The House of Representatives is considering a bill seeking to prohibit landlords, estate agents and property managers in the Federal Capital Territory (FCT) from demanding more than 12 months’ rent in advance as a condition for granting or renewing a tenancy.
Gatekeepers News reports that the proposed legislation, sponsored by Paul Nnamchi, representing Enugu East/Isi-Uzo Federal Constituency, and Ahmed Doro, representing Bindawa/Mani Federal Constituency in Katsina State, also seeks to establish an authority to regulate rental payments and protect tenants from unfair practices.
The bill, which passed first reading on Thursday, proposes that landlords and their agents should not compel tenants to pay more than one year’s rent upfront. It also seeks to prevent them from circumventing the restriction through compulsory service charges, separate agreements, repeated tenancy renewals or other arrangements designed to force tenants to pay more than the stipulated period.
However, tenants would be allowed to voluntarily pay more than 12 months’ rent if they initiate the arrangement without coercion, threats, discrimination or retaliation, provided the agreement and payment are documented in writing.
The proposed legislation also requires landlords and authorised agents to provide written tenancy agreements before or at the commencement of a tenancy. The agreements would specify the rent, payment schedule, duration of the tenancy, refundable deposits, additional charges and the rights and obligations of both parties.
Under the bill, the proposed Federal Capital Territory Rent Regulation and Tenants’ Protection Authority would investigate complaints, monitor compliance, facilitate dispute resolution and order refunds where landlords or agents collect rent unlawfully.
The authority would also be empowered to direct landlords to refund unlawful rent payments within 30 days of an order.
The bill proposes fines ranging from ₦500,000 to ₦5 million for individuals who knowingly violate the restriction on advance rent payments, while corporate offenders could face fines between ₦5 million and ₦20 million.
It also seeks to prohibit unlawful eviction practices, including threats, violence, disconnection of essential services, destruction or removal of tenants’ property and changing locks without lawful authority.
However, landlords would retain the right to recover outstanding rent and possession of their properties through lawful procedures.
The proposed legislation comes amid concerns over rising accommodation costs in Abuja, where tenants often face substantial upfront payments alongside agency, legal and other fees before securing rented accommodation.
If passed by the National Assembly and enacted into law, the bill would establish a regulatory framework for advance rent payments and provide mechanisms for tenants to challenge unlawful rental practices in the FCT.
