In Nigeria’s real estate market, no investment is complete without solid documentation. Whether you own residential apartments, commercial buildings, or mixed-use developments, your tenancy agreement determines how your property will be occupied and managed. Investors often focus on land acquisition, Governor’s Consent, or the C of O, but overlook the tenancy agreement that ultimately governs day-to-day property use. Understanding how lawyers draft tenancy agreements helps you reduce risk, avoid disputes, and comply with state tenancy laws.
This article provides a comprehensive, investor-friendly explanation of how legal practitioners prepare tenancy and lease agreements in Nigeria, drawing from statutory requirements, practical considerations, and industry-accepted drafting standards.
Why Tenancy Agreements Matter in Nigerian Real Estate
A tenancy agreement is a legally binding contract between a landlord and a tenant. It establishes the terms and conditions governing occupation and provides a dispute-avoidance and enforcement framework. For investors, a well-drafted rental agreement in Nigeria:
- Protects your property and financial interests
- Clarifies obligations and rights
- Establishes lawful grounds for eviction
- Ensures compliance with tenancy and land laws
- Helps maintain professional landlord-tenant relations
In states like Lagos, Rivers, Abuja, and Oyo, tenancy laws regulate notice periods, rent control, and eviction procedures. A properly drafted contract ensures you are not unintentionally violating these provisions.
Key Elements Lawyers Include When Drafting Tenancy Agreements
Below are the essential components that legal practitioners incorporate when preparing tenancy or lease documents in Nigeria.
1. Parties to the Agreement
A tenancy agreement must clearly identify:
- The landlord (individual or corporate entity)
- The tenant(s)
- Any property managers or agents acting on the landlord’s behalf
For corporate landlords, lawyers ensure CAC details align with ownership documents or title investigations, especially when the investor is relying on powers of attorney or development agreements.
2. Accurate Description of the Property
To avoid future disputes, the agreement typically includes:
- Property address
- Size and features (e.g., number of rooms, parking, borehole, generator use)
- Designation (residential, commercial, mixed-use)
Investors with multiple units in the same development often specify unit numbers and common-area obligations in the tenancy contract template for Nigeria.
3. Duration of Tenancy
Lawyers specify:
- Monthly, yearly, bi-annual, or fixed-term occupation
- Renewal procedures
- Conditions for non-renewal
Where the term exceeds three (3) years, it becomes a long-term lease that must be registered at the Land Registry.
4. Rent and Payment Terms
This is one of the most negotiated aspects of the tenancy agreement. Lawyers draft clauses covering:
- Rent amount
- Payment frequency
- Bank transfer details
- Late payment penalties
- Rent review terms (applicable for commercial leases)
Example Clause (Investor-Friendly Format)
| Clause | Sample Draft |
|---|---|
| Rent Clause | “The Tenant shall pay ₦500,000 per annum for the property at No. 15 Adeola Street, Ikeja, Lagos. Rent is payable in advance on or before 1 January each year through bank transfer to the Landlord’s designated account.” |
5. Security Deposit
Deposits are included to cover:
- Damages
- Unpaid utility bills
- Unpaid rent
Lawyers also clarify the conditions for refund and when deductions are permissible.
6. Obligations of the Parties
Landlord’s Obligations
- Structural repairs
- Ensuring quiet enjoyment
- Maintaining common areas
Tenant’s Obligations
- Timely payment of rent
- Proper use of the property
- Compliance with estate rules
- Not causing a nuisance
These clauses are key to avoiding ambiguity and disputes.
7. Termination and Notice Periods
Lawyers draft:
- Notice periods for landlord and tenant
- Grounds for termination
- Conditions for force majeure
- Eviction procedures in line with state laws
For example, Lagos State Tenancy Law 2011 requires specific minimum notice periods for different types of tenancies.
8. Dispute Resolution Clause
Many investors prefer Alternative Dispute Resolution (ADR) to avoid lengthy eviction suits. Thus, lawyers typically include mediation or arbitration as part of their practice.
Draft Sample:
“In the event of a dispute, the parties shall attempt mediation. If mediation fails, the matter shall be referred to arbitration under the Arbitration and Mediation Act.”
9. Special Clauses Tailored to the Investment
Depending on the property type, lawyers add clauses addressing:
- Subletting restrictions
- Short-let conversion
- Pets
- Renovations and alterations
- Generator fuel responsibility
- Service charge and waste management
Tailoring these clauses is especially important for multi-tenant commercial buildings.
Legal Framework Governing Tenancy Agreements in Nigeria
A. State Tenancy Laws
Each state has unique regulations. Examples include:
- Lagos State Tenancy Law 2011 – governs rent review, notice, and eviction
- Rivers State Rent Control Law – regulates rent and recovery of premises
Investors operating across multiple states need tenancy documents that reflect the differences in those states.
B. Land Use Act 1978
Lawyers confirm that the landlord holds a valid title or has the authority to let the property. This protects investors relying on:
- Deeds of Assignment
- Certificates of Occupancy (C of O)
- Governor’s Consent
- Registered leases
This is especially critical when investing in newly acquired or unregistered land.
C. Evidence Act 2011
Tenancy agreements must be in writing to be admissible in court. Oral tenancy arrangements expose investors to serious risk.
D. Judicial Authorities
Nigerian courts consistently uphold tenancy agreements. For instance, in Adole v. Gwar (2008), the Supreme Court emphasized the need to comply with contractual terms. This case underscores why clarity and legal precision matter.
How Lawyers Draft Tenancy Agreements: Practical Tips
1. Clarity of Language
Ambiguous phrases like “reasonable notice” are replaced with exact periods (e.g., “30 days”). This eliminates tenant-landlord conflicts.
2. Customization
No two properties are identical. Lawyers tailor agreements based on:
- Property type
- State regulations
- Intended use
- Tenant profile
3. Comprehensive Clauses
Well-crafted agreements anticipate issues, such as:
- Repairs and maintenance
- Utility payments
- Use of common facilities
4. Compliance with Applicable Laws
Lawyers must ensure the agreement aligns with the relevant state tenancy law and federal statutes.
5. Regular Review
Investors with multiple properties often update their standard lease templates to reflect new policies or regulatory changes.
Common Drafting Mistakes Investors Should Avoid
- Using generic online templates
- Omitting termination or notice clauses
- Vague wording
- Failing to register long-term leases
These errors can lead to disputes, financial loss, or unenforceable agreements.
Conclusion
Understanding how lawyers draft tenancy agreements helps Nigerian real estate investors protect their interests and avoid costly disputes. A well-drafted lease sets out clear obligations, aligns with state tenancy laws, and safeguards your income stream. Whether you operate residential apartments or commercial spaces, a legally sound agreement is essential to long-term property management.
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Navigating property laws in Nigeria can be complex, but the right legal guidance makes all the difference.
At Scotts Legal, we provide expert support in property acquisition, title investigation, registration, and property management, helping real estate investors make confident, compliant, and secure decisions.
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