Nigeria’s FCT Rent Reform Bill Advances as Reps Seek to End Compulsory Multi Year Rent Payments.

Nigeria’s FCT Rent Reform Bill Advances as Reps Seek to End Compulsory Multi Year Rent Payments.

A proposed legislation seeking to regulate rental payments and protect tenants from excessive advance rent demands in the Federal Capital Territory (FCT) has passed its second reading in the House of Representatives, marking another step towards addressing growing concerns over housing affordability in Abuja.

The bill seeks to prohibit landlords, estate agents and property managers from compelling tenants to pay more than 12 months’ rent in advance as a condition for securing, renewing or continuing a tenancy.

Sponsored by Paul Nnamchi and co sponsored by Ahmed Doro, the proposed legislation is designed to address rental practices that have placed considerable financial pressure on residents, particularly low and middle income earners who struggle to raise large sums of money before securing accommodation.

The development comes amid persistent concerns over rising accommodation costs in Abuja, where prospective tenants frequently encounter demands for one or two years’ rent upfront, alongside agency, agreement and other associated charges.

Proposed Legislation Targets Exploitative Rental Practices

The proposed Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026, seeks to establish a legal framework for regulating tenancy arrangements and promoting accountability within the FCT’s housing market.

Beyond restricting compulsory multi year advance payments, the legislation proposes measures to prevent landlords and property agents from circumventing the 12 month limit through compulsory service charges, additional agreements, artificial tenancy renewals and other indirect payment arrangements.

The proposal also provides for written tenancy agreements, transparent disclosure of rental charges and the issuance of receipts for payments made by tenants.

Importantly, the proposed restriction does not completely prohibit tenants from voluntarily paying more than 12 months’ rent in advance. However, such arrangements must originate from the tenant, without coercion, threats, discrimination or retaliation, and must be properly documented.

Proposed Rent Regulatory Authority

Another significant component of the bill is the proposed establishment of the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority.

The proposed institution would be responsible for receiving and investigating complaints, monitoring rental transactions, facilitating dispute resolution and ensuring compliance with the provisions of the legislation.

It would also have the authority to issue compliance notices and order refunds where tenants are found to have made unlawful advance rental payments.

Under the proposal, individuals or organisations found to have collected rent in violation of the stipulated requirements could be directed to refund the unlawful amount within 30 days.

The proposed authority would also establish complaint offices and electronic reporting channels across the FCT, including satellite communities, to improve access to tenant protection mechanisms.

Housing Affordability Remains a Major Concern

The legislative development reflects broader concerns about Nigeria’s housing affordability challenges, particularly in major urban centres where accommodation costs have continued to place pressure on household incomes.

For many Abuja residents, the requirement to pay substantial amounts upfront creates difficulties, especially for salaried workers whose earnings are received monthly.

Although the proposed legislation could reduce the burden of compulsory multi year payments, it does not automatically make accommodation cheaper.

The bill does not establish a general ceiling on rental prices or require landlords to accept monthly or quarterly payments. Consequently, landlords could still demand a full year’s rent upfront, provided the arrangement complies with the proposed legislation.

Agency fees and other associated charges could also remain a financial challenge for prospective tenants.

This distinction is important because regulating advance payments addresses only one aspect of the housing affordability problem. Expanding affordable housing supply, improving access to housing finance and strengthening regulatory oversight remain necessary to achieve broader reforms.

Previous Legislative Efforts

The latest proposal follows an earlier attempt by lawmakers to address advance rent practices in Abuja.

In 2022, former Senator Smart Adeyemi sponsored a bill seeking to reduce advance rent payments to three months, followed by monthly payments.

That proposal passed second reading in the Senate but eventually lapsed following the expiration of the Ninth National Assembly in May 2023.

The current proposal takes a different approach by retaining the possibility of annual advance payments while seeking to prohibit compulsory demands exceeding 12 months.

What Happens Next?

Following its second reading approval, the bill is expected to proceed through further legislative scrutiny, including consideration by the relevant House committee.

The process may involve detailed examination of its provisions, consultations with housing stakeholders and possible amendments before lawmakers consider it for third reading and final passage.

If approved by the House of Representatives, the legislation must also receive consideration and approval from the Senate before being transmitted to the President for assent.

Until the legislative process is completed and the law formally comes into force, the proposed restrictions remain unenforceable as provisions of the bill.

For Abuja residents, the bill’s advancement represents a potentially important development in the effort to improve tenant protection and promote greater accountability in the rental market.

However, its eventual effectiveness will depend not only on legislative approval but also on effective implementation, enforcement and the government’s broader commitment to addressing Nigeria’s housing challenges.