The Nigerian House of Representatives is considering the Federal Capital Territory Advance Rent Regulation and Tenants’ Protection Bill, 2026 (HB.2839), after it cleared its first reading on 22 October 2026. The proposal seeks to cap compulsory advance rent at twelve months, introduce written tenancy agreements, and create a dedicated rent‑regulation authority for the FCT.
Key points of the draft legislation include:
- A landlord, estate agent or property manager may not demand, receive or force a tenant to pay more than twelve months’ rent in advance (Section 4(1)).
- The bill allows voluntary payments beyond twelve months only if the tenant initiates the offer without coercion (Section 4(4)).
- Written tenancy agreements must disclose rent, payment schedule, fees, deposits and the rights of both parties (Section 5).
- A new Federal Capital Territory Rent Regulation and Tenants’ Protection Authority will investigate complaints, issue compliance notices and order refunds (Section 8).
- Offenders could face fines ranging from ₦500,000 to ₦20 million, plus possible refunds and compensation.
What does the bill actually prohibit?
The core restriction is set out in Section 4, which makes it an offence for any landlord or their agent to compel a tenant to pay more than a year’s rent up front as a condition for granting, renewing or continuing a tenancy. The law does not ban advance rent altogether; it merely establishes twelve months as the ceiling for compulsory payments.
Can tenants still pay more than a year’s rent?
Yes. Section 4(4) creates an exception for voluntary payments. If a tenant independently offers to pay a larger sum and does so without any pressure, threat or discrimination, the payment is permissible, provided it is recorded in writing and the recipient can prove compliance.
How will tenancy relationships be formalised?
Section 5 mandates that landlords or authorised agents provide a written agreement that clearly states the rent amount, payment timetable, duration, refundable deposits, any fees and the respective obligations of both parties. It also requires disclosure of any compulsory charges before the contract is signed and the issuance of receipts or electronic acknowledgements for all payments.
What recourse do tenants have if they are overcharged?
Section 7 creates a refund mechanism. A tenant who believes they have paid rent in breach of the twelve‑month limit may apply to the proposed authority for a refund order. If the authority finds the payment unlawful, it can order the landlord to return the excess amount within thirty days, with the possibility of appealing the decision to the FCT High Court.
What enforcement powers will the new authority possess?
Under Section 8, the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority will receive complaints, monitor landlords and agents, issue compliance notices, facilitate mediation, order refunds and refer criminal matters to law‑enforcement agencies. It will operate through offices and electronic reporting channels across the FCT and will publish periodic reports on rental practices.
What penalties are envisaged for violations?
Individuals found guilty of demanding or receiving unlawful advance rent could be fined between ₦500,000 and ₦5 million, while corporate bodies may face fines of ₦5 million to ₦20 million. Non‑compliance with a compliance notice could attract a fine of up to ₦1 million, and courts may also order restitution and costs.
Does the bill address unlawful evictions?
Yes. It prohibits landlords from using violence, threats, utility disconnections, lock‑changes without lawful authority or any other self‑help measures to evict tenants. At the same time, it reaffirms that tenants must continue to pay rent lawfully due and that landlords retain the right to recover possession through due process.
Will limiting advance rent make housing cheaper?
The legislation caps the amount that can be demanded upfront but does not set a ceiling on the level of rent itself or on annual rent increases. Consequently, landlords may still charge high rents, and the bill does not tackle broader issues such as affordable‑housing shortages, construction costs or mortgage access. Its impact will largely depend on how effectively the new authority enforces the rules.
What gaps remain in the proposal?
While Section 5 requires disclosure of agency fees, agreement fees and caution deposits, it does not prescribe maximum percentages or amounts for these charges. Tenants could still face substantial upfront costs even if the twelve‑month advance rent limit is enforced. Moreover, the bill does not obligate landlords to accept monthly or quarterly payments, meaning many salaried workers may still struggle to raise a full year’s rent at once.
How does this bill differ from earlier attempts?
A similar bill was introduced in the Senate in January 2022 by Senator Smart Adeyemi, which sought to replace the annual advance payment system with an initial three‑month payment followed by monthly instalments. That proposal lapsed in 2023. The current 2026 bill is less ambitious, allowing landlords to continue demanding up to twelve months’ rent in advance, thereby leaving the annual payment structure largely intact.
What are the next steps in the legislative process?
Having cleared the first reading, HB.2839 now proceeds to a second reading where members will debate its principles. If approved, it will be referred to the relevant House committee for clause‑by‑clause scrutiny, public hearings and possible amendments. Successful passage through committee and third reading will send the bill to the Senate for concurrence, after which any differences must be reconciled before presidential assent can enact the law.
When could the new authority become operational?
The bill stipulates that the Federal Capital Territory Rent Regulation and Tenants’ Protection Authority should be functional within six months of the law’s commencement, with the FCT minister expected to appoint its board and director‑general within three months of the president’s gazette notice.
Until the bill completes all legislative stages and receives presidential assent, its provisions remain proposals and cannot be enforced against landlords or agents.