By Rapheal
Copyright thesun
In Abraham Maslow’ s theory of motivation and its five levels of hierarchy of needs, shelter is prioritized alongside food and clothing as one of the physiological needs of man. Owning a roof over one’s head or a house in one’s place of origin is therefore one of the truest marks of adulthood in the traditional Igbo setting. That societal yardstick though unwritten still subsists.
However, the forces of urbanization and modernization also come with movement of labour and capital and hence, people are inclined to leave their homestead in search of educational advancement, career fulfillment, better opportunities, cosmopolitan lifestyle, and access to modern services, technology and information. Consequently, acquiring a personal abode in the city is seen as not just an asset and accomplishment but also an extension of the traditional norm. But the policy gap and absence of a functioning mortgage system in Nigeria makes the plight of would-be house-owners more challenging. Thus, anybody who cannot afford to own a home in the city would resort to renting an apartment. And this is where middlemen who pose as rental agents exploit the unsuspecting public as a fearsome cartel.
As John Perkins was one of the economic hitmen for the US National Security Agency who carried out underhand dealings and persuaded poor nations to accept development loans with cut-throat conditionalities at the latter’s expense, so the property agents in Nigeria collude with some landlords to rip off prospective tenants in Nigerian cities. The difference is that while the US economic hitmen are highly organized, tactically secretive, and international in operations, Nigeria’s property agents are loosely cohesive, brazenly audacious, and locally dissimilar in mannerisms. But the uniting chord among them is conscienceless exploitation, either veiled or provocatively pursued.
Property agents have become a domineering nightmare in the real estate market. Though largely unregistered and unregulated, they have, over the years, emerged a potent go-between and morphed into a thick-skinned force that now fills a yawned vacuum in the sub-sector. They operate as shadowy freelancers of informal economy and scarcely remit business and personal income taxes to government. Most of them are quacks and jobless, and out of instinct for survival and want of something to do, they resort to property agency to eke a living. And due to lack of training and official regulation, their modus operandi is mostly unprofessional and outlandishly tout-like. They subject people who are looking for residential accommodation and shops/offices to unimaginable pains.
Indeed, the attraction is huge. The sweatless flow of cash that comes with just contacting a property owner and linking him with a prospective tenant, especially spacious houses in high-brow areas, is not prone to the usual risks of business. The agency fees are also mouth-watering. And as implementers and enforcers of extortionate rules, property agents operate like “state within a state.” Their intimidations and threats of sanction send shivers down the spines of lily-livered persons. For the agents, all is fair in business and therefore, they deliberately make things difficult for young beginners, the disappearing middle class, and those on the bottom rung of economic ladder.
It however appears that the Nigerian adage, “Every day is for the thief, but one day is for the owner” is gradually dawning on this group that are like a thorn in the societal flesh. As said in Marxist dialectics, greed has bred its own contradictions. Their exploitative tendencies are nauseating and getting on the nerves as they throw caution to the winds in their quest for profiteering. Hence, apart from going higher than the lawful percentage of fees meant for agency, these agents sometimes hike the rent beyond the landlord’s upper limit charge, just to take the excess alone or, share it with the landlord. On the other hand, it defeats logic that a property agent would think of charging an amount far above the rent as his/her commission, yet most of these agents mercilessly insist on such daylight robbery. In most occasions, they insist on collecting the rent of up to two years. Greed also leads them to introduce extraneous charges like consultancy fees, daily transport fares, and caution levies – which are unlikely to be refunded when no liability is incurred at the end of the tenancy.
Already, some state governments are taking responsible steps to curb the racket and bring a measure of sanity to the overlooked enterprise. The Lagos State Government, for instance, has declared that “engaging in real estate practice without registration with the Lagos State Real Estate Regulatory Authority (LASRERA) is illegal and subject to sanctions.” It stated that overcharging of agency fees above the legally approved range of zero to 10 per cent is tantamount to professional misconduct and urged citizens to report such cases to LASRERA. Furthermore, it reiterated that demanding and collecting more than one year’s rent in advance is a violation of the law and advised the public to verify the status of property agents before engaging their services. In Enugu State, a Member of the House of Assembly, Okechukwu Mbah, also sponsored a bill which is undergoing legislative procedures. The bill seeks to abolish caution fees and pegged both agency and legal agreement fees at a maximum of 10 per cent. It also imposed some fines on any form of contravention.
Although the Ebonyi Governor, Francis Nwifuru has announced an outright ban on the activities of unlicensed property agents effective January 1, 2026, in his state, with the aim of “stopping agents from charging exorbitant fees, curbing soaring rents and protect residents from exploitation”, such pronouncement would be short-lived. Typical of any spur-of-the moment decision without legal and statutory pillars, the enforcement will not be sustainable. Beating the menace calls for a concerted solution. The National Economic Council, which has all governors as members, as well as the Conference of Speakers can adopt, harmonize, and pass legislations which would be assented by governors within a given time frame. This approach is all-encompassing and has a long-lasting impact. Our distraught citizens deserve a new lease of life.
