By Emmanuella Opara | November 4th 2026
KEY POINTS
- The House of Representatives has passed for second reading a bill seeking to prohibit compulsory advance rent payments exceeding 12 months in the Federal Capital Territory.
- The proposal also seeks to regulate agency fees, protect tenants against unlawful eviction and establish an FCT rent regulatory authority.
- Individual offenders could face fines of N500,000 to N5m, while corporate offenders could be fined up to N20m.
- Lawmakers expressed differing views over property rights, freedom of trade and whether the proposed restrictions should apply nationwide.
MAIN STORY
The House of Representatives has advanced a bill seeking to limit compulsory advance rent payments to 12 months in the Federal Capital Territory, amid concerns over rising accommodation costs and exploitative practices in the rental market.
The bill, sponsored by Paul Nnamchi, who represents Enugu East/Isi-Uzo Federal Constituency, was passed for second reading during Wednesday’s plenary.
It proposes restrictions on landlords, estate agents and property managers demanding more than one year’s rent as a condition for securing or renewing a tenancy. It also seeks to regulate agency fees, provide remedies for unlawful rental practices and protect tenants against intimidation and eviction.
Under the proposal, tenants would still be allowed to pay more than 12 months’ rent voluntarily, provided the arrangement was not imposed by the landlord and was documented in writing.
The legislation further seeks to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority to investigate complaints, mediate disputes and enforce compliance.
Landlords and individuals who violate the proposed advance-rent restriction could face fines ranging from N500,000 to N5m, while corporate offenders could be fined between N5m and N20m.
Presenting the bill, Nnamchi said excessive advance rent demands had placed financial pressure on residents, affecting household savings, businesses and workers’ ability to move in search of employment.
He said the proposal was intended to create a more transparent rental system through reasonable limits on agency charges, proper identification of housing agents and protection against coercive practices.
The bill, however, attracted different positions from lawmakers, particularly over the extent to which government should regulate rental transactions and whether restrictions could infringe on landlords’ property rights and freedom of trade.
Some members supported the proposal but called for the word “prohibit” in its title to be replaced with “regulate”. Others argued that the legislation should cover the entire country rather than only the FCT.
Jafaru Gambo, representing Bogoro/Dass/Tafawa Balewa Federal Constituency of Bauchi State, said the proposed restrictions should be reviewed, while Joseph Bagudu of Kaduna State also favoured regulation over prohibition, citing the need for landlords to recover their investments amid rising building costs.
Ibe Osonwa, representing Arochukwu/Ohafia Federal Constituency of Abia State, cautioned against a blanket ban on multi-year rent arrangements, arguing that some circumstances could justify such agreements.
Patrick Umoh of Akwa Ibom State raised constitutional concerns over the proposed restrictions on property rights and freedom of trade, urging lawmakers to step down the bill for further consultation and a review of existing tenancy laws.
Other lawmakers backed the proposal, pointing to the financial burden of securing accommodation in Abuja.
Chinedu Ogah, representing Ikwo/Ezza South Federal Constituency of Ebonyi State, cited the cost of renting a three-bedroom office in Wuse, Abuja, which he said ranged from N25m to N30m annually, excluding agency fees.
Ayodeji Alao-Akala of Oyo State also supported the bill, arguing that requiring young couples and newly employed people to pay two years’ rent upfront placed an unreasonable burden on them.
The Deputy Speaker, Benjamin Kalu, who presided over the debate, acknowledged the constitutional concerns but maintained that the proposal did not violate the 1999 Constitution, as amended. He referred to provisions allowing laws governing leases and tenancies.
Kalu also cited Section 16 of the Constitution, which provides for citizens’ welfare and suitable and adequate shelter, arguing that housing could be regulated in the public interest.
The Minority Leader, Frederick Agbedi, said high rents were pushing residents towards satellite towns and surrounding suburbs, where some were forced to live in overcrowded and unsuitable conditions.
House Leader Julius Ihonvbere supported the bill and said it would proceed to a public hearing, allowing Nigerians, professionals and other stakeholders to contribute to its consideration.
The proposed law applies to residential and commercial tenancies in the FCT. It also seeks to prevent landlords from using compulsory charges or separate agreements to circumvent the 12-month limit and proposes that the regulatory authority become operational within six months of the law’s commencement.
THE ISSUES
The proposal seeks to address the financial pressure created by landlords demanding several years’ rent upfront, particularly in a market where tenants may struggle to raise large sums before securing accommodation.
However, the debate has exposed concerns about how far government regulation should extend into private rental agreements. While supporters argue that restrictions are necessary to protect tenants, opponents warn that poorly defined limits could affect property owners and the freedom to negotiate commercial arrangements.
The disagreement over whether the bill should prohibit or regulate multiple-year payments also points to the need for clear provisions distinguishing compulsory demands from voluntary agreements.
WHAT’S BEING SAID
“Landlords deserve reasonable returns. Agents deserve professional recognition. And tenants deserve fairness and protection from exploitation,” Paul Nnamchi, the bill’s sponsor, said.
“The bill is not anti-investment. The bill is not against even the landlords or those making investment in the real estate environment or industry. This bill is of good use to both the landlords and the tenants,” Sunday Umeha, representing Enugu State, said.
“Not all sectors of the economy should be free and capitalist. Especially when it has to do with shelter, which is fundamental. So, some sectors should be regulated as well as controlled,” Benjamin Kalu, Deputy Speaker of the House of Representatives, said.
WHAT’S NEXT
The bill will proceed to the relevant committee for detailed consideration and a public hearing, where lawmakers, housing professionals, landlords, tenants and other stakeholders are expected to examine its provisions.
The committee stage will provide an opportunity to consider proposed amendments, including calls to replace prohibition with regulation and expand the bill’s coverage beyond the FCT.
BOTTOM LINE
The bill’s passage for second reading moves the proposed 12-month advance-rent limit a step further in the legislative process. Its final form will depend on how lawmakers address concerns over tenants’ protection, landlords’ property rights and the scope of government regulation in the rental market.
