Month-to-Month Tenancy Agreement (Nigeria)

A Month-to-Month Tenancy Agreement in Nigeria is a periodic tenancy contract that automatically renews each month unless terminated by either the landlord or the tenant with the required notice, governed by state tenancy legislation including the Lagos State Tenancy Law 2011 (Lagos Law No. 6 of 2011), the Abuja Tenement Rate Act, the Recovery of Premises Act (Cap R4, LFN 2004), and applicable state recovery of premises laws.

Under the Lagos State Tenancy Law 2011, the most thorough state tenancy statute in Nigeria, a monthly tenancy is a recognised form of periodic tenancy. Section 13 of the Lagos Tenancy Law requires a landlord to give a tenant of monthly tenancy a minimum of one month's notice to quit, served in writing, before commencing recovery of premises proceedings at the Lagos Rent Tribunal or Magistrate Court. The tenant must similarly give one month's written notice to quit.

A Month-to-Month Tenancy Agreement differs from a fixed-term tenancy because it does not expire on a set date. Instead, the tenancy continues month to month until validly terminated. Under the Recovery of Premises Act (Cap R4, LFN 2004), which applies in states that have not enacted their own tenancy laws, a landlord who fails to serve a valid notice to quit before commencing an ejectment suit risks having the action struck out for procedural non-compliance, as affirmed by the Lagos High Court in multiple decisions.

The agreement is particularly common for residential letting in urban centres such as Lagos, Abuja, Port Harcourt, Kano, and Ibadan, where landlords prefer flexibility over fixed-term commitments, and for short-term corporate accommodations where an employer requires accommodation for an expatriate or newly transferred employee without committing to an annual tenancy. Under the Land Use Act 1978, residential property in Nigeria is held under statutory rights of occupancy granted by state governors; all letting arrangements are sub-tenancies of that underlying right.

Stamp duty on a monthly tenancy agreement in Nigeria is assessed at a nominal flat rate under the Stamp Duties Act (Cap S8, LFN 2004) by the state Internal Revenue Service, as the indefinite term means the agreement does not attract the ad valorem stamp duty applicable to fixed-term leases of three years or more under Section 10 of the Stamp Duties Act.

The legal framework governing the Month-to-Month Tenancy Agreement (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Month-to-Month Tenancy Agreement (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Land Use Act 1978 (Cap. L5) sets the foundational requirements.

A Month-to-Month Tenancy Agreement in Nigeria is required when a landlord and tenant want a flexible letting arrangement without committing to a fixed annual or multi-year term.

A Month-to-Month Tenancy Agreement is needed when a landlord is marketing a property for sale and wishes to maintain rental income while retaining the right to require the tenant to vacate at short notice once a buyer is found. The one-month notice period under the Lagos State Tenancy Law 2011 balances tenant security with the landlord's commercial needs.

A Month-to-Month Tenancy Agreement is required when a company relocates an employee to a new city and needs to provide temporary accommodation while the employee searches for a permanent home. Corporate tenants in Victoria Island (Lagos), Maitama (Abuja), and GRA Port Harcourt commonly use monthly tenancies for such arrangements.

A Month-to-Month Tenancy Agreement is needed when an existing fixed-term tenancy has expired and the landlord and tenant have not yet agreed terms for renewal. Without a written month-to-month agreement, a tenant who holds over after the expiry of a fixed term becomes a tenant at sufferance, with weaker legal protection than a periodic tenant.

A Month-to-Month Tenancy Agreement is required when foreign nationals or expatriates who have obtained CERPAC (Combined Expatriate Residence Permit and Aliens Card) from the Nigeria Immigration Service require short-term residential accommodation in Lagos or Abuja. The agreement provides proof of address for immigration and for CBN BVN registration purposes.

A Month-to-Month Tenancy Agreement is needed for serviced apartment lettings where the operator charges a monthly all-inclusive rate covering rent, utilities, and service charge, and where the guest may extend or terminate at the end of any month depending on business needs.

Parties in Nigeria should prepare a Month-to-Month Tenancy Agreement (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.

A valid Month-to-Month Tenancy Agreement in Nigeria must contain the following essential elements.

Parties: Full legal names, addresses, and contact details of the landlord and tenant. For corporate landlords or tenants, include CAC registration numbers under CAMA 2020. The landlord's agent (if any) and the estate management company should also be identified.

Property Description: Full address of the demised premises including plot number, street, LGA, and state. For apartment lettings, specify the unit number, floor, and building name. A reference to the title instrument (Certificate of Occupancy or Deed of Lease) under which the landlord holds the property should be included.

Commencement Date and Periodic Term: The start date of the tenancy and confirmation that the term is monthly, automatically renewing each month on the same date until terminated. Under the Lagos State Tenancy Law 2011, the periodic term must be expressly stated.

Rent and Payment Terms: The monthly rent in NGN, the due date (e.g., first day of each month), the payment method (bank transfer to specified account, mobile money), and the penalty for late payment. The agreement should specify whether rent is inclusive or exclusive of service charge, electricity, water, and security fees.

Notice to Quit: A clause specifying that either party may terminate by giving not less than one calendar month's written notice to the other party, consistent with Section 13 of the Lagos State Tenancy Law 2011. In FCT Abuja, the applicable notice requirement under the FCT Administration Act and Recovery of Premises Act should be referenced.

Deposit: The amount of security deposit (typically one to two months' rent in Lagos), the conditions for deduction, and the timeframe for return after the tenancy ends. The Lagos Tenancy Law 2011 does not cap security deposits, but the agreement should specify itemised deductions.

Tenant Obligations: Maintenance duties, prohibition on subletting without consent, noise restrictions, waste disposal requirements, and compliance with estate management rules. Reference should be made to any estate covenant or building code applicable to the property.

Landlord Obligations: Obligation to keep the structure and exterior in good repair, provide functional water and electricity connections, and respond to repair requests within a reasonable time. Under the Recovery of Premises Act, a landlord who fails in basic maintenance obligations may face counterclaims in Rent Tribunal proceedings.

Additional compliance elements for a Month-to-Month Tenancy Agreement (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.