Reps Pass FCT Rent Regulation Bill For Second Reading

The House of Representatives has passed a bill seeking to prevent landlords, estate agents and property managers in the Federal Capital Territory (FCT) from demanding more than 12 months’ rent in advance.

The bill, sponsored by Professor Nnamchi and co-sponsored by Ahmed Yusuf Doro, scaled second reading after lawmakers debated the need to protect tenants from excessive rental charges and exploitative practices.

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 proposed legislation seeks to promote fairness in rental transactions across the FCT.

Leading the debate, Nnamchi said excessive advance rent demands had placed considerable financial pressure on residents, affecting household savings, small businesses and employment opportunities.

He said the bill would regulate advance payments, establish a unified platform for identifying housing agents, set reasonable limits on agency fees and protect tenants from coercive rental practices.

“Mr Speaker, this legislation is not intended to undermine property rights or discourage investment. Rather, it recognises that legitimate commercial interests must coexist with public protection. Landlords deserve reasonable returns,” he said.

“Agents deserve professional recognition. And tenants deserve fairness and protection from exploitation.”

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 upfront.

However, tenants would be allowed to voluntarily pay beyond 12 months, provided landlords did not impose the arrangement and both parties documented their agreement in writing.

The bill also proposes the establishment of the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority to investigate complaints, mediate disputes and enforce compliance.

Landlords who violate its provisions could face fines ranging from ₦500,000 ₦5 million, while corporate offenders could be fined between ₦5 million and ₦20 million.

During the debate, several lawmakers supported the proposal but called for amendments to address concerns about property rights, the scope of regulation and the circumstances surrounding multiple-year rental agreements.

Idris Zacharias, who represents Ida/Igalamela-Ibaji/Ofu Federal Constituency of Kogi State, described the bill as important but urged lawmakers to consider broader land and housing issues 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, backed the proposal, citing the high cost of renting business premises in Abuja.

He said a three-bedroom office in Wuse 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, supported the bill but suggested replacing the word “prohibit” with “regulate” in its title. He also argued that the legislation should extend nationwide rather than remain limited to the FCT.

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

Kaduna lawmaker Joseph Bagudu expressed similar concerns, saying regulation would be more appropriate than prohibition, particularly given the rising cost of building materials and landlords’ need to recover their investments.

Meanwhile, Ayodeji Alao-Akala, representing Ogbomoso North/South/Orire Federal Constituency of Oyo State, backed the bill, arguing that compulsory multiple-year rent demands placed an unreasonable burden on young people and newly married couples.

He called for the legislation to accommodate monthly, six-monthly and annual payment arrangements while preventing landlords from forcing tenants to pay several years’ rent upfront.

However, Patrick Umoh, representing an Akwa Ibom constituency, raised constitutional concerns over property rights and freedom of trade. He urged lawmakers to step down the bill for further consultation 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 of the Constitution, which provides for the promotion of citizens’ welfare and access to suitable and adequate shelter, arguing that housing was an essential sector requiring regulation in the public interest.

House Leader Julius Ihonvbere also supported the legislation, citing the difficulties residents face in securing accommodation and the activities of unregistered estate agents.

He disclosed that the bill would proceed to a public hearing to allow Nigerians, professionals and other stakeholders to contribute to its consideration.

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

Wale Raji, representing Epe Federal Constituency of Lagos State, however, argued that rent regulation alone would not resolve the housing crisis, stressing the need to increase housing supply and invest in social housing.

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

The bill’s passage at second reading paves the way for further legislative consideration and stakeholder engagement, including a public hearing.