The Government Is Coming for House Agents in Ibadan: Oyo Assembly Moves to End Unregulated Property Brokers
Nigeria’s property market is vibrant, fast-growing, and critical to economic stability — yet it also has a dark side. In cities like Ibadan, unregulated house agents have transformed from helpful intermediaries into an economic burden for renters and property buyers alike. This problem has now attracted serious government scrutiny, culminating in decisive action from the Oyo State House of Assembly under the leadership of Rt. Hon. Adebo Ogundoyin.
The message from Ibadan lawmakers is clear: “house agents operating outside the law will no longer be allowed to exploit citizens.” But what exactly is unfolding? And why is this move so important for property seekers, landlords, and the future of the real estate sector in Oyo State? Here’s a comprehensive breakdown.
📌 What Triggered Government Action?
Oyo State Speaker Rt. Hon. Adebo Ogundoyin has openly condemned the unregulated practices of house and real estate agents across the state. During the 2025 Oyo State Real Estate Conference in Ibadan, Ogundoyin highlighted widespread concerns about how unlicensed and unprofessional agents have contributed to housing affordability issues for ordinary residents.
According to the Speaker, many agents exploit market conditions by charging exorbitant fees, levying hidden charges, and behaving in ways that increase the cost of living for everyday citizens looking for homes. These practices were described as exploitative, especially affecting low- and middle-income earners who already struggle with rental costs.
🏠 House Agents in Nigeria — The Broader National Problem
What’s happening in Oyo isn’t unique to Ibadan.
Across Nigeria, lax regulation and a lack of enforcement in the property sector have created fertile ground for unscrupulous house agents to flourish — often at the expense of tenants. Nigeria’s real estate market suffers from a fragmented regulatory ecosystem where anyone with a phone and internet presence can claim to be a property agent, regardless of experience or professional credentials.
Common complaints nationwide include:
✅ Charging multiple inspection fees for the same property
✅ Advertising units that don’t exist
✅ Charging commissions well above legal or industry norms
✅ Withholding key information from renters or buyers
✅ Fraudulent listings on online platforms
Such practices not only distort the housing market but also lead to lost savings, broken agreements, and mistrust in the entire system.
💰 How House Agents Increase Rental Costs
In Nigeria’s major cities — Lagos, Abuja, Port Harcourt, Kano — unchallenged agent conduct has been linked directly to Gallup-style market inflation. Property owners and agents may collude to set rents above market value, particularly in high-demand neighborhoods, while pocketing unjustified fees upward of 20% or more of annual rent.
The result?
• Higher overall cost of housing
• Reduced affordability for families
• Increased barriers for first-time renters
• Financial losses from hidden, unchecked charges
These challenges have pushed residents in several states to call for urgent government regulation — exactly the momentum now surfacing in Oyo.
📜 Proposed Government Response in Oyo State
🏛️ The Role of the Oyo State House of Assembly
Under Speaker Rt. Hon. Adebo Ogundoyin, the Oyo State House of Assembly has pledged to establish a special committee tasked with drafting a new bill aimed directly at curbing the “menace” of unlicensed and unethical house agents. While the details of the bill are still being formulated, the intent is to:
✔ Develop legal frameworks for professional licensing of house agents
✔ Penalize unregistered operators who flout standards
✔ Protect tenants from predatory fees and misinformation
✔ Standardize property brokerage conduct statewide
✔ Increase oversight and enforcement powers of regulatory bodies
This initiative signals a shift away from a laissez-faire approach toward accountability and consumer protection in the real estate market.
📊 Why the Move Matters
📌 1. Protecting Tenants, Especially Vulnerable Groups
For many Nigerians, rent is the largest monthly expense. When unregulated agents hike fees and demand hidden charges without accountability, renters lose out twice — through inflated prices, and through deception. A bill to regulate agents would help protect renters from:
• Arbitrary agency and inspection fees
• Exploitative contract terms
• Fraudulent listings and fake inspections
• Other unethical or illegal practices
This protection matters deeply in a state where the cost of housing continues to rise.
📌 2. Encouraging a Formal, Professional Market
Regulation would help distinguish professional estate agents from quacks and scammers. Organizations like the Nigerian Institution of Estate Surveyors and Valuers (NIESV) and Estate Surveyors and Valuers Registration Board of Nigeria (ESVARBON) already advocate for ethical standards, but lack enforcement muscle at the grassroots. Proper legislation would legally require agents to:
✔ Register with government authorities
✔ Adhere to a code of conduct
✔ Provide transparent, documented transactions
✔ Maintain accountability to clients
This legitimizes the profession and helps restore public trust.
📌 3. Stabilizing Market Prices
Unchecked agent behavior has contributed to artificial inflation of rental values. Reining in unethical conduct could stabilize rents by minimizing speculative pricing and gaming of the system. This, in the long term, could reduce housing insecurity among ordinary Nigerians.
📌 4. Reducing Fraud, Scams and Legal Disputes
Nigeria’s real estate market has historically suffered from scams, forged documents, and unverified claims — in large part due to weak agent regulation. A stronger framework would reinforce due process in property transactions, helping tenants and landlords alike avoid costly legal disputes.
📌 5. Aligning with National Trends
Other states in Nigeria are already tightening controls on house agents. For example:
• Lagos has strengthened property agent registration and enforcement through LASRERA.
• Ebonyi announced a ban on house and land agents accused of charging exploitative fees.
Oyo’s move reflects a regional push toward accountability — and the state that innovates first may shape the future blueprint for all of Nigeria.
🧱 Challenges to Implementation
Of course, legislation is just one step. Real enforcement will require:
🔹 Monitoring bodies with enforcement authority
🔹 Public awareness campaigns
🔹 Collaboration with professional real estate associations
🔹 Incentives for compliance
🔹 Penalty mechanisms that are proportionate and deterrent
Without these components, regulatory frameworks risk becoming laws on paper only. Effective enforcement is essential.
👣 What Next?
As the proposed bill takes shape:
📍 Citizens and stakeholders should demand transparency in the legislative process
📍 Real estate professionals should prepare for standardized licensing
📍 Tenants and landlords should understand their rights and legal protections
📍 Journalists and civil society should track enforcement and outcomes
A well-executed policy could bring legitimacy, fairness, and growth to Nigeria’s property market.
🏁 Final Thoughts
For far too long, unregulated house agents have thrived in Ibadan and across Nigeria’s cities, exploiting gaps in governance and accountability. The Oyo State House of Assembly’s initiative to establish a bill-drafting committee represents a landmark shift toward protecting renters, promoting professionalism, and stabilizing the housing market. What was once informal — and often predatory — could soon become structured, ethical, and legally enforceable.
Stay tuned. This reform may redefine how Nigerians buy, rent, and secure homes — beginning right here in Oyo State.
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