Reps propose ₦5m fine for Abuja landlords demanding over one year’s rent

Landlords in the Federal Capital Territory (FCT) who demand multi-year advance rent payments from prospective tenants could face fines of up to ₦5 million under a new bill currently before the House of Representatives.

The proposed legislation, sponsored by lawmakers Paul Nnamchi and Ahmed Doro, seeks to curb exploitative rental practices in Abuja, where tenants are frequently pressured to pay two to three years of rent upfront just to secure basic accommodation.

Under the provisions of the bill, any individual who knowingly demands or receives rent exceeding 12 months commits an offense punishable by a fine ranging from ₦500,000 to ₦5 million. For corporate landlords and registered real estate firms, the penalties are significantly steeper, carrying fines between ₦5 million and ₦20 million.

A regulatory body to protect tenants

Beyond penalizing defaulting landlords, the bill provides for the establishment of a dedicated rental regulatory authority. This agency would be empowered to investigate tenant complaints, monitor market compliance, resolve landlord-tenant disputes, and order immediate restitution.

Crucially, the regulatory body can direct landlords to refund any unlawful rent payments collected in excess of the 12-month limit within 30 days of issuing an order. Failure to comply with an authorized notice carries an additional fine of up to ₦1 million.

Furthermore, the legislation mandates that landlords and authorized property agents provide a formal written tenancy agreement before or at the commencement of any lease. The agreement must clearly state the rent amount, payment schedule, duration, refundable security deposits, additional service charges, and the explicit rights and obligations of both parties.

Relief for overburdened Abuja renters

The legislative move addresses a long-standing grievance for middle- and low-income earners in Abuja, where rapid urbanization, surging inflation, and soaring construction costs have driven housing prices sky-high. In many high-demand neighborhoods across the capital, property owners and agents routinely demand two to three years of rent upfront, locking out millions of citizens and fueling urban poverty.

Housing advocates and tenants’ associations have consistently warned that exorbitant advance payment demands leave households with little disposable income for food, healthcare, and education.

A Lagos-based real estate analyst who spoke on the structural challenges of Nigeria’s rental market noted that while regulatory frameworks are welcome, enforcement will be key to protecting vulnerable renters.

“The practice of demanding multi-year advance rent has always placed an unbearable strain on average Nigerian workers,” the analyst noted. “If properly enforced, capping advance payments at 12 months will inject much-needed sanity into the housing market and protect tenants from predatory landlords.”

To ensure fairness, the bill maintains robust legal safeguards. Both landlords and tenants retain the right to seek legal redress, with provisions allowing any aggrieved party to appeal decisions made by the regulatory authority to the FCT High Court within 30 days.

For the bill to become law, it must successfully pass through both chambers of the National Assembly—the House of Representatives and the Senate—and receive presidential assent from President Bola Ahmed Tinubu.