All you need to know about the proposed law to cap advance rent in Abuja

A House of Representatives bill would bar Abuja landlords and agents from demanding more than 12 months’ rent in advance, with fines of up to ₦20 million and a new tenants’ protection authority to enforce it, but it sets no rent ceiling or cap on agency fees, Premium Times reports.

A bill before the House of Representatives seeks to regulate advance rent in the Federal Capital Territory (FCT), Premium Times reports. Here are the key points.

1. The bill: The Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026 (HB.2839), sponsored by Paul Nnamchi and Ahmed Doro, passed first reading on October 22.

2. 12-month cap: Landlords, agents and property managers may not demand more than 12 months’ rent in advance. Advance rent is not banned, and a year’s payment upfront is still allowed.

3. Voluntary payment: A tenant may pay more than 12 months only if the tenant initiates the offer, in writing and without coercion. The recipient must prove compliance.

4. Agreements and fees: Landlords and agents must issue written tenancy agreements, disclose compulsory fees before signing and give receipts.

5. Refunds: A tenant who overpaid can apply to the new authority, which may order a refund within 30 days. Appeals go to the FCT High Court.

6. New authority: The FCT Rent Regulation and Tenants’ Protection Authority would handle complaints, issue compliance notices, mediate disputes and refer suspected crimes for prosecution.

7. Penalties: Individuals face fines of ₦500,000 to ₦5 million, and companies ₦5 million to ₦20 million. Ignoring a compliance notice carries a fine of up to ₦1 million.

8. Evictions: Violence, threats, utility disconnections and changing locks without lawful authority are prohibited. Tenants must still pay rent due.

9. What it does not cover: Premium Times notes there is no rent ceiling, no cap on agency fees, which it says can reach 40 per cent of rent in some Abuja cases, no deposit formula, and no requirement to accept monthly payments.

10. Earlier attempt: A 2022 Senate bill by Smart Adeyemi proposed monthly payments. It lapsed in May 2023.

11. Next steps: Second reading, committee scrutiny, House passage, Senate approval and presidential assent. It cannot be enforced until enacted.