Reps advance bill to protect tenants from exploitation

The House of Representatives has superior a proposed regulation to regulate tenancy preparations within the Federal Capital Territory (FCT), with lawmakers divided over how far the federal government ought to intrude in rental transactions between landlords and tenants.

The Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026 (HB.2839), collectively sponsored by Paul Nnamchi (APC, Enugu) and Ahmed Doro (PDP, Katsina), handed second studying throughout Wednesday’s plenary.

The proposal seeks to handle exploitative rental practices, notably obligatory calls for for a number of years’ lease in advance, extreme costs and illegal eviction of tenants.

The bill had handed first studying on Thursday, 22 October, when it was formally launched within the House.

Leading the talk, Mr Nnamchi stated the rising price of lodging and the requirement for tenants to pay massive sums upfront had positioned appreciable monetary strain on residents, affecting family financial savings, companies and employment alternatives.

He stated the proposed laws would set up a extra clear and accountable rental system via restrictions on advance lease, regulation of letting practices and the creation of a framework for shielding the pursuits of each landlords and tenants.

Mr Nnamchi maintained that the laws was not designed to undermine property possession or discourage funding in the true property sector.

Rather, he stated it sought to make sure that the industrial pursuits of landlords and property brokers didn’t come on the expense of tenants who have been susceptible to exploitative practices.

He stated: “Mr Speaker, this laws shouldn’t be supposed to undermine property rights or discourage funding. Rather, it recognises that official industrial pursuits should coexist with public safety. Landlords deserve affordable returns.

“Agents deserve professional recognition. And tenants deserve fairness and protection from exploitation.”

The lawmaker added {that a} regulated rental market would promote transparency, certainty and accountability whereas enhancing confidence within the housing sector.

He urged lawmakers to help the bill so it might proceed to committee consideration, the place its provisions would obtain additional scrutiny, and stakeholders would have a chance to make a contribution.

Lawmakers divided over proposed restrictions

Although a number of lawmakers supported the proposal, the talk uncovered variations over whether or not the federal government ought to prohibit sure rental practices or just regulate them.

Idris Zacharias (PDP, Kogi) described the bill as necessary however urged the House to take into account wider land and housing points within the FCT.

He additionally referred to as for the House Committee on FCT and Area Councils to take part within the committee that may take into account the proposal.

Chinedu Ogah (APC, Ebonyi) supported the bill, citing the monetary difficulties companies encounter when attempting to safe workplace lodging in Abuja.

He stated, “Renting a three-bedroom office in Wuse could cost between ₦25 million and ₦30 million annually, excluding agency charges.”

Mr Ogah argued that clearer laws would assist handle extreme costs and create a extra predictable setting for traders.

Leko Gambo (APC, Bauchi) additionally supported the proposal however questioned using the phrase “prohibit” in its title.

He advised changing it with “regulate,” arguing that the laws ought to give attention to controlling rental practices slightly than imposing an outright prohibition.

Mr Gambo additionally proposed extending the bill’s utility past the FCT to different elements of the nation. However, Deputy Speaker Benjamin Kalu, who presided over the plenary, clarified that the proposal, as introduced, was particularly designed for the territory.

Ibe Osonwa (LP, Abia) expressed reservations about proscribing multiple-year lease funds.

He argued that landlords ought to retain some flexibility in figuring out the phrases of their transactions, describing the rental market as a free-market association.

“This is a free market situation. By the free market economy, are we now going to, for every good or service that is sold outside, start to tell people how to trade in their own businesses?” he requested.

Mr Osonwa stated landlords and tenants might mutually agree to multi-year funds in sure circumstances, urging lawmakers to keep away from a blanket restriction that would intrude with official industrial preparations.

Joseph Bagudu (APC, Kaduna) additionally advocated regulation slightly than prohibition, arguing that landlords wanted to recuperate their investments, notably amid rising constructing materials prices.

He additional disputed claims that company charges might attain 25 per cent of lease, saying the fees have been typically round 10 per cent.

Ayodeji Alao-Akala (APC, Oyo) supported the bill, saying it might handle obligatory calls for for a number of years’ lease slightly than stop landlords from rising rental costs.

He stated requiring younger {couples} and different potential tenants to pay two years’ lease upfront positioned an unreasonable monetary burden on them.

The lawmaker argued that the proposed laws might accommodate completely different cost preparations, together with month-to-month, six-monthly and annual funds, with out permitting landlords to compel tenants to pay a number of years’ lease without delay.

Patrick Umoh (APC, Akwa Ibom), nevertheless, raised issues about potential constitutional implications, notably relating to property rights and freedom of commerce.

He urged lawmakers to step down the bill for additional session and a overview of present tenancy legal guidelines within the FCT.

Wale Raji (APC, Lagos) stated earlier makes an attempt to handle rental difficulties had not sufficiently tackled the underlying issues.

He argued that the imbalance between housing demand and provide remained a significant driver of accelerating rents and referred to as for higher funding in social housing and elevated housing provide.

Sunday Umeh (APC, Enugu) disagreed with recommendations that the proposal violated the Constitution, urging the House to permit it to proceed to the following legislative stage, the place lawmakers might scrutinise and amend its provisions.

He argued that the National Assembly’s duty was to make legal guidelines that promote the welfare and good governance of Nigerians.

“The bill is not anti-investment. The bill is not against landlords or those investing in the real estate environment or industry. This bill is of good use to both the landlords and the tenants,” he stated.

Mr Umeh added that the legislative course of offered additional alternatives to handle issues and make needed corrections earlier than the bill acquired ultimate passage.

The Minority Leader, Frederick Agbedi (PDP, Bayelsa), additionally urged members to help the proposal, saying excessive rental prices have been forcing some Abuja residents into overcrowded and unsuitable lodging within the suburbs.

He stated the bill sought to handle excesses within the rental market with out discouraging funding in property improvement.

House Leader Julius Ihonvbere (PDP, Edo) additionally backed the proposal, citing the difficulties residents encounter when trying to find lodging and the actions of unregistered property brokers.

He stated the proposed laws would proceed to a public listening to, the place Nigerians, housing professionals and different teams might contribute to its consideration.

“We are in a stage where we have a duty to protect Nigerians. It’s not against you to build your house. You can build as many houses as you want,” he stated.

Deputy Speaker defends regulation of housing sector

In his closing remarks, Mr Kalu cited Section 16 of the 1999 Constitution, which outlines the financial targets of the Nigerian state, together with selling residents’ welfare and offering appropriate and satisfactory shelter.

He argued that Nigeria operated a blended economic system by which authorities regulation remained needed in sure sectors, notably these linked to important human wants.

“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,” he stated.

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The deputy speaker’s place mirrored supporters’ argument that housing shouldn’t be handled solely as a industrial transaction with out safeguards for folks in search of lodging.

The House subsequently handed the bill for second studying.

What the proposed regulation seeks to obtain

PREMIUM TIMES reported that the 17-page bill proposes a complete regulatory framework masking advance lease funds, tenancy agreements, property brokers, complaints, refunds, eviction practices and dispute decision.

Under Section 4, landlords, property brokers, and property managers could be prohibited from demanding, receiving, or compelling tenants to pay greater than 12 months’ lease in advance as a situation for granting, renewing, or persevering with a tenancy.

The restriction would apply to residential and industrial properties throughout the FCT.

However, the proposal doesn’t fully prohibit tenants from paying multiple 12 months’s lease. It permits voluntary funds exceeding 12 months when the tenant initiates the association with out coercion, discrimination, threats, or retaliation, offered the settlement is documented in writing.