A bill seeking to prohibit landlords and agents in the Federal Capital Territory from demanding more than twelve months’ rent in advance has scaled second reading in the House of Representatives.
The Federal Capital Territory Rental Payments (Regulation) Bill, 2026 (HB. 2839), sponsored by Hon. Paul Sunday Nnamchi (APC, Enugu) with Hon. Ahmed Doro (APC, Katsina) as co-sponsor, was read for the first time on 22 October 2026 and taken for second reading at plenary session of Wednesday, 4 November 2026. It seeks to regulate rental payments, prohibit compulsory multiple-year rent demands, regulate housing agency practices and rent increases in the Territory, and provide protections for both landlords and tenants.
Leading the debate, Hon. Nnamchi told the House that the bill addressed “a matter of significant public interest: the growing difficulty ordinary Nigerians face in accessing decent and affordable accommodation” noting that the bill, seeks to establish a fairer and more accountable rental framework through the regulation of advance rental payments, a unified platform for registering housing agents, reasonable limits on agency fees, safeguards against arbitrary rent increases and coercive practices, and appropriate penalties for non-compliance.
Hon. Nnamchi explained that the bill is not intended to undermine property rights or discourage investment but to a necessary public-interest intervention and an important step towards a more transparent, equitable and responsible rental housing system in the Federal Capital Territory.
Key provisions of the Bill:
- Advance rent (s. 3): Landlords cannot compulsorily demand more than 12 months’ rent in advance, and any compulsory excess is unenforceable. Calling the excess a deposit, premium, or administrative charge does not avoid the rule, but voluntary, non-coercive arrangements remain permitted.
- Coercive practices (s. 4): Landlords and agents cannot demand undisclosed charges, threaten or unlawfully evict a tenant for refusing an unlawful demand, or unlawfully disconnect essential services. False statements about rent, availability, ownership, or tenancy terms are also barred.
- Tenancy terms (s. 5): Receipts are mandatory. Tenancy agreements must state the rent, duration, payment schedule, agency fees, deposits, and rent review conditions, and undisclosed fees cannot be recovered.
- Agent registration (ss. 6-7): Establishes the Federal Capital Territory (FCT) Rent and Housing Regulatory Authority. Housing Agents must be registered and licensed by the Authority through a unified digital platform that the public can search. Licences can be suspended or revoked for fraud, repeated overcharging, collusion, rent manipulation, or other serious misconduct, subject to fair hearing.
The Authority is empowered to investigate complaints, monitor landlords and agents, issue compliance notices, mediate disputes, order refunds, and refer suspecte offences for prosecution.
- Agency fees (s. 8): Fees are capped at 5% of annual rent, or a lower prescribed rate, and must be disclosed in writing before the tenant commits. Hidden and duplicate charges are banned. Any charge to both landlord and tenant for the same service requires prior written disclosure and lawful agreement, and the combined total cannot exceed the cap.
- Rent manipulation (ss. 9 and 11): Agents cannot inflate a landlord’s stated rent, collude to create artificial scarcity, or use false listings or fabricated competing tenants. Rental advertisements must disclose the actual annual rent and material charges.
- Rent increases (s. 10): Arbitrary, deceptive, or retaliatory increases are prohibited. Proposed increases must be in writing and state the new rent, effective date, and basis. Tenants can challenge them before the Authority or a court, and the Authority must set a rent-review framework, which may include percentage limits.
- Complaints and redress (ss. 12-13 and 15): The Authority must create an accessible complaints mechanism, may facilitate mediation, and can investigate suspected violations. The Authority or a court may order refunds of unlawful payments, and parties keep their right to go to court.
- Existing tenancies (s. 18): Current agreements remain valid, subject to applicable law, but renewals, extensions, and new transactions must comply. The Authority may give existing agents up to six months after commencement to register.
Penalties (s. 14)
| Violation | Penalty on conviction |
| Knowingly contravening s. 4 | Fine of at least ₦500,000, up to 6 months’ imprisonment, or both |
| Operating unregistered or charging an unlawful agency fee | Fine of at least ₦500,000, plus a refund of any unlawful charge |
| Deliberate rent manipulation, fraudulent advertising, or collusion to inflate rents | Fine of at least ₦1,000,000, up to 12 months’ imprisonment, or both |
Repeat offenders may face increased fines, licence suspension or revocation, and restitution. Directors, managers, or officers who knowingly authorised or participated in a corporate offence may also be liable.
The Bill was uanmimously adopted and referred to the Committee on FCT for further legislative action.
