Abuja Wants to Cap Advance Rent, Will It Make Housing More Affordable?

The House of Representatives has introduced a bill seeking to stop landlords in the Federal Capital Territory (FCT) from forcing tenants to pay more than one year’s rent in advance, as concerns grow over the rising cost of accommodation in Abuja.

The Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026, sponsored by Paul Nnamchi, with Ahmed Doro as co-sponsor, passed its first reading on Thursday, October 22. If passed into law, it would limit compulsory advance rent payments to 12 months, establish a rent regulation authority and prohibit unlawful eviction practices.

The proposal comes as residents grapple with rising rents, agency fees and other charges that can make securing a home in Abuja difficult.

What Does the Bill Say?

The bill proposes that landlords, estate agents and property managers must not demand or compel tenants to pay more than 12 months’ rent upfront as a condition for renting, renewing or continuing a tenancy. It would apply to both residential and commercial properties across the FCT.

It also seeks to prevent landlords from bypassing the restriction through compulsory service charges, artificial tenancy renewals or other arrangements designed to force tenants to pay more than a year’s rent at once.

Tenants could still voluntarily offer more than 12 months’ rent, provided the decision is genuinely theirs, without coercion or threats, and is documented in writing.

The bill proposes establishing a Federal Capital Territory Rent Regulation and Tenants’ Protection Authority to investigate complaints, mediate disputes, monitor rental practices and order refunds of unlawful rent payments within 30 days.

Landlords or agents who knowingly violate the proposed advance-rent restriction could face fines of between 500,000 naira and 5 million naira, while companies could face penalties of between 5 million naira and 20 million naira.

The legislation would also prohibit unlawful eviction practices, including threats, violence, disconnection of essential services, destruction of tenants’ belongings and changing locks without lawful authority. However, landlords would retain the right to recover unpaid rent and repossess properties through due legal process.

The bill has only passed its first reading and is not yet law. It must pass through further legislative stages before it can take effect.

Lagos Introduced a Similar Bill Last Year. What Is Different?

Abuja is not the first major Nigerian city to propose limits on advance rent. In July 2025, the Lagos State House of Assembly introduced the Lagos State Tenancy and Recovery of Premises Bill, 2025, which seeks to address excessive rent demands, illegal charges and disputes between landlords and tenants.

Like Abuja’s proposal, the Lagos bill seeks to prevent landlords from demanding more than one year’s rent in advance from new tenants. However, it proposes a three-month limit for sitting tenants on monthly payment arrangements.

The Lagos proposal also addresses agency fees, proposing a five percent cap on agency fees and compulsory registration for estate agents with the Lagos State Real Estate Regulatory Authority (LASRERA). It also seeks to provide mechanisms for tenants to challenge unreasonable rent increases.

The key difference is that Abuja’s proposal focuses on advance rent, unlawful evictions and the creation of a dedicated authority to handle complaints and refunds, while Lagos’ bill covers a wider range of rental practices, including agency fees and rent disputes.

Neither proposal has become law. Abuja’s bill has just passed its first reading, while Lagos’ proposed legislation was reported to be undergoing legislative consideration earlier in the year.

What Would the Bill Mean for Landlords and Tenants?

For tenants, the most immediate benefit would be a reduction in the amount of money they must raise before moving into a home. Someone earning a modest monthly salary may struggle to pay two year’s rent at once, particularly when agency, agreement and caution fees are added. Limiting compulsory advance payments could make accommodation more accessible to people who cannot afford to pay several years upfront.

The proposed authority could also provide tenants with a clearer channel for challenging unlawful charges and eviction practices. It would have the power to investigate complaints, facilitate mediation and order refunds where landlords or agents have collected rent unlawfully.

For landlords, however, the restriction could require changes to how they manage their properties. Some rely on advance rent to fund maintenance, repay loans or cover other expenses associated with their buildings. Others may be concerned about tenants defaulting on periodic payments and the time it takes to recover unpaid rent through the courts.

The proposed law does not remove landlords’ rights to collect rent or recover possession of their properties. Instead, it seeks to ensure that these rights are exercised through lawful procedures rather than intimidation or self-help.

The bill could however make it easier to pay rent without necessarily making the rent itself cheaper.

Could Abuja’s Development Drive Be Contributing to Rising Rents?

The debate over rent regulation comes as Abuja undergoes significant infrastructure and urban development under FCT Minister Nyesom Wike. Road construction, the expansion of infrastructure into satellite towns and the redevelopment of parts of the capital are changing how residents access and value different neighbourhoods.

Infrastructure development can make previously less accessible areas more attractive to residents and investors. Better roads can reduce commuting difficulties, increase demand for properties in connected neighbourhoods and raise expectations about future property values. When demand grows faster than the supply of affordable housing, rents can rise.

However, due to Wike’s land reclamation activities, there is a lot of uncertainty around land ownership. Recently, the FCT administration has intensified demolitions and land revocations. For some property owners, concerns about compliance costs, property values and the future of their investments may influence how they price their properties.

The proposed bill could provide meaningful protection for tenants, but its effectiveness will depend on enforcement. A law limiting advance rent will offer little relief if landlords can circumvent the rules through additional charges or if tenants have no accessible way to report violations.