77%) of the respondents

said the present condition of buildings were poor while six (6) or twenty

five percent (23%) said the buildings were in a fair state. On the likely

cause of this situation, sixty-five (65%) or seventeen (17) were of the

opinion that the controlled rents could not affect much repairs considering

the biting nature of inflation in the country and the prices of building

materials, thirty five percent (35%) or thirteen (9) did not agree that the

rents were not enough for maintenance purposes but rather they describe

these poor building conditions to the selfish nature of landlords and their

lack of willingness to carry out maintenance.

4:2:3. RESPONSIBILITY FOR REPAIRS AND

MAINTENANCE DURING THE EDICT AND ITS

EFFECTIVENESS

Sixty three percent (63%) or nineteen (17) of the respondents said

the landlord was responsible for repairs, nine (7) or thirty percent (30%)

for the tenants while two (2) or seven percent (7%) were for joint

maintenance between both the landlord and tenants.

Twenty three (23) or 88% of the respondents were of the opinion

that repairs were not effective. They said that landlords have refused to

carry out repairs, the tenants do most of the repairs despites that it was the

landlord’s responsibility. Eight percent (8%) or two (2) are of the

opinion that repairs were fairly effective. It was however discovered that

this second group are those who carried out joint repairs with their

landlords. One (1) or four percent (4%) said repairs were very effective.

51

88%

4% 8%

Ineffective

Very effective Fairly effective

Effectiveness of repairs during rent edict

4:2:4 RENT REVIEWED AND ITS DETERMINATION

One hundred percent (100%) of the respondents showed that there was a

rent reviewed clause in the lease agreement and admitted that though the

clause stated that rent could be increased at any time, they accepted not

thinking of the consequences because of their desperate need for shelter.

Eighteen (18) or sixty nine (69%) shows that rent was jointly

reviewed by both the landlords and their agents, while twenty one percent

(21%) or eight (8) said the landlord review rents.

Eighty eight percent (88%) or twenty three (23) of the respondent

said they were mostly not informed (notified) of this rent reviewed, while

twelve percent (10%) or three (3) were notified.

4: 2: 5 PROBLEMS ENCOUNTERED AS A RESULT OF THE

REVIEWED RENT

One hundred percent (100%) of the responses shows that problem

always arise when rents were being reviewed.

4: 2: 6 SOLUTIONS TO ENCOUNTERED PROBLEM

52

Fifty percent (50%) or (13) thirteen of the responses show that

when rents were increased and tenants were also unable to pay, they

negotiate and plead with the landlord or their agents. Thirty percent

(30%) or eight (8) went to court (tribunal) while twenty percent (20%) or

five (5) were ejected or forced out.

4. 2: 7 ANY IMPROVEMENT TO BUILDING AFTER RENT

REVIEW?

Eighty eight percent (88%) or twenty three (23) show that no

repairs or improvement works were carried out, while twelve percent

(12%) or three (3) shows that repairs were carried out.

4: 3 TEST OF HYPOTHESIS

As earlier stated in this study, the research hypotheses are:

Hypothesis 1: There is one significant relationship between landlord

and this tenant.

Hypothesis 2; The rent edict has created a sour relationship between

the landlord and tenants

The researcher tends to compare above research hypothesis with

the findings and the result of the analysis. This comparism is expected to

show whether there is a relationship or not and thus, the nature of the

relationship if any. The above hypothesis will have to be taken separately

and explained before any valid conclusion are be made.

4: 3: 1 HYPOTHESIS I

53

The testing of this hypothesis will be based on the following

analysis criteria:

1. Landlord/Agent

2. Landlord / Tenant

3. Landlord

4. Tenant

Landlord and tenant

relationship

Landlord/

Agent

Landlord Tenant Landlord/

Tenant

Responsibility for repairs and

maintenance

2 11 5 4

Determination of rent

reviewed schedule of rent

paid.

4 18

Landlord/Agent mean (x) = ∑ (x/n) = 6/2 = 3

Landlord /tenant mean (x) = ∑(x/n) = 4/12 = 2

Landlord mean (x) = ∑(x/n) = 29/2 = 14.5

Tenant mean (x) = ∑(x/n) = 5/2 = 2.5

:- Landlord / Agent – landlord /Tenant = 3-2 = 1

Landlord – Tenant = 14.5 – 2.5= 12

As demonstrated above, the means for landlord/agent, landlord/tenant,

landlord and tenant are 3, 2, 14.5 and 2.5 respectively. The differences

between the means (i.e. Landlord/Agent – landlord/Tenant and Landlord-

tenant) are 1 and 12 respectively.

54

The implication of this is that threw is not only a relationship

between the landlord and the tenant but there is also a positive

relationship.

The case would have been otherwise if the difference derived at

were with negative values. It would have shown no relationship existing

instead.

