Landlords in the Federal Capital Territory could face fines of up to ₦5 million for demanding more than one year’s rent in advance under a bill before the House of Representatives.
The bill, sponsored by Reps. Paul Nnamchi (Enugu East/Isi-Uzo) and Ahmed Doro (Bindawa/Mani, Katsina), would make advance rent demands exceeding 12 months illegal for residential and commercial properties in the FCT.
Individuals found guilty of demanding or collecting more than a year’s rent in advance could be fined between ₦500,000 and ₦5 million. The bill also proposes higher penalties for companies and commercial property management firms.
Landlords who collect excess rent could be ordered to refund it within 30 days. The proposed legislation would also establish a regulatory authority to monitor rental practices, investigate complaints and issue compliance notices. Refusal to comply with a valid notice could attract an additional fine of up to ₦1 million.
The bill would require landlords and authorised estate agents to provide written tenancy agreements before or at the start of a tenancy. The agreements would have to state the rent and payment schedule, tenancy period, refundable deposits, service charges, and the rights and obligations of both parties.
Tenants and landlords would retain the right to take disputes to court. Anyone dissatisfied with a decision by the proposed regulatory authority could appeal to the FCT High Court within 30 days.
Many tenants in Abuja face demands for two or three years’ rent in advance, in addition to agency and legal fees. Rising living costs have made such upfront payments difficult for civil servants and other residents.
Previous legislative efforts to address rental costs have included a House resolution in late 2025 urging a 20 per cent cap on annual rent increases, as well as proposals to explore monthly rent payments. Related housing initiatives have also been introduced in the Senate.
Tenant advocacy groups and civil society organisations have welcomed the bill, saying it could protect residents from exploitative practices. Some real estate stakeholders, however, have expressed concerns about government intervention in private property matters.
The bill must pass through the remaining stages in the House and receive Senate approval before being sent to the President for assent.
