A proposed FCT rent regulation bill seeks to limit compulsory advance rent payments
A proposed rent regulation bill before the House of Representatives could significantly change how landlords, tenants and estate agents conduct rental transactions in Abuja, introducing restrictions on advance rent payments, penalties for unlawful practices and a new regulatory authority for the Federal Capital Territory (FCT).
The Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026 (HB.2839), seeks to prohibit landlords, property managers and estate agents from compelling tenants to pay more than 12 months' rent in advance as a condition for securing, renewing or continuing a tenancy.
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Sponsored by Paul Nnamchi and co-sponsored by Ahmed Doro, the bill passed its first reading in the House of Representatives on 22 October 2026. It proposes a regulatory framework covering advance rent, tenancy agreements, additional charges, refunds, unlawful evictions and dispute resolution.
Although the proposal could ease some of the financial pressure on Abuja tenants, it also introduces new compliance responsibilities for landlords and property professionals.
The bill remains at an early stage of the legislative process and has not become law. Its proposed provisions cannot yet be enforced.
1. Landlords Would Be Restricted to 12 Months' Compulsory Advance Rent
The bill's central provision is its proposed restriction on advance rent payments.
Under Section 4, landlords, estate agents and property managers would be prohibited from demanding, receiving or compelling tenants to pay more than 12 months' rent in advance as a condition for granting, renewing or continuing a tenancy.
This means landlords would no longer be able to make two or three years' rent upfront a compulsory condition for securing accommodation if the bill becomes law.
However, the proposal does not prohibit landlords from collecting one year's rent in advance. It also does not make monthly or quarterly rent payments compulsory.
The bill provides an exception where tenants voluntarily offer to pay more than 12 months' rent. Such an arrangement must originate from the tenant, involve no coercion or threats and be documented in writing.
The person receiving the payment would bear the responsibility of demonstrating that the arrangement was genuinely voluntary.
The distinction is important because the proposed legislation seeks to prevent compulsory multi-year payments without removing the possibility of mutually agreed advance payments.
2. Estate Agents and Property Managers Would Also Be Liable
The proposed restrictions extend beyond property owners.
Estate agents, property managers and other intermediaries acting on behalf of landlords would also be covered. They would not be permitted to facilitate arrangements designed to circumvent the 12-month limit.
The bill specifically targets attempts to disguise additional rent demands through compulsory service charges, unexplained premiums, separate agreements, artificial tenancy renewals and other arrangements intended to extract more than the permitted advance payment.
This means property professionals could face consequences if they knowingly participate in practices that violate the proposed restrictions.
For real estate agencies and property management firms operating in Abuja, the legislation could require changes to existing letting procedures, payment arrangements and client agreements.
3. Written Tenancy Agreements Would Become Mandatory
The bill seeks to formalise rental transactions by requiring landlords or their authorised agents to provide written tenancy agreements.
The agreements would specify:
The amount of rent payable.
The tenancy duration.
The payment schedule.
Refundable deposits.
Agency, service and other additional charges.
The rights and responsibilities of landlords and tenants.
Landlords and agents would also be required to disclose the nature, amount and lawful basis of compulsory charges before concluding a tenancy agreement.
They would have to issue receipts or verifiable electronic acknowledgements for payments received.
For tenants, these provisions could improve transparency and provide documentary evidence when disputes arise. For landlords and agents, they would create clearer record-keeping and disclosure obligations.
4. A New FCT Rent Regulation Authority Would Oversee Compliance
One of the most significant provisions is the proposed establishment of the Federal Capital Territory Rent Regulation and Tenants' Protection Authority.
The authority would oversee the implementation of the proposed law and handle complaints involving landlords, tenants, estate agents and property managers.
Its responsibilities would include investigating rental disputes, monitoring compliance, issuing notices, facilitating mediation and ordering refunds where it establishes that landlords or agents collected unlawful payments.
The authority would also establish complaint offices and electronic reporting channels across the FCT, including satellite towns.
Its proposed governing board would include representatives of the FCT Administration, relevant federal ministries, tenants, landlords and property professionals.
The proposal also provides for the appointment of a director-general and other administrative officials to manage the authority's operations.
If enacted, this would introduce a dedicated regulatory institution into Abuja's rental market, potentially changing how tenancy disputes and complaints are handled.
5. Tenants Could Recover Unlawfully Collected Rent
The proposed legislation would give tenants a formal route to seek refunds where landlords or agents collect advance rent in violation of the law.