4: 3: 2 HYPOTHESIS 2

Testing of this hypothesis will be based on the following variables:

1. Not affected at all (NAA)

2. Now much easier (NME)

3. Now more difficult (NMD)

Table 3:

Landlord and tenant relationship NAA NME NMD

Effect of edict on rent collected 3 - 19

Effect of edict on building condition 8 2 12

Effect of edict on landlord 22

Effect of edict on tenant (problem with landlord) 3 23

Effect of edict on building maintenance and repairs 2 1 23

Effect of edict on rent review (problem encountered) - - 22

Mean (NAA) = ∑(x) = 16/6 = 2.67 = 2.7

n

Mean (NME) = ∑(x) = 3/6 = 0.5

n

Mean (NMD) = ∑(x) = 121/6 = 20.16 ≈ 20.2

n

55

: - Mean (NMD) – Mean (NAA) = 20.2 – 2.7 = 17.5

Mean (NMD) – Mean (NME) = 20.2 – 0.5 = 19.7

This shows that the hypothesis is true and that the edict has a negative

effect on the landlord and the tenant and also the relationship between

them.

4: 4: LANDLORD’S QUESTIONNAIRE

The responses from the landlord’s questionnaires indicated that

since the enactment of the edict and till the edict came into extinct, the

landlord had had a sour relationship with his tenant. This is simply

because the edict never gave the landlord the power to review rent at any

time they desired. Thus, they refused to co-operate with their tenants,

who felt they were being favoured by the Edict.

4: 5: TENANT’S QUESTIONNAIRE

This analysis is revealed that the tenants had highly been favoured

by the edict by the edict in return created a barrier between these tenants

and their landlords. The tenants claim that the landlord’s complaints were

that they could do nothing with the “meagre” rents passing on their

properties as result of the Edict.

56

CHAPTER FIVE

5: 1: CONCLUSION

The Lagos State Rent Control and Recovery of Residential

Premises Edict (1997) was an imperfect copy work. The Edict was a mere

adaptation of Cap 167 of 1994 without any attempt to take up for its

short-comings. The edict was drawn up in haste without regard to the

prevailing socio-economic problems on the country as a whole. It had

repeated the mistake of the post legislation ought to reconcile the

conflicts of interests made complex by inflation in justifiably against the

landlords as if the government were at war against them then. No wonder

the edict never lasted for long.

The truth is that there is no successful rent Control Legislation

where there is shortage of accommodation to meet the very high demand

by the populace. It is time that Government stopped under-estimating the

importance of social security particularly housing in the scheme of

people’s survival. It thus can be said that under a rent Control situation,

maintenance by landlords is discouraged although some of these costs

were shifted to the tenants.

Hence, this shift of maintenance responsibility reduces the benefits

(if any) to be enjoyed in Rent Control. The building conditions are bound

to deteriorate simply because they were not being maintained, thereby

lives of the tenants are endangered, thus reduction in the useful of this

buildings too.

57

With no iota of doubt, a greater number of residential properties

have been seen to unfit, inhabitable and in serious state of disrepair

especially. This is most evident in high density areas due to the low rents

reviewed from these properties.

The inadequate residential accommodation foe letting in Lagos

State can be attributed to the negative effect of the Rent Edict on

residential accommodation. The strength of private landlords lies n the

excess demand for residential accommodation and the limited stock

available are allocated to the highest bidder thereby discriminating

against the poor who edict is intended to protect.

Presently, it could be understood that the edict is extinct and that

the open market forces commands prices of the interest in these

properties. Hence, the absurd prices charge as rent and on sales making

accommodation very unaffordable.

In conclusion, having known the flaws of the edict, it can be

revisited and used to correct most of the wrongs in accommodation

provision in the state.

5:2: RECOMMENDATION

To improve the state of having provision in Nigeria (Lagos),

private initiative should be highly encouraged and at the same time the

masses in mind.

Thus, the cut throat rents must be checked and at the same time

improving landlord and tenants relations hip. The following

recommendations are made:

58

1. Government should create more Government/Public Housing

Schemes considering the various levels of income groups so as to

compete with the Private sector’s housing development.

2. The use of local building materials should also be encouraged and

this would reduce the cost of construction and the government

should show a leading example.

3. The government can also subsidizes the cost of building materials

so as to increase the level of construction, hence more lettable

accommodation supply.

4. The Private investors should be more encouraged in housing

provision.

5. Land allocation and documentation should be made more easy,

cheaper and accessible.

6. The government also should have to consider housing of her

citizen with a higher priority and more or larger percentage of the

budget should be to housing yearly.

7. Access to land is a major hindrance to housing. Thus, the Real

Estate Sector should be deregulated to enhance access to land.

8. The government should also discourage Rural – Urban migration

which is one of the housing problems creator in states like Lagos.

This can be achieved by meaningful developments created in the

rural areas, hence reducing crowds at the cities.

9. also access to adequate credit facilities to facilitate more ownership

of houses by the masses.

10. Also an association of local landlords and tenants can be

encouraged where matters affecting them can be ironed out,

thereby creating a better relationship between landlords and

tenants.

