Oyo Govt Engages Estate Agents to Curb Rising Rents, Commission Extortion

In a bid to address the escalating concerns over rent hikes and extortionate practices by house agents, the Oyo State Government has announced plans to regulate the activities of estate agents across the state. The move comes amid growing complaints from tenants about unfair commissions and exploitative tactics in the housing sector.

The Commissioner for Lands, Housing, and Urban Development, Hon. Williams Akin-Funmilayo, revealed this during a stakeholders’ engagement meeting with members of the Estate Rent and Commission Agents Association (ERCAA) on Wednesday in Ibadan. The commissioner emphasized the government’s commitment to protecting tenants and sanitizing the housing market, noting that while the state cannot dictate rental prices set by property owners, such practices can be regulated through legislation.

Speaking at the meeting, Hon. Akin-Funmilayo highlighted a recent controversy where a local radio station attached his image to reports decrying high house rents, urging him to intervene. He also referenced a debate in the Oyo State House of Assembly on Monday, where lawmakers expressed support for enacting a law to regulate estate agents’ operations. The Speaker of the Assembly, Rt. Hon. Adebo Ogundoyin, has since announced the formation of a committee to draft a bill aimed at curbing these excesses, demonstrating the legislature’s seriousness in tackling the issue.

The commissioner explained that the engagement with ERCAA leaders was a proactive step to gather input from practitioners before presenting a unified position to the Assembly. “This will ensure that any eventual law reflects the realities on the ground and involves all stakeholders,” he said.

In response, the Chairman of ERCAA, Hon. Mutahir Okekunle, commended the state government under Governor Seyi Makinde for policies that have bolstered their operations. He noted that improved security in Oyo State has attracted more residents, leading to increased housing demand. Okekunle assured that the association has been addressing these concerns internally for over a year and is open to collaboration with the government to eliminate extortion.

Residents in Ibadan and other parts of Oyo State have long decried the practices of some house agents, including inflated agency fees, mandatory “agreement” charges, and demands for multiple months’ rent in advance. A recent public outcry, amplified through social media and local forums, prompted the Assembly’s intervention, with lawmakers vowing to protect citizens from exploitation.

The proposed regulation is expected to introduce standardized fees, accreditation for agents, and penalties for violations, similar to measures in other Nigerian states like Lagos. Government officials believe this will foster a more transparent and tenant-friendly housing environment, encouraging investment and population growth in the state.