Reps pass FCT rent regulation bill amid disagreement

Lawmakers divided over proposed ban on compulsory multi-year rent payments

By Gift Chapi Odekina, Abuja

The House of Representatives has passed for second reading a bill seeking to regulate rental payments and curb exploitative practices by landlords and estate agents in the Federal Capital Territory (FCT), amid disagreements among lawmakers over a proposed ban on compulsory multi-year rent payments.

The bill, sponsored by Rep. Paul Sunday Nnamchi, seeks to regulate advance rent payments, arbitrary rent increases and agency fees, as well as establish a unified digital register for housing agents.

It also provides safeguards for landlords and tenants, with penalties for violations of its provisions.

Leading the debate, Nnamchi said the rising cost of accommodation and excessive demands for advance rent had placed enormous financial pressure on residents, affecting household savings, small businesses and employment mobility.

He said the proposed legislation was designed to establish a fairer and more accountable rental system through the regulation of advance payments, reasonable limits on agency fees and proper identification of housing agents.

“Mr Speaker, this legislation is not intended to undermine property rights or discourage investment. Rather, it recognises that legitimate commercial interests must coexist with public protection. Landlords deserve reasonable returns.

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

Supporting the bill, Rep. Idris Zacharias, representing Ida/Igalamela/Ibaji/Ofu Federal Constituency of Kogi State, described the proposal as important but called for broader consideration of land administration and housing challenges in the FCT.

He also urged the House Committee on FCT and Area Councils to be included in the committee that would consider the bill.

Similarly, Rep. Chinedu Ogah, representing Ikwo/Ezza South Federal Constituency of Ebonyi State, backed the proposal, citing the difficulties businesses face in securing office accommodation in Abuja.

Ogah said renting a three-bedroom office in Wuse could cost between N25 million and N30 million annually, excluding additional agency charges.

He argued that regulating the rental market would provide clearer rules for transactions and encourage investment in the sector.

However, Rep. Leko Jafaru Gambo, representing Bogoro/Dass/Tafawa Balewa Federal Constituency of Bauchi State, called for a review of the bill’s title, arguing that the word “prohibit” should be replaced with “regulate”.

He also suggested that the legislation should have nationwide application, but Deputy Speaker Benjamin Kalu clarified that its current scope was limited to the FCT.

Rep. Ibe Okwara Osonwa, representing Arochukwu/Ohafia Federal Constituency of Abia State, also supported regulation but cautioned against an outright prohibition of multi-year rent arrangements.

He disputed claims that agency fees could reach 25 per cent, arguing that they were generally around 10 per cent.

On his part, Rep. Ayodeji Alao-Akala, representing Ogbomoso North/South/Orire Federal Constituency of Oyo State, said the bill targeted compulsory multi-year payments rather than preventing landlords from increasing rents.

He argued that requiring young couples and other prospective tenants to pay two years’ rent upfront imposed an unreasonable financial burden.

“As a youth, when a young couple comes out of service now, and is being asked to pay two years, where will this insurance money come from?” he asked.

Alao-Akala said the proposed legislation could provide for monthly, six-monthly or annual rental arrangements while preventing landlords from compelling tenants to pay several years’ rent upfront.

However, Rep. Patrick Umoh raised constitutional concerns, particularly over property rights and freedom of trade, urging the House to step down the bill for further consultations and a review of existing tenancy laws in the FCT.

Kalu also acknowledged concerns about possible inconsistencies with constitutional provisions, while lawmakers drew attention to Section 44(2)(c) of the Constitution, which addresses laws relating to leases and tenancies.

Contributing to the debate, Rep. Wale Raji, representing Epe Federal Constituency of Lagos State, said previous attempts to regulate rents had not sufficiently addressed the problem.

He argued that the widening gap between housing demand and supply remained a major driver of rising rental costs.

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

The Minority Leader, Rep. Frederick Agbedi, also urged lawmakers to support the proposal, saying the high cost of rent in the FCT was forcing residents into overcrowded and unsuitable accommodation in satellite communities and suburban areas.

He said the bill was intended to address excesses in the rental market without discouraging investment in the property sector.

The House Leader, Rep. Julius Ihonvbere, described the legislation as important, citing the difficulties Nigerians face in securing accommodation and the activities of unregistered estate agents.

“I think this is a very important bill. And I want to thank Professor Nnamchi for thinking about it,” he said.

Ihonvbere said the bill would proceed to a public hearing, where Nigerians, professionals and other stakeholders would have the opportunity to make contributions.

He urged lawmakers to support the measure, stressing that regulating the sector should not be interpreted as an attempt to discourage property development.

“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 said.

In his closing remarks, Kalu cited Section 16 of the Constitution, which provides for the promotion of citizens’ welfare and suitable and adequate shelter.

He argued that although Nigeria operates a mixed economy, sectors connected to essential human needs, including housing, require regulation and control.

“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 said.

The bill was subsequently passed for second reading, paving the way for further legislative consideration and a public hearing to enable stakeholders to make submissions.