House of representatives
Nigeria House of representatives

The House of Representatives is considering a bill to protect tenants in the Federal Capital Territory (FCT) from excessive advance rent demands and unfair practices by landlords, estate agents and property managers.

The proposed legislation seeks to prohibit landlords from demanding more than 12 months’ rent upfront as a condition for granting or renewing a tenancy.

Sponsored by Paul Nnamchi, representing Enugu East/Isi-Uzo Federal Constituency, and Ahmed Doro, representing Bindawa/Mani Federal Constituency, the bill also seeks to establish a regulatory authority to oversee rental transactions and resolve disputes between landlords and tenants.

Under the proposal, landlords would not be allowed to circumvent the 12-month limit through estate agents, compulsory service charges, separate agreements or repeated tenancy renewals.

However, tenants could voluntarily pay more than one year’s rent if they initiate the arrangement without pressure, threats, discrimination or retaliation. The bill requires the parties to document such agreements and payments in writing.

The proposed law would also require landlords and authorised agents to provide written tenancy agreements before or at the start of a tenancy.

Such agreements must state the rent, payment schedule, duration of the tenancy, refundable deposits and additional charges. They must also specify the rights and responsibilities of both parties.

To enforce the proposed provisions, the bill seeks to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority.

The authority would investigate complaints, monitor compliance and help resolve disputes. It could also order landlords to refund unlawfully collected rent within 30 days of issuing a refund order.

The bill proposes fines for landlords and other offenders who breach its provisions. Individuals who knowingly violate the restriction on advance rent could face fines ranging from N500,000 to N5 million.

Corporate offenders could pay between N5 million and N20 million. Anyone who fails to comply with a valid notice issued by the authority could also face a fine of up to N1 million.

The proposal would allow landlords and tenants to seek redress in court. Anyone dissatisfied with a decision by the authority could appeal to the FCT High Court within 30 days.

The bill comes amid concerns over rising accommodation costs in Abuja, where tenants often face the challenge of raising large sums upfront to secure rented homes.

Beyond limiting advance rent, the proposed legislation seeks to provide a framework for handling complaints, enforcing tenancy agreements and holding landlords and property managers accountable for unlawful charges.

If enacted, the law would introduce a 12-month limit on advance rent in the FCT, subject to its provisions allowing tenants to make voluntary payments beyond that period.

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