The House of Representatives is considering a bill that seeks to stop landlords, estate agents and property managers in the Federal Capital Territory (FCT) from demanding more than 12 months’ rent upfront.
The proposed legislation aims to protect tenants from excessive advance rent demands and unfair practices in the rental market.
Sponsored by Paul Nnamchi, representing Enugu East/Isi-Uzo Federal Constituency, and Ahmed Doro, representing Bindawa/Mani Federal Constituency, the bill also seeks to establish a regulatory authority to oversee rent payments and resolve disputes between landlords and tenants.
What the proposed FCT rent bill says
Under the bill, landlords would be prohibited from demanding more than one year’s rent as a condition for granting or renewing a tenancy.
The restriction would also cover attempts to circumvent the proposed limit through estate agents, compulsory service charges, separate agreements or repeated tenancy renewals.
However, tenants would be permitted to pay more than 12 months’ rent voluntarily, provided they initiate the arrangement without pressure, threats, discrimination or retaliation. Such agreements and payments would have to be documented in writing.
The proposed legislation would also require 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, tenancy duration, refundable deposits and additional charges, alongside the rights and responsibilities of both parties.
Proposed authority to regulate rent payments
The bill seeks to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority to enforce the proposed rules.
The authority would investigate complaints, monitor compliance, facilitate dispute resolution and order refunds where landlords unlawfully collect rent.
Under the proposal, landlords could be directed to refund unlawful rent payments within 30 days of receiving an order from the authority.
Proposed penalties for landlords and agents
The bill proposes financial penalties for individuals and corporate entities that violate its provisions.
Individuals convicted of knowingly breaching the restriction on advance rent could face fines ranging from ₦500,000 to ₦5 million.
Corporate offenders could be fined between ₦5 million and ₦20 million, while anyone who fails to comply with a valid notice issued by the authority could face a fine of up to ₦1 million.
The proposed law would also allow landlords and tenants to seek redress in court.
Anyone dissatisfied with a decision of the authority could appeal to the FCT High Court within 30 days.
Background to Nigeria’s rent regulation proposals
The proposed legislation comes amid concerns about rising accommodation costs and the financial pressure on tenants who must pay large sums upfront to secure rented homes.
Last year, the National Assembly proposed limiting rent increases nationwide to 20 per cent and called on the Federal Government to enforce the measure.
However, there has been no verified confirmation that the earlier proposal has been implemented.
The FCT rent bill remains a proposal under consideration by the House of Representatives. Its provisions should not be treated as existing law unless the legislative process is completed and the law takes effect.
Chronicle NG reports on the proposed legislation and its potential implications for landlords and tenants in the FCT.
