…bill provides for refund of unlawful payments within 30 days
The House of Representatives is considering a bill seeking to prohibit landlords, estate agents, and property managers in the Federal Capital Territory from demanding more than 12 months’ rent in advance as a condition for granting or renewing a tenancy.
The proposed legislation also seeks to establish a regulatory authority to oversee rental payments, investigate complaints, and protect tenants against unlawful practices in Abuja’s rental market.
The Federal Capital Territory Rent Regulation and Tenants’ Protection Bill, 2026, sponsored by Paul Nnamchi, representing Enugu East/Isi-Uzo Federal Constituency, and Ahmed Doro, representing Bindawa/Mani Federal Constituency of Katsina State, seeks to curb compulsory multi-year advance rent payments and other practices that place financial pressure on tenants.
Under the proposal, landlords, estate agents, property managers and anyone acting on behalf of a landlord would be prohibited from demanding, receiving or compelling tenants to pay more than 12 months’ rent upfront as a condition for securing or renewing accommodation.
The bill also seeks to prevent landlords and their agents from circumventing the restriction by imposing compulsory service charges, using separate agreements, repeatedly renewing tenancy agreements or adopting other arrangements designed to force tenants to pay more than one year’s rent in advance.
During the debate, Emmanuel Ukpong-Udo, who sponsored the motion, said, “Within the Federal Capital Territory, monthly rent payments are uncommon, with landlords usually demanding a minimum of at least one year’s rent, while others require two years upfront.”
He argued that Nigeria needed an inclusive rental system that would reduce the housing burden on working-class families and provide affordable monthly rental options for low- and middle-income earners.
Ukpong-Udo also highlighted the pressure of accommodation costs on civil servants and artisans, many of whom live in satellite towns because of their limited incomes.
He cited the high cost of accommodation in Abuja, noting that a one-bedroom self-contained apartment could cost between N1m and N1.5m, while two-bedroom apartments ranged from N2m to N3m at the time.
He further raised concerns about additional charges, including agency fees, legal fees, service and maintenance charges, and caution fees, which increase the amount tenants must raise before securing accommodation.
The latest bill seeks to establish a more comprehensive framework for regulating rental transactions and providing tenants with an avenue to challenge unlawful demands
However, the proposed law would allow tenants to voluntarily pay rent for more than 12 months where the arrangement is initiated by the tenant without coercion, threats, discrimination or retaliation.
Such voluntary arrangements would have to be documented in writing.
The bill further proposes that landlords and authorised agents provide written tenancy agreements before or at the commencement of a tenancy.
The agreements would specify the rent payable, payment schedule, duration of the tenancy, refundable deposits, additional charges, and the respective rights and obligations of landlords and tenants.
To enforce the proposed provisions, the bill seeks to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority.
The authority would be empowered to investigate complaints, monitor compliance by landlords and estate agents, facilitate dispute resolution and order refunds where unlawful rental payments have been made.
Under the proposal, where the authority determines that a tenant has paid rent in violation of the law, it could direct the landlord or agent to refund the unlawful payment within 30 days of serving the relevant order.
The bill also proposes financial penalties for offenders.
Individuals convicted of knowingly violating the restriction on advance rent payments could face fines ranging from N500,000 to N5m, while corporate offenders could be fined between N5m and N20m.
Anyone convicted of failing to comply with a valid compliance notice issued by the authority could also face a fine of up to N1m.
The proposed legislation would preserve the right of landlords and tenants to seek judicial redress.
It also provides that anyone dissatisfied with a decision of the authority could appeal to the FCT High Court within 30 days.
The proposed legislation follows earlier attempts by the National Assembly to address rising accommodation costs and excessive rent demands.
In October 2025, the parliament proposed limiting rent increases nationwide to 20 per cent and urged the Federal Government to enforce the measure. However, there has been no verified confirmation that the proposal has been implemented.
The House had also previously considered ways to encourage more flexible rent payment arrangements in Abuja, where landlords commonly demand one or two years’ rent upfront.
In May 2024, the House mandated its Committee on the FCT to examine the implementation of monthly rent payments in Abuja, with a view to encouraging an inclusive rental system and curbing arbitrary increases.
If enacted, the proposed law would introduce clearer rules governing advance rent payments and create an institution with powers to investigate complaints, order refunds and penalise violations.
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