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The House of Representatives has advanced a bill seeking to reform the rental market in the Federal Capital Territory (FCT), proposing restrictions on advance rent payments, regulation of housing agency practices and measures to protect tenants against arbitrary increases.

The proposed legislation, known as the Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026, passed second reading during plenary on Wednesday.

The bill, sponsored by Paul Nnamchi and co-sponsored by Ahmed Doro, seeks to establish a regulatory framework for rental transactions and address practices that lawmakers say have increased the financial burden on residents seeking accommodation in Abuja.

One of its major provisions 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 or renewing a tenancy.

The proposal is expected to address the widespread practice of demanding two or more years’ rent upfront, which has made securing accommodation difficult for many workers, families and small business owners.

The legislation also seeks to prevent landlords and agents from circumventing the proposed restriction through compulsory service charges, artificial tenancy renewals, separate agreements or other arrangements designed to extract additional payments from tenants.

However, tenants would still be permitted to voluntarily pay more than one year’s rent where the arrangement is initiated without coercion and properly documented.

The bill also proposes the establishment of a unified digital register for housing agents operating within the FCT to improve transparency and accountability in the property market.

Under the proposed framework, agency fees would be subject to reasonable limits, while landlords and property managers would be required to provide clear information about rental charges and tenancy conditions.

Another important provision seeks to address arbitrary rent increases by requiring landlords to communicate proposed adjustments in writing, stating the new amount, effective date and basis for the increase.

The legislation also seeks to establish an authority responsible for receiving complaints, investigating violations and facilitating dispute resolution between landlords, tenants and property agents.

Leading the debate, Nnamchi said the proposed law was intended to create a more transparent and accountable housing system while protecting the interests of both property owners and tenants.

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He argued that excessive rental demands had placed considerable pressure on household finances, affecting savings, business activities and employment mobility.

The proposal has also generated debate over the extent of government intervention in private property transactions and the need to balance tenants’ protection with landlords’ rights.

If passed by the National Assembly and assented to by the President, the legislation would introduce a new regulatory framework for rental transactions in Abuja.

The bill has been referred for further legislative consideration following its passage through second reading.

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Amarachi Ihesiulo

Ihesiulo Grace Amarachi is a Nigerian journalist, writer and media professional serving as the Editor-in-Chief of TheTraffic.NG, a digital news platform covering national and international affairs. Her editorial interests span politics, business, aviation, health, technology, entertainment, sports and social development. She is committed to credible journalism, insightful reporting and compelling storytelling that informs public discourse and keeps readers abreast of important developments in Nigeria, Africa and beyond.

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