The Nigerian House of Representatives has begun consideration of a bill aimed at regulating advance rent payments and protecting tenants in the Federal Capital Territory (FCT). The Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026, seeks to create a regulatory framework for tenancy in the FCT, covering advance payments, written agreements, agents, complaints, refunds, eviction practices, penalties, and dispute resolution. The bill, jointly sponsored by Paul Nnamchi and Ahmed Doro, passed its first reading on October 22.
The proposed law aims to address the challenges faced by many residents of the FCT in securing a roof over their heads. Currently, prospective tenants often have to pay hundreds of thousands, and sometimes millions, of naira at once, beyond the annual rent itself. They also have to contend with agency, agreement, and caution fees, while existing tenants face rent increases that can force them to move to less expensive and sometimes more distant communities.
A key provision of the bill is Section 4, which states that a landlord, estate agent, or property manager “shall not demand, receive or compel a tenant to pay more than twelve months’ rent in advance” as a condition for granting, renewing, or continuing a tenancy. This means that demanding two or three years' rent as a condition for granting or renewing a tenancy would become an offence if the bill becomes law. However, a landlord would still be able to collect one year’s rent in advance if that is the agreed arrangement.
The bill also attempts to prevent landlords and agents from finding another way around the restriction. It lists intermediaries, unexplained premiums, compulsory service charges, artificial renewal or re-grant of a tenancy, separate agreements, and other arrangements designed to extract more than 12 months’ rent in advance as prohibited means of evasion. Tenants can still voluntarily pay more than a year’s rent in advance if the tenant initiates the offer and the payment is not imposed by the landlord.
The proposed law also seeks to formalise the relationship between landlords and tenants. Landlords or their authorised agents would be required to provide written tenancy agreements stating the rent, payment schedule, duration of the tenancy, refundable deposits, fees, and other charges, and the rights and obligations of both parties. They would also be required to disclose the nature, amount, and legal basis of compulsory fees before a tenancy agreement is concluded and issue receipts or verifiable electronic acknowledgements for payments.
The bill introduces a mechanism for recovering unlawfully collected rent. A tenant who has paid rent in violation of the proposed 12-month limit could apply to the proposed FCT Rent Regulation and Tenants’ Protection Authority for a refund. The authority would receive and investigate complaints, monitor landlords, estate agents, and property managers, issue compliance notices, facilitate mediation, order refunds, and refer suspected criminal offences to relevant law-enforcement or prosecuting authorities.
The bill proposes financial penalties for landlords who violate the law. A person convicted of knowingly demanding or receiving unlawful advance rent would face a fine of between ₦500,000 and ₦5 million. A corporate body could face a fine of between ₦5 million and ₦20 million. The court could also order refunds, compensation for proven losses, and payment of lawful costs.
Key points
- The bill aims to regulate advance rent payments and protect tenants from unlawful rental practices in Abuja.
- The proposed law seeks to create a regulatory framework for tenancy in the FCT, covering advance payments, written agreements, agents, complaints, refunds, eviction practices, penalties, and dispute resolution.
- The bill proposes financial penalties for landlords who violate the law, including fines of between ₦500,000 and ₦20 million.
