Relief For Abuja Tenants? Reps Propose 12-Month Limit On Advance Rent Demands

The House of Representatives has passed for second reading a bill seeking to prohibit landlords, estate agents and property managers in the Federal Capital Territory (FCT) from compelling tenants to pay more than 12 months’ rent in advance.

The proposed legislation, sponsored by Professor Nnamchi and co-sponsored by Ahmed Yusuf Doro, is aimed at protecting tenants from excessive rental demands and promoting fairness in property transactions across the FCT.

During the debate, Nnamchi said the practice of demanding several years’ rent upfront had placed significant financial pressure on residents, affecting household savings, small businesses and employment opportunities.

He explained that the bill seeks to regulate advance rental payments, establish a unified platform for identifying housing agents, set reasonable limits on agency fees and protect tenants against coercive rental practices.

According to Nnamchi, the proposed law is not intended to undermine property rights or discourage investment but to ensure that landlords, estate agents and tenants enjoy fair treatment in rental transactions.

Under Section 4 of the bill, 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 that period, provided the landlord does not impose the arrangement and both parties document their agreement in writing.

The bill also proposes the establishment of the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority, which would be responsible for investigating complaints, mediating rental disputes and enforcing compliance with the proposed law.

Under the proposed penalties, individual landlords and offenders could face fines ranging from ₦500,000 to ₦5 million, while corporate offenders could be fined between ₦5 million and ₦20 million for violating the provisions.

Several lawmakers expressed support for the proposal during the debate but called for adjustments to address concerns surrounding property rights, the scope of regulation and situations where multiple-year rental agreements may be necessary.

Idris Zacharias, who represents Ida/Igalamela-Ibaji/Ofu Federal Constituency of Kogi State, described the bill as important but urged lawmakers to consider wider land and housing challenges in the FCT. He also called for the House Committee on FCT and Area Councils to participate in its further consideration.

Similarly, Chinedu Ogah, representing Ikwo/Ezza South Federal Constituency of Ebonyi State, supported the proposal, citing the high cost of renting business premises in Abuja. He disclosed that a three-bedroom office in Wuse could cost between ₦25 million and ₦30 million annually, with agency fees adding to the financial burden.

Jafaru Gambo, representing Bogoro/Dass/Tafawa Balewa Federal Constituency of Bauchi State, also backed the bill but suggested replacing the word “prohibit” with “regulate” in its title. He further argued that the proposed legislation should be extended nationwide rather than restricted to the FCT.

Ibe Osonwa, representing Arochukwu/Ohafia Federal Constituency of Abia State, cautioned against an outright ban on multiple-year rental agreements, noting that certain circumstances could make such arrangements necessary.

Kaduna lawmaker Joseph Bagudu expressed similar reservations, arguing that regulation would be more appropriate than prohibition, particularly in view of rising building material costs and landlords’ need to recover their investments.

On the other hand, Ayodeji Alao-Akala, representing Ogbomoso North/South/Orire Federal Constituency of Oyo State, supported the bill, maintaining that compulsory multiple-year rent payments placed an unreasonable burden on young people and newly married couples.

He urged lawmakers to ensure that the proposed legislation accommodates monthly, six-monthly and annual payment arrangements while preventing landlords from forcing tenants to pay several years’ rent upfront.

However, Patrick Umoh, representing a constituency in Akwa Ibom State, raised constitutional concerns relating to property rights and freedom of trade. He called for the bill to be stepped down to allow further consultations and a review of existing tenancy laws in the FCT.

Presiding over the debate, Deputy Speaker Benjamin Kalu dismissed concerns that the proposal violated the 1999 Constitution, as amended. He cited Section 16, which provides for the promotion of citizens’ welfare and access to suitable and adequate shelter, arguing that housing is an essential sector that requires regulation in the public interest.

House Leader Julius Ihonvbere also backed the proposed legislation, pointing to the difficulties residents encounter in securing accommodation and the activities of unregistered estate agents.

Ihonvbere disclosed that the bill would proceed to a public hearing, where Nigerians, housing professionals and other stakeholders would have the opportunity to make contributions before further legislative action.

Minority Leader Frederick Agbedi urged lawmakers to support the proposal, stating that excessive rental costs had forced many FCT residents into overcrowded and unsuitable accommodation in satellite towns and surrounding suburbs.

However, Wale Raji, representing Epe Federal Constituency of Lagos State, argued that rent regulation alone would not resolve the housing crisis. He stressed the importance of increasing housing supply and investing in social housing to make accommodation more accessible.

Sunday Umeha, representing Enugu State, also rejected the constitutional objections and urged the House to allow the bill to proceed for further scrutiny and possible amendments.

According to Bush Radio Academy, the bill’s passage for second reading marks another stage in the legislative process, with a proposed public hearing expected to provide an opportunity for stakeholders to examine its provisions and recommend changes before further consideration.