Reps advances bill to bar landlords from demanding more than one year’s rent in Abuja

A bill seeking to bar landlords, property managers and estate agents in the Federal Capital Territory (FCT) from demanding more than 12 months’ rent as a condition for granting or renewing a tenancy has passed second reading at the house of representatives. 

Sponsored by Paul Nnamchi (APC, Enugu) and Ahmed Doro (PDP, Katsina), the proposed legislation, which seeks to establish an authority to regulate rental payments and protect tenants from unlawful practices, passed the first reading on October 22.

The bill also proposes measures to prevent landlords from circumventing the restriction through intermediaries, compulsory service charges, artificial tenancy renewals, separate agreements, or other arrangements designed to compel tenants to pay more than 12 months’ rent upfront.

Under the proposal, tenants could voluntarily pay rent for more than one year if they initiate the arrangement without coercion, threats, discrimination, or retaliation, provided the agreement and payment are documented in writing.

Leading the debate during plenary on Wednesday, Nnamchi said rising accommodation costs and the requirement for tenants to pay large sums upfront have placed considerable financial pressure on residents, affecting household savings, businesses, and employment opportunities.

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

THE DEBATE

While several lawmakers supported the bill, others questioned whether an outright ban was necessary.

Idris Zacharias (PDP, Kogi) acknowledged the importance of the proposed legislation but urged the house to consider broader land and housing challenges in the nation’s capital.

Similarly, Chinedu Ogah (APC, Ebonyi) backed the bill, pointing to the financial burden businesses face when seeking office space in Abuja.

“Renting a three-bedroom office in Wuse could cost between N25 million and N30 million annually, excluding agency charges,” he said.

He argued that clear regulations would curb excessive charges and give investors a more stable, predictable business environment.

Leko Gambo (APC, Bauchi) backed the proposal but raised concerns about the word “prohibit” in the bill’s title, noting that “regulate” would be more appropriate.

However, Ibe Osonwa (LP, Abia) opposed restrictions on multi-year rent payments, adding that landlords should have some discretion in setting tenancy terms, given the rental sector’s free-market nature.

Joseph Bagudu (APC, Kaduna) also favoured regulation over prohibition, saying that landlords should be allowed to recoup their investments, especially given the rising cost of building materials.

Ayodeji Alao-Akala (APC, Oyo) supported the bill, clarifying that it aimed to tackle compulsory demands for multiple years’ rent rather than restrict landlords from increasing rental prices.

He noted that demanding two years’ rent upfront placed an excessive financial burden on young couples and other prospective tenants.

Patrick Umoh (APC, Akwa Ibom) questioned the proposal’s constitutionality, particularly regarding 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.

Frederick Agbedi, the minority leader, urged lawmakers to support the proposal, noting that soaring rents were pushing some Abuja residents into overcrowded and unsuitable accommodation in the suburbs.

Julius Ihonvbere, the majority leader, backed the legislation, highlighting the difficulties residents face in securing accommodation and the activities of unregistered estate agents.

Benjamin Kalu, the deputy speaker who presided, said Nigeria operates a mixed economy in which government regulation remained necessary in certain sectors, particularly those connected to essential human needs.

“Not all sectors of the economy should be free and capitalist, especially when it comes to shelter, which is fundamental. So, some sectors should be regulated as well as controlled,” he said.

Lawmakers voted for the bill when Kalu called for a voice vote.