Reps Pass Bill to Limit Advance Rent Payments to 12 Months in FCT

The House of Representatives has passed for second reading a bill seeking to limit advance rent payments to 12 months in the Federal Capital Territory (FCT) and protect tenants against exploitative practices by landlords and estate agents.

The proposed legislation, sponsored by Paul Nnamchi, representing Enugu East/Isi-Uzo Federal Constituency, seeks to prohibit landlords and property agents from compelling tenants to pay more than one year’s rent in advance. It also proposes to regulate agency fees, prevent unlawful eviction and establish a rent regulation and tenants’ protection authority.

Leading the debate on Wednesday, Nnamchi said excessive advance rent demands had placed financial pressure on residents, affecting household savings, businesses and employment opportunities. He maintained that the bill would promote fairness and accountability in the rental market without undermining the legitimate interests of landlords and property investors.

The proposal, however, generated differing opinions among lawmakers. While some supported the need to protect tenants from exploitation, others raised concerns about property rights, freedom of trade and the possible impact of the proposed restrictions on landlords.

Some lawmakers also called for the bill to regulate rather than completely prohibit multiple-year rent arrangements. Others argued that the legislation should have nationwide coverage instead of applying only to the FCT.

The Deputy Speaker, Benjamin Kalu, who presided over the debate, acknowledged the constitutional concerns but argued that the proposal was consistent with the Constitution’s provisions on citizens’ welfare and access to adequate shelter.

Under the proposed bill, tenants would be allowed to voluntarily pay more than 12 months’ rent, provided the arrangement was not imposed by the landlord and was documented in writing.

The bill also proposes fines of between N500,000 and N5m for individuals who violate the advance-rent restriction, while corporate offenders could face penalties of between N5m and N20m.

It further seeks to establish the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority to investigate complaints, mediate disputes and enforce compliance.

The House Leader, Julius Ihonvbere, said the proposal would proceed to a public hearing to allow Nigerians and relevant stakeholders to make contributions before further legislative consideration.

The bill was subsequently passed for second reading.