Reps Move To Control Abitrary Rent Increments In Abuja

The House of Representatives has passed, for second reading, a bill titled “A Bill for an Act to regulate rental payments, prohibit compulsory multiple-year rent demands, housing agency practices, and rent increases in the Federal Capital Territory (FCT), Abuja.”

Sponsored by the member representing Enugu East/Isi-Uzo Federal Constituency of Enugu State, Hon. Paul Nnamchi, the bill seeks to establish a unified digital register for housing agents, prescribe agency fees, and protect landlords and tenants.

The proposal seeks to limit advance rent demands to 12 months, regulate agency fees, protect tenants against unlawful eviction and establish a regulatory authority to oversee rental transactions in the FCT.

The bill equally proposes fines of up to N20m for corporate offenders who violate its provisions. In contrast, individuals convicted of breaching the proposed advance-rent restriction could face fines ranging from N500,000 to N5 million.

In a lead debate on the bill’s general principles, Nnamchi expressed concern that excessive rental demands had placed considerable financial pressure on residents, affecting household savings, small businesses, and employment mobility.

The lawmaker said the bill intends to establish a fairer and more accountable rental framework through the regulation of advance payments, a unified platform for identifying housing agents, reasonable limits on agency fees and protection against coercive practices.

“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,” Nnamchi submitted.

He stated that a properly regulated rental market would promote transparency, certainty and accountability, protect consumers and improve confidence in the housing sector.

“The responsibility of legislation is not merely to protect economic transactions, but also to ensure that those transactions do not become instruments of undue hardship or exploitation.

“Access to decent accommodation should not be determined by one’s ability to make extraordinary advance payments. Fairness, accountability and the protection of legitimate interests must remain the guiding principle of our rental markets. Mr Speaker, I so move,” Nnamchi maintained.

Lawmakers were sharply divided over the proposed legislation, with some questioning the constitutionality of imposing restrictions on landlords’ property rights and freedom of trade, and others accepting that regulation was necessary to protect tenants from exploitation.

In his debate, the lawmaker representing the Idah/Igalamela-Ibaji/Ofu federal constituency of Kogi State, Hon. Idris Zacharias, argued that the bill is important but urged the House to consider broader land and housing issues in the FCT.

The lawmaker also called for the House Committee on FCT and Area Councils to be involved in the committee considering the proposal.

Also, member representing Ikwo/Ezza South Federal Constituency of Ebonyi State, Hon. Chinedu Ogah, backed the bill, insisting that high rents and agency fees were making it increasingly difficult for businesses to establish offices in Abuja.

The lawmaker cited the cost of renting a three-bedroom office in Wuse, which he said “ranges between N25m and N30m annually, with agency fees further increasing the financial burden.”

The lawmaker representing Bogoro/Dass/Tafawa Balewa federal constituency of Bauchi State, Hon. Jafaru Gambo, also supported the bill but argued that the word “prohibit” in its title should be replaced with “regulate.”

“The bill should have nationwide coverage, not just the FCT. Mr Speaker, this is my amendment to the bill,” the lawmaker said.

Furthermore, the member representing Arochukwu/Ohafia Federal Constituency of Abia State, Hon. Ibe Osonwa, supported regulation but cautioned against a blanket prohibition on multi-year rent demands.

“This is a free market situation. In a free market economy, are we now going to, for every good or service that is sold outside, start to tell people how to trade in their own businesses?” he asked.

Osonwa argued that some circumstances could justify multiple-year rental arrangements, adding that the legislation should focus on regulation and clearly defined conditions rather than an outright prohibition.

Also speaking, member representing Epe federal constituency of Lagos State, Hon. Wale Raji, said previous attempts to regulate rents had not adequately addressed the problem, arguing that the widening gap between housing demand and supply remained a major factor driving rental costs.

Supporting the bill, Minority Leader Frederick Agbedi said the high cost of accommodation in the FCT was forcing residents into overcrowded and unsuitable living conditions in satellite towns and surrounding suburbs.

“…A free market economy does not assume that everything has to be free. Because of the way rent is being increased in FCT, a lot of people have moved to the suburbs, where living conditions are pathetic. This bill is intended to cure some of these excesses. That you built a house at N1m today does not mean you must rent it out at N100m today,” he added.

Majority Leader of the House, Hon. Julius Ihonvbere, also supported the proposed legislation, citing the difficulties residents encounter 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 proposal would proceed to a public hearing, where Nigerians, professionals and other stakeholders would have the opportunity to make contributions.

“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 added.

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

He argued that Nigeria operated a mixed economy in which certain sectors, particularly those connected to essential needs such as housing, could be regulated in the public interest.

“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.