Reps advance bill to stop Abuja landlords from demanding over one year’s rent

The House of Representatives has passed for second reading a bill seeking to prohibit landlords, property managers and estate agents in the Federal Capital Territory (FCT) from demanding more than 12 months’ rent upfront as a condition for granting or renewing tenancy agreements.

The proposed legislation, sponsored by Paul Nnamchi (APC, Enugu) and Ahmed Doro (PDP, Katsina), also seeks to establish an authority to regulate rental payments and protect tenants against exploitative practices.

The bill, which passed its first reading on October 22, was debated during Wednesday’s plenary.

It also seeks to prevent landlords and property managers from evading the proposed restriction through intermediaries, compulsory service charges, artificial tenancy renewals, separate agreements and other arrangements designed to compel tenants to pay more than one year’s rent upfront.

However, the proposal allows tenants to voluntarily pay rent for more than 12 months, provided the arrangement is initiated without coercion, threats, discrimination or retaliation and is properly documented in writing.

Leading the debate, Nnamchi said rising accommodation costs and demands for multiple years’ rent upfront had placed considerable financial pressure on residents, affecting household savings, businesses and employment opportunities.

He said the proposed legislation was not intended to undermine property rights or discourage investment but to ensure fairness between landlords and tenants.

“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.

Lawmakers divided over proposal

During the debate, several lawmakers expressed support for the bill, while others questioned the need for an outright prohibition on multi-year rent payments.

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

Chinedu Ogah (APC, Ebonyi) also supported the bill, citing the financial burden businesses face when renting office spaces in Abuja.

He said renting a three-bedroom office in Wuse could cost between N25 million and N30 million annually, excluding agency charges.

Ogah argued that clear regulations would help curb excessive charges and provide investors with a more predictable business environment.

Similarly, Leko Gambo (APC, Bauchi) backed the proposal but expressed reservations about the use of the word “prohibit” in the bill’s title, suggesting that “regulate” would be more appropriate.

However, Ibe Osonwa (LP, Abia) opposed restrictions on multi-year rent payments, arguing that landlords should retain some discretion in determining tenancy conditions under the free-market system.

Joseph Bagudu (APC, Kaduna) also advocated regulation rather than prohibition, saying landlords should be allowed to recover their investments, particularly amid rising building material costs.

Ayodeji Alao-Akala (APC, Oyo) supported the bill, explaining that its intention was to address compulsory demands for multiple years’ rent rather than prevent landlords from increasing rental prices.

He said requiring tenants to pay two years’ rent upfront placed an excessive financial burden on young couples and other prospective tenants.

Patrick Umoh (APC, Akwa Ibom), however, questioned the constitutionality of the proposed legislation, particularly its implications for 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.

Reps back regulation of rental payments

The minority leader, Frederick Agbedi, urged lawmakers to support the bill, noting that rising rents were forcing some Abuja residents into overcrowded and unsuitable accommodation in suburban communities.

The majority leader, Julius Ihonvbere, also supported the proposal, citing the difficulties residents face in securing accommodation and the activities of unregistered estate agents.

Presiding over the session, Deputy Speaker Benjamin Kalu said government regulation was necessary in certain sectors of the economy, particularly those connected to essential human needs.

He argued that although Nigeria operates a mixed economy, some sectors, including housing, require government oversight.

“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.

The lawmakers subsequently voted in favour of the bill through a voice vote, advancing it to the next legislative stage.