The House of Representatives has passed for second reading a bill seeking to end compulsory multi-year rent payments in the Federal Capital Territory, Abuja, amid growing concerns over rising accommodation costs and alleged exploitation of tenants by landlords and estate agents.
The proposed legislation seeks to prohibit landlords and property managers from demanding more than 12 months’ rent in advance as a condition for securing or renewing tenancy agreements.
Sponsored by the member representing Enugu East/Isi-Uzo Federal Constituency, Enugu State, Paul Nnamchi, the bill also proposes the regulation of agency fees, protection against unlawful eviction and the establishment of a dedicated authority to oversee rental transactions in the FCT.
Titled A Bill for an Act to Regulate Advance Rental Payments, Prohibit Compulsory Multiple-Year Rent Demands, Establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority, Provide Remedies for Unlawful Rental Practices, and for Related Matters, the legislation is co-sponsored by Ahmed Yusuf Doro.
Leading the debate on Wednesday, Nnamchi said excessive advance rent demands had placed enormous financial pressure on residents, weakened household savings, affected small businesses and restricted employment mobility.
He explained that the bill was designed to create a fairer rental system through limits on advance payments, regulation of agency charges, identification of registered housing agents and protection against coercive rental practices.
According to him, the proposed law would not undermine landlords’ property rights or discourage investment but would ensure that commercial interests do not become instruments of exploitation.
“Landlords deserve reasonable returns. Agents deserve professional recognition. And tenants deserve fairness and protection from exploitation,” he said.
Under Section 4 of the proposed legislation, landlords, estate agents and property managers would be prohibited from demanding, receiving or compelling tenants to pay more than 12 months’ rent in advance.
However, tenants would still be permitted to voluntarily pay beyond 12 months, provided the arrangement was not imposed by the landlord and was properly documented in writing.
The bill also seeks to prevent landlords from circumventing the restriction through compulsory additional charges or separate agreements.
It further proposes fines ranging from N500,000 to N5m for individuals who violate the provisions, while corporate offenders could face penalties of between N5m and N20m.
The proposed Federal Capital Territory Rent Regulation and Tenants’ Protection Authority would be responsible for investigating complaints, mediating rental disputes and enforcing compliance.
Lawmakers divided over constitutional concerns
Despite widespread support for the proposal, Wednesday’s debate exposed disagreements among lawmakers over the extent to which government should regulate private rental arrangements.
While several members argued that intervention was necessary to protect tenants from excessive charges, others raised concerns about possible constitutional implications for property rights and freedom of trade.
Idris Zacharias, representing Ida/Igalamela-Ibaji/Ofu Federal Constituency of Kogi State, described the bill as important but called for broader consideration of land and housing issues in the FCT
However, Ibe Osonwa, representing Arochukwu/Ohafia Federal Constituency of Abia State, cautioned against an outright prohibition of multi-year rental arrangements, arguing that some circumstances could justify such agreements.
He maintained that the legislation should focus on regulation rather than completely restricting landlords’ freedom to negotiate rental terms.
Joseph Bagudu, representing a constituency in Kaduna State, also called for the replacement of the word ‘prohibit’ with ‘regulate’, noting that landlords needed to recover their investments amid rising building material costs.
Patrick Umoh of Akwa Ibom State equally raised constitutional concerns and urged the House to step down the bill for further consultation.
Kalu defends proposed regulation
Presiding over the debate, Deputy Speaker Benjamin Kalu acknowledged the constitutional concerns but maintained that the proposed legislation did not violate the 1999 Constitution, as amended.
He cited Section 16 of the Constitution, which provides for citizens’ welfare and access to suitable and adequate shelter, arguing that housing was too fundamental to be left entirely to unrestricted market forces.
Kalu maintained that Nigeria operated a mixed economy in which sectors connected to essential human needs could be regulated in the public interest.
Supporting the bill, Minority Leader Frederick Agbedi said rising accommodation costs were forcing many FCT residents into overcrowded and unsuitable living conditions in satellite towns and surrounding communities.
He argued that landlords should not exploit rising property values to impose unreasonable rental charges on tenants.
House Leader, Prof.
House Leader, Prof. Julius Ihonvbere, also endorsed the proposal, describing it as an important intervention against the activities of unregistered estate agents and difficulties faced by residents seeking accommodation.
He disclosed that the bill would proceed to a public hearing, where relevant stakeholders and members of the public would have the opportunity to make contributions.
Following the debate, the House passed the bill for second reading, paving the way for further legislative scrutiny.
The proposed law, if eventually passed and assented to, would apply to residential and commercial tenancies within the Federal Capital Territory and is expected to become operational within six months of commencement.
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