The House of Representatives has begun consideration of a bill seeking to regulate advance rent payments and protect tenants from unlawful rental practices in the Federal Capital Territory, Abuja.
The proposed Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026, seeks to prohibit landlords, estate agents and property managers from compelling tenants to pay more than 12 months’ rent in advance.
The bill, numbered HB.2839 and jointly sponsored by Paul Nnamchi of the All Progressives Congress, representing Enugu State, and Ahmed Doro of the Peoples Democratic Party, representing Katsina State, passed first reading on Thursday, October 22.
Under the proposed legislation, anyone convicted of knowingly demanding or receiving unlawful advance rent could face a fine ranging from 500,000 naira to five million naira, while corporate bodies could be fined between five million and 20 million naira.
The bill, however, does not prohibit voluntary payments exceeding one year’s rent, provided the tenant initiates the arrangement without coercion, threats, discrimination or retaliation, and the agreement is documented in writing.
It also does not compel landlords to accept monthly or quarterly rent payments, meaning tenants could still be required to pay a full year’s rent upfront.
Beyond advance rent, the proposed legislation seeks to strengthen tenancy agreements by requiring landlords and authorised agents to provide written contracts detailing rental amounts, payment schedules, tenancy duration, refundable deposits, other charges and the rights and obligations of both parties.
It further prohibits landlords and agents from imposing undisclosed compulsory charges and retaliating against tenants who refuse unlawful payments or report violations.
To strengthen enforcement, the bill proposes the establishment of the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority.
The proposed authority would investigate complaints, monitor rental practices, issue compliance notices, facilitate mediation and order refunds where rent has been collected in violation of the law.
Under the bill, tenants who have paid unlawful advance rent could apply to the authority for a refund, with recipients required to return the affected amount within 30 days of being served with an order.
Aggrieved parties would also have the right to appeal the authority’s decisions to the FCT High Court.
The legislation also targets unlawful eviction practices, including threats or violence, disconnection of essential services, removal or damage to tenants’ property and changing locks without lawful authority.
However, it preserves landlords’ rights to recover outstanding rent and possession of their properties through due process.
Despite its proposed protections, the bill does not establish a ceiling on rental prices or limit increases when tenancy agreements are renewed.
It also leaves unresolved concerns over agency fees, agreement charges and caution deposits, which can significantly increase the cost of securing accommodation in Abuja.
Although landlords and agents would be required to disclose these charges before concluding tenancy agreements, the bill does not prescribe maximum amounts or percentages for such payments.
The proposal is also less far-reaching than a similar bill introduced in the Senate in 2022 by former Senator Smart Adeyemi, which sought to replace the prevailing annual advance payment system with an initial three months’ rent followed by monthly payments.
That bill passed second reading but lapsed following the expiration of the Ninth National Assembly in May 2023.
The 2026 proposal, therefore, seeks to limit compulsory advance rent to one year without making monthly rent payments mandatory.
Having passed first reading, HB.2839 is still at an early stage of the legislative process and must undergo further debate, committee scrutiny and voting before it can be passed by the National Assembly.
If approved by both chambers and assented to by the President, the legislation would establish a new regulatory framework for tenancy in the FCT.
Until then, the proposed restrictions and penalties remain legislative proposals and are not yet enforceable.
