Ruth Okwumbu-Imafidon, a journalist with Legit.ng, has over a decade of experience in business reporting across digital and mainstream media.

Stakeholders have called on the Lagos state government to reconsider the high fees required for real estate agents to register with the Lagos State Real Estate Regulatory Authority (LASRERA).

They described the fees as too high and counterproductive to the government’s efforts to reduce the housing costs for Lagos residents.

The stakeholders have also flagged the dual regulatory structure, which compels real estate agents and agencies to register with multiple bodies, noting that it can undermine the established professional bodies.

Recall that the Lagos state government recently declared it illegal for housing agents and agencies to charge arbitrary fees other than the 10% fees allowed under the LASRERA laws.

The government also opened reporting channels, urging Lagos residents to report incidents of exploitation by real estate housing agents or property owners.

In response to that announcement, the body of real estate agents declared that such acts were being perpetrated by unprofessional and unregistered people posing as real estate agents.

In a move to curb this, the head of LASRERA, Barakat Odunuga-Bakare, announced in June 2025 that the agency would be reinforcing compliance on real estate agents.

These include enforcing the cap on agency fees as earlier announced and mandatory registration of practitioners, including agents and developers.

Odunuga-Bakare declared it illegal for any real estate business to be conducted without a valid LASRERA-issued certificate.

While stakeholders commended the move, the decision from LASRERA to fix the N1 million annual registration fee has triggered reactions.

Mr. Austin Otegbulu, Chairman of the Board of Trustees of the Nigerian Institution of Estate Surveyors and Valuers, remarked in an interview that while LASRERA had good intentions to sanitise the real estate sector, the approach could have been better.

He questioned the N1 million registration fee, noting that it could discourage some from registering.

“The amount is too much. You will scare away skilled people who don’t have the money. Saying to pay N1m is like saying you’re out to make money. What about people who have the skill but not the money who will now be kept out?”

Speaking with The PUNCH News, Otegbulu also pointed out the presence of other professional regulatory bodies from which the members pay dues to the federal government agency in charge. He called on LASERA to review the fees to reduce the burden for the professionals.

The president of the Lagos State chapter of the Real Estate Developers Association of Nigeria, Akintoye Adeoye, commended LASRERA for the efforts to clear out quacks from the industry but called for a downward review of the fee.

“If they can bring it down, probably N500,000, maybe that will encourage more people to register with them.”

Chapter President of FIABCI Nigeria, Akin Opatola, emphasised that it is necessary to enforce registration to ensure compliance with laid-down rules.

“The bad eggs are giving us professionals a bad name. Now, the average barber, the average chef, the average vulcaniser, and everybody call themselves real estate agents. It shouldn’t be so.”

He, however, observed that the N1 million registration fee could prevent smaller players from registering. Opatola called for more consultations to arrive at a more affordable fee.

In related news, Former Lagos State Governor, Babatunde Fashola, is leading real estate professionals to push for monthly rental payments across Nigeria, as against annual payments.

Legit.ng reported that these issues were raised at the Wemabod Real Estate Outlook 2025 event in Lagos, which focused on how real estate can help Nigeria’s economy recover.

Fashola, who once served as Minister of Power, Works, and Housing, said that if rent payments align with monthly salaries, it could help control and potentially reduce inflation.

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Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng