FCT: Reps Move to Curb Multi-Year Rent Demands, Regulate Agency Fees

The House of Representatives has advanced a bill seeking to protect tenants in the Federal Capital Territory (FCT) from excessive advance rent demands and high agency fees.

The proposed legislation has passed second reading at the National Assembly. It seeks to prevent landlords and estate agents from forcing tenants to pay more than 12 months’ rent upfront.

The bill is known as the Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026.

It was sponsored by Paul Nnamchi, representing Enugu State, and co-sponsored by Ahmed Yusuf Doro.

Bill Seeks to Limit Advance Rent to 12 Months

Under the proposed legislation, landlords, estate agents and property managers would not be allowed to demand more than 12 months’ rent in advance.

The restriction would cover both residential and commercial properties across the FCT.

However, tenants could voluntarily pay for more than one year. Such arrangements would only be allowed if landlords did not impose them and both parties documented the agreement in writing.

The bill also seeks to prevent landlords and agents from using compulsory service charges, separate agreements or artificial tenancy renewals to collect additional rent.

Proposed Regulation of Agency and Agreement Fees

The legislation also targets excessive agency and agreement charges.

Tenants have raised concerns about fees that sometimes reach 25 per cent of the annual rent.

To address the problem, the bill proposes reasonable limits on agency fees and a digital register for estate agents operating in Abuja.

It also seeks to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority.

The proposed authority would receive complaints, investigate rental disputes and monitor compliance with the new rules.

It would also have the power to order refunds of unlawful payments within 30 days.

Proposed Penalties for Landlords and Agents

The bill recommends financial penalties for individuals and companies that violate its provisions.

Individuals could face fines ranging from ₦500,000 to ₦5 million.

Corporate offenders could pay between ₦5 million and ₦20 million.

The proposed authority would also help tenants seek remedies when landlords or agents engage in unlawful rental practices.

Lawmakers Raise Concerns Over the Bill

During the debate, several lawmakers supported the proposal but called for further consideration of some provisions.

Some questioned whether restricting advance rent payments could conflict with property rights and freedom of trade.

Others argued that the legislation should cover the entire country rather than the FCT alone.

Lawmakers also discussed the need to balance tenants’ protection with landlords’ rights and the cost of maintaining rental properties.

Deputy Speaker Benjamin Kalu defended the proposal, citing the constitutional responsibility to promote citizens’ welfare and access to suitable housing.

The bill subsequently passed second reading and is expected to proceed to further legislative scrutiny and stakeholder engagement.

Proposed Law Still Requires Further Approval

Although the bill has advanced in the National Assembly, its provisions are not yet enforceable as law.

It must pass through further legislative stages before it can become law.

If eventually approved, the legislation could introduce new rules for advance rent payments, agency fees and tenancy protection across the Federal Capital Territory.