59

11. In the case of rent control, any standard rent to be fixed should take

account of the age of the building, standard of development and its

maintenance, including the state of repairs.

12. Section 4 of the 1997 edict should be reviewed to address the case

of advance rent in view of the high cost of management and

administration of tenancies as well as the low purchasing power of

the naira.

13. Claims should be allowed for the recovery of cost of repairs and

the time it will take to carry-out such repairs in action of

possessions. This being the case of building materials is not

negligible neither is the time value of money to be

discountenanced. Similarly, outstanding bills (NEPA), tenement

rates, water rates, telephone bills where applicable, consumed by

tenants should be recoverable in the same action.

All these services are billed on the consumer at a particular

location and the bill will continue to accumulate against that residential

unit notwithstanding the fact that the tenant had left.

Above all, it is only when there are in existence sufficient

accommodation to meet the high rate of demand that any move to control

rent can be meaningful. A person who is fortunate to get accommodation

after a long arduous search for it will rather abide by the “living laws”

rather than abide by any legislation in existence and this lead to the

existence of the 1997 Edict.

REFERENCES

1. PROBLEMS OF PROPERTY MANAGEMENT EXAMINATION

OF LANDLORD AND TENANT COVENANTS BY D.V.F

60

OLATERU OLAGBEGI. Being a paper read at a national

workshop on THE PRACTICE OF ESTATE MANAGEMENT IN

NIGERIA in 1996.

2. WHY LANDLORDS CANNOT EJECT TENANTS ARBITRARY

by AKINTOLA ALIU JIMOH, RENT JANUARY, 1992

3. HOUSING IN NIGERIA (A book of readings) EDITED by POJU

ONIBOKUN (FNITP), Professor of Urban and Regional Planning

NISSER Ibadan, 1985 pg 133 – 142

4. NIGERIAN LAW OF LANDLORD AND TENANT BY

ONWUAMAGBU, MOSES, LAGOS; AFRICAN UNIVERSITY

PRESS. 1960

5. LAW OF LANDLORD AND TENANT – Interpretative essays by

EMEKA CHIANU (1994) OLIZ Publishers.

6. LAW OF LANDLORD AND TENANTS BY LIONEL A;

BLUNDEL AND V.G. WELLING 26TH ED. VOL. 1 SWEET

AND MAXWELL LTD, LONDON. 1960

7. THE Lagos STATE RENT CONTROL AND RECOVERY OF

RESIDENTIAL PREMISES EDICT (1997): AN EVALUATION

BY I.0 SMITH, 1998.

8. MODERN PRACTICE JOURNAL OF FINANCE AND

INVESTMENT LAW. Vol. 2 No 3 1998.

9. BASIC RIGHTS OF TENANTS UNDER THE NIGERIAN LAW

Vol. 1 by EMMANUEL EGBURUONU (1994).

10. LANDLORD AND TENANT RELATIONSHIP AND THE

PROBLEM OR RENT REVIEW IN LAGOS BY OKWA, J.C.

Being a project submitted to Dept. of Estate Management 1995/96

session.

11. RENT CONTROL AND RECOVERY OF RESIDENTIAL

PREMISES EDICT NO 6 OF 1997

61

12. THE IMPACT OF RENT CONTROL ON THE MANAGEMENT

OF RESIDENTIAL PROPERTIES BY ITUA, O.M. (1998) being

a B.Sc. dissertation submitted to the Department of Estate

Management, University of Lagos.

13. STANDARDISATION OF RENT; THE ECONOMIC

IMPLICATIONS by OMIRIN M.M. (1998) being a paper

delivered at a Workshop/ Seminar organized by the Faculty of

Law, University of Lagos.

14. THE GUARDIAN, Monday April 7, 1997 (pg. 9 and 27)

15. THE RENT EDICT OF LAGOS STATE BY UTUAMA A.A.

(1998) being a paper delivered at a Seminar / Seminar organized by

The Faculty of Law, University of Lagos.

16. LANDLORD AND TENANT RELATIONSHIP: PROBLEMS,

PROSPECTS AND SOLUTION by OLULANA O.O. & others

(1993) being a dissertation submitted to the Department of Estate

Management, YABA COLLEGE OF TECHNOLOGY.

17. THE MERIT AND DEMERIT OF Lagos STATE RENT

CONTROL AND RECOVERY OF RESIDENTIAL PREMISES

EDICT NO 6 of 1997 by KADARA A. O. 1998 being a

dissertation submitted to the Department of estate management

YABA COLLEGE OF TECHNOLOGY.

18. EFFECT OF THE LAGOS STATE RENT CONTROL AND

RECOVERY OF RESIDENTIAL PREMISES EDICT NO.6, 1997

ON LANDLORD AND TENANT RELATIONSHIP IN

SHOMOLU BARIGA AREAS by AZEEZ, S. A. 1999 being a

dissertation submitted to the Department of estate management,

UNIVERSITY OF LAGOS.

19. Robert E. Megarry and H.W.R. Wade, The. Law of Real Property (London:

Stevens, 1975),

62