The House of Representatives has passed for second reading a bill seeking to regulate rental payments and curb exploitative practices by landlords and estate agents in the Federal Capital Territory (FCT), following disagreements among lawmakers over a proposed ban on compulsory multi-year rent payments.

Sponsored by Rep. Paul Sunday Nnamchi, the bill seeks to regulate advance rent payments, arbitrary rent increases and agency fees, while establishing a unified digital register for housing agents. It also provides safeguards for landlords and tenants, with penalties for violations.

Leading the debate, Nnamchi said the rising cost of accommodation and excessive demands for advance rent had placed significant financial pressure on residents, affecting household savings, small businesses and employment opportunities.

He said the proposed legislation was designed to create a fairer and more accountable rental system through the regulation of advance payments, reasonable limits on agency fees and proper identification of housing agents.

“Mr Speaker, this legislation is not intended to undermine property rights or discourage investment. Rather, it recognises that legitimate commercial interests must coexist with public protection. Landlords deserve reasonable returns.

“Agents deserve professional recognition. And tenants deserve fairness and protection from exploitation,” he said.

Supporting the bill, Rep. Idris Zacharias, representing Ida/Igalamela/Ibaji/Ofu Federal Constituency of Kogi State, described the proposal as important but called for broader consideration of land administration and housing challenges in the FCT. He also urged the inclusion of the House Committee on FCT and Area Councils in the committee that would consider the bill.

Similarly, Rep. Chinedu Ogah, representing Ikwo/Ezza South Federal Constituency of Ebonyi State, backed the proposal, citing the difficulties businesses face in securing office accommodation in Abuja.

Ogah said renting a three-bedroom office in Wuse could cost between N25 million and N30 million annually, excluding additional agency charges. He argued that regulating the market would provide clearer rules for transactions and encourage investment.

However, Rep. Leko Jafaru Gambo, representing Bogoro/Dass/Tafawa Balewa Federal Constituency of Bauchi State, called for a review of the bill’s title, arguing that the word “prohibit” should be replaced with “regulate”.

He also suggested that the legislation should apply nationwide, but Deputy Speaker Benjamin Kalu clarified that its current scope was limited to the FCT.

Rep. Ibe Okwara Osonwa, representing Arochukwu/Ohafia Federal Constituency of Abia State, also supported regulation but cautioned against an outright prohibition of multi-year rent arrangements.

Osonwa disputed claims that agency fees could reach 25 per cent, arguing that they were generally around 10 per cent.

Rep. Ayodeji Alao-Akala, representing Ogbomoso North/South/Orire Federal Constituency of Oyo State, said the bill targeted compulsory multi-year payments rather than preventing landlords from increasing rents.

He argued that demanding two years’ rent upfront placed an unreasonable financial burden on young couples and other prospective tenants.

“As a youth, when a young couple comes out of service now, and is being asked to pay two years, where will this insurance money come from?” he asked.

Alao-Akala suggested that the proposed legislation could provide for monthly, six-monthly or annual rental arrangements while preventing landlords from compelling tenants to pay several years’ rent upfront.

However, Rep. Patrick Umoh raised constitutional concerns over the proposed legislation, particularly its implications for property rights and freedom of trade. He urged the House to step down the bill for further consultations and a review of existing tenancy laws in the FCT.

Kalu acknowledged concerns about possible inconsistencies with constitutional provisions, while lawmakers drew attention to Section 44(2)(c) of the Constitution, which addresses laws relating to leases and tenancies.

Contributing to the debate, Rep. Wale Raji, representing Epe Federal Constituency of Lagos State, said previous attempts to regulate rents had failed to adequately address the problem.

He identified the widening gap between housing demand and supply as a major factor driving rental costs.

“The bill is not anti-investment. The bill is not against even the landlords or those making investment in the real estate environment or industry. This bill is of good use to both the landlords and the tenants,” he said.

The Minority Leader, Rep. Frederick Agbedi, also urged lawmakers to support the proposal, saying high rental costs in the FCT were forcing residents into overcrowded and unsuitable accommodation in satellite communities and suburban areas.

He said the bill was intended to address excesses in the rental market without discouraging investment in the property sector.

The House Leader, Rep. Julius Ihonvbere, described the legislation as important, citing the difficulties Nigerians face in securing accommodation and the activities of unregistered estate agents.

“I think this is a very important bill. And I want to thank Professor Nnamchi for thinking about it,” he said.

Ihonvbere said the bill would proceed to a public hearing, where Nigerians, professionals and other stakeholders would have the opportunity to make submissions.

He urged lawmakers to support the measure, stressing that regulating the sector should not be interpreted as an attempt to discourage property development.

“We are in a stage where we have a duty to protect Nigerians. It’s not against you to build your house. You can build as many houses as you want,” he said.

In his closing remarks, Kalu cited Section 16 of the Constitution, which provides for the promotion of citizens’ welfare and suitable and adequate shelter.

He argued that although Nigeria operates a mixed economy, sectors connected to essential human needs, including housing, require regulation and control.

“Not all sectors of the economy should be free and capitalist. Especially when it has to do with shelter, which is fundamental. So, some sectors should be regulated as well as controlled,” he said.

The bill was subsequently passed for second reading, paving the way for further legislative consideration and a public hearing where stakeholders will have the opportunity to present their views.