By Jelili Gbadamosi
The House of Representatives has proposed fines of up to N20 million for landlords, estate agents and property managers in the Federal Capital Territory (FCT) who violate proposed regulations on advance rent payments and tenancy charges.
The proposed sanctions are contained in the Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026, which has passed second reading in the House.
The bill, sponsored by Paul Nnamchi, representing Enugu State, and co-sponsored by Ahmed Doro from Katsina State, seeks to prohibit landlords and property managers from demanding more than 12 months’ rent in advance from tenants.
If passed into law, the regulation will apply to both residential and commercial properties across the FCT.
It also seeks to address practices through which landlords and agents allegedly circumvent advance rent restrictions by imposing compulsory service charges, agreement fees and fictitious renewal payments.
The proposed legislation further seeks to regulate agency and agreement fees, which can reportedly reach 25 per cent of annual rent, while introducing a digital register for estate agents operating in Abuja.
To ensure compliance, the bill proposes the establishment of the FCT Rent Regulation and Tenants’ Protection Authority.
The proposed authority will be responsible for receiving tenancy complaints, investigating violations and directing landlords or agents to refund illegally collected payments within 30 days.
Under the proposed penalties, individual offenders could face fines ranging from N500,000 to N5 million, while companies found guilty could be fined between N5 million and N20 million.
The bill is part of efforts by lawmakers to address excessive rent demands and protect tenants from exploitative practices in the FCT.
