A proposed bill before the House of Representatives seeks to stop landlords and estate agents in the Federal Capital Territory (FCT) from demanding more than 12 months’ rent in advance from tenants.

The proposed legislation, known as the Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026 (HB.2839), is designed to regulate rent payments and protect tenants against unfair rental practices.

The bill is jointly sponsored by Paul Nnamchi, representing Enugu State, and Ahmed Doro of Katsina State. It passed its first reading on Thursday, October 22, 2026.

Under the proposal, landlords, estate agents and property managers would not be allowed to demand more than one year’s rent as a condition for renting or renewing a property.

However, tenants would still be allowed to voluntarily pay more than 12 months’ rent if they make the offer themselves without pressure or threats from the landlord. Such arrangements must also be documented in writing.

The bill also seeks to make written tenancy agreements compulsory. These agreements must clearly state the rent, payment schedule, tenancy duration, refundable deposits, additional charges and the responsibilities of both landlords and tenants.

Landlords and agents would also be required to explain all compulsory fees before an agreement is signed and provide receipts or verifiable electronic proof of payment.

Proposed Refunds for Tenants

The bill proposes the establishment of the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority.

The proposed authority would receive complaints, investigate rental disputes, monitor landlords and agents, facilitate mediation and order refunds where tenants have been charged rent unlawfully.

Where an unlawful payment is established, the authority could order the recipient to refund the affected amount within 30 days.

Penalties for Landlords and Agents

Under the proposed law, individuals found guilty of demanding or receiving unlawful advance rent could face fines ranging from ₦500,000 to ₦5 million.

Corporate organisations could face penalties between ₦5 million and ₦20 million.

The bill also seeks to prohibit unlawful eviction practices, including threatening tenants, disconnecting essential services, removing their belongings or changing locks without legal authority.

However, landlords would retain the right to recover rent and possession of their properties through established legal procedures.

Will the Proposed Law Reduce House Rent?

Although the bill seeks to limit advance rent payments, it does not place a limit on how much landlords can charge for their properties.

Landlords would still be allowed to determine their rental prices and increase them when tenancy agreements are renewed.

The proposal also does not establish maximum charges for agency fees, agreement fees or caution deposits.

This means tenants could still face high costs when securing accommodation, even if the bill becomes law.

The proposal also does not compel landlords to accept monthly or quarterly rent payments. A landlord could still demand a full year’s rent upfront, provided the payment does not exceed 12 months.

Previous Attempt to Regulate Rent Payments

This is not the first time lawmakers have attempted to regulate advance rent payments in Abuja.

In January 2022, the Senate introduced a similar bill sponsored by former Senator Smart Adeyemi.

Unlike the current proposal, the 2022 bill sought to reduce advance rent payments for new tenants to three months, followed by monthly payments.

However, the bill did not become law before the end of the Ninth National Assembly in May 2023.

What Happens Next?

The 2026 bill is still at an early stage of the legislative process after passing its first reading in the House of Representatives.

It must pass second and third readings before being sent to the Senate for consideration.

Both chambers must approve the same version of the bill before it can be forwarded to the President for assent.

Until the legislative process is completed and the law officially takes effect, the proposed restrictions and penalties cannot be enforced.

If passed and signed into law, the legislation would establish a new regulatory framework for rental transactions and tenant protection across the Federal Capital Territory.