Under Section 7, a tenant who pays rent contrary to the proposed 12-month restriction could apply to the authority for a refund order.
Where the authority determines that the payment violated the legislation, it could direct the recipient to return the unlawful amount within 30 days of receiving the order.
The bill also provides for appeals to the FCT High Court where an affected party disagrees with the authority's decision.
This provision could strengthen tenant protection by creating a specific administrative mechanism for recovering unlawful payments rather than leaving affected residents to rely entirely on lengthy disputes.
6. Landlords and Companies Could Face Heavy Financial Penalties
The bill proposes financial penalties for landlords, agents and corporate bodies that knowingly violate its provisions.
Individuals convicted of demanding or receiving unlawful advance rent could face fines ranging from ₦500,000 to ₦5 million.
Corporate bodies could face fines between ₦5 million and ₦20 million.
The court could also order refunds, compensation for proven losses and payment of lawful costs.
Failure to comply with a valid compliance notice issued by the proposed authority would constitute another offence, punishable by a fine of up to ₦1 million.
These provisions could increase the regulatory risks associated with rental transactions and make compliance more important for property owners and real estate businesses.
7. Unlawful Evictions and Harassment Would Be Prohibited
The proposed bill also addresses how landlords recover possession of their properties.
It seeks to prohibit practices such as threatening or using violence against tenants, disconnecting essential services, removing or damaging tenants' belongings and changing locks without lawful authority.
These measures are intended to prevent landlords from using intimidation or other forms of self-help to force tenants out of rented properties.
However, the proposal does not remove landlords' rights to recover unpaid rent or repossess their properties. It recognises their right to pursue possession through lawful procedures.
The proposed framework therefore seeks to strengthen tenant protection while preserving landlords' ability to enforce legitimate property rights.
8. The Bill Does Not Cap Rent or Guarantee Monthly Payments
Despite its proposed restrictions, the legislation does not directly control how much landlords can charge for accommodation.
It introduces no rent ceiling and does not establish a maximum percentage for annual rent increases.
A landlord could therefore continue charging a high annual rent, provided the amount complies with applicable laws.
The bill also does not require landlords to accept monthly or quarterly payments. They could still insist on a full year's rent upfront, as long as they do not compel tenants to pay beyond the proposed 12-month limit.
This is an important distinction for salary earners and other workers who receive income monthly but struggle to raise a full year's rent at once.
The proposal also does not establish comprehensive ceilings for agency fees, agreement fees or caution deposits. Although it requires disclosure of additional charges and seeks to prevent fees from being used to circumvent the advance-rent restriction, tenants could still face substantial upfront expenses.
Consequently, limiting advance rent alone may not resolve Abuja's wider housing affordability challenges.
9. What the Proposed Law Means for Landlords and Tenants
For tenants, the proposed legislation could reduce the amount of money required upfront to secure accommodation, improve transparency in rental agreements and create formal channels for reporting unlawful practices.
It could also strengthen protection against arbitrary eviction methods and provide a mechanism for recovering unlawfully collected rent.
For landlords, the bill would introduce clearer rules governing advance payments, tenancy documentation, additional charges and property recovery procedures.
Estate agents and property managers would also need to ensure that their letting arrangements comply with the proposed restrictions.
However, the legislation's eventual impact will depend on the effectiveness of enforcement, the resources available to the proposed authority and how disputes over voluntary advance payments are resolved.
For property investors, the proposed changes also raise questions about rental income management, tenant screening and the financial arrangements used to maintain and manage residential properties.
10. What Happens Next in the Legislative Process?
The bill passed its first reading in the House of Representatives on 22 October 2026. It must still pass through several stages before becoming law.
The next major stage is second reading, when lawmakers will debate its general principles and decide whether it should proceed for further consideration.
If it advances, the relevant House committee will examine its provisions, potentially invite submissions from landlords, tenants, estate agents and housing professionals, and recommend amendments.
The House will subsequently consider the committee's report before voting on the bill at third reading.
If passed, the proposal will proceed to the Senate for consideration. Both chambers must approve the same version before it can be transmitted to the President for assent.
Until that process is completed and the legislation comes into force, landlords and tenants should continue to distinguish between the proposed provisions and the existing legal framework governing their tenancy arrangements.
For Abuja's property market, the bill represents a significant attempt to formalise rental practices and address the financial pressure associated with advance rent payments. Whether it delivers meaningful improvements will depend not only on its passage but also on the quality of its implementation and the extent to which it addresses the wider causes of housing unaffordability.
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