Reps consider bill to ban compulsory multi-year advance rent in FCT

The House of Representatives on Thursday passed for first reading a bill seeking to regulate advance rent payments and prohibit landlords in the Federal Capital Territory (FCT) from compulsorily demanding more than one year’s rent in advance.

The Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026 (HB.2839), sponsored by Paul Nnamchi (APC, Enugu), with Ahmed Doro (PDP, Katsina) as co-sponsor, also seeks to establish a regulatory authority to protect tenants and landlords from unlawful rental practices.

The bill proposes that landlords, estate agents, property managers or anyone acting on behalf of a landlord must not demand, receive or compel a tenant to pay more than 12 months’ rent in advance as a condition for granting, renewing or continuing a tenancy.

It also seeks to prevent landlords and agents from circumventing the proposed restriction through additional charges, compulsory service charges, artificial renewal of tenancy agreements or other arrangements designed to force tenants to pay more than a year’s rent upfront.

The bill, a copy of which was obtained by PREMIUM TIMES, says the proposed law would apply to both residential and commercial tenancies in the FCT.

Under the proposed legislation, tenants could voluntarily pay more than 12 months’ rent in advance, but only where the offer is initiated by the tenant and is not imposed as a condition by the landlord.

“A landlord, estate agent, property manager or other person acting on behalf of a landlord shall not demand, receive or compel a tenant to pay more than twelve months’ rent in advance as a condition…”

The bill further requires that such payments be made without coercion, discrimination, threats or retaliation and that the agreement be documented in writing.

Proposed FCT rent authority

The legislation proposes the establishment of the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority to administer and enforce the law.

The authority would be empowered to receive and investigate complaints, monitor landlords, estate agents and property managers, issue compliance notices, facilitate mediation and order refunds where unlawful rent payments have been made.

It would also maintain a public register of letting agents where registration is required, establish complaint offices and electronic reporting channels across the FCT, including satellite towns, and publish periodic reports on rental practices and enforcement outcomes.

The proposed authority would also be able to order a landlord or agent to refund an unlawful payment within 30 days where it determines that rent was received in violation of the law.

A person who knowingly demands or receives more than the permitted advance rent could face a fine of between ₦500,000 and ₦5 million, while a body corporate could be fined between ₦5 million and ₦20 million.

The court could additionally order a refund, compensation for proven loss or payment of lawful costs.

The bill also seeks to prohibit unlawful eviction practices, including threats or violence, disconnection of essential services, removal or destruction of a tenant’s property, changing locks without lawful authority and other forms of self-help.

However, the proposed law preserves the rights of landlords to recover rent lawfully due and recover possession of their property through due process.

Rising rents in Abuja

The proposed legislation comes amid persistent concerns over the cost of renting accommodation in Abuja.

PREMIUM TIMES reported in July 2025 that residents across the FCT were struggling with rising rents and arbitrary increases in rent, agency fees, agreement fees and caution fees.

Residents disclosed that the rising cost of accommodation was forcing some people to leave their homes and neighbourhoods for cheaper areas, sometimes with poorer infrastructure and longer commuting distances.

The proposed bill is therefore targeting one of the major pressures confronting tenants: the requirement to raise large sums at once before securing or retaining accommodation.

Meanwhile, in 2022, a similar bill sponsored by a former senator for Kogi West, Smart Adeyemi, scaled second reading at the Senate.

The bill sought to regulate the mode of payment of rent in the FCT by cutting down advance payment of rent from one or two years by tenants to three months and subsequent monthly payments.

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The problem is not peculiar to Abuja.

In Lagos, where the cost of accommodation has also become a major concern, the state government introduced the Lagos State Tenancy and Recovery of Premises Bill, 2025, which sought, among other things, to limit advance rent, regulate estate agents and provide mechanisms for tenants to challenge unfair rent increases.

PREMIUM TIMES reported that the Lagos proposal sought to prevent landlords from demanding more than one year’s rent from new tenants, while sitting tenants on periodic payment arrangements could not be forced to pay more than three months in advance.

The Lagos proposal also sought to address excessive agency fees, illegal eviction tactics and prolonged disputes between landlords and tenants.