Nigeria: What You Should Know About FCT Rent Regulation Bill

As residents continue to grapple with high cost of rent in the Federal Capital Territory (FCT), the National Assembly has begun move to curtail incessant rent increament with the introduction of the FCT Rent Regulation and Tenants' Protection Bill, 2026.

Daily Trust reports that the high cost of rent has become a huge challenge in Nigeria's administrative capital and other big cities in the country, with rents rising to over 200 per cent

The situation has stretched the finances of many residents who lamented the situation, while calling on government to act.

What the bill means

Checks show that the House of Representatives introduced the bill to address rising accommodation costs and strengthen protections for tenants in Abuja.

The proposed bill sponsored by the lawmakers representing Enugu East/Isi-Uzo Federal Constituency and Bindawa/Mani Federal Constituency of Katsina State, Paul Nnamchi and Ahmed Doro, respectively, on seeks to regulate rent payments, curb arbitrary rent increases and establish mechanisms through which tenants can seek redress when landlords violate prescribed rental rules.

The bill comes amid growing concerns over the cost of accommodation in the FCT, where tenants frequently face demands for one or two years' rent upfront, placing considerable pressure on households already struggling with the cost of living.

One of the proposed measures would prohibit landlords, property managers and estate agents from demanding more than 12 months' rent as a condition for granting or renewing a tenancy.

The bill also seeks to prevent landlords and their agents from circumventing the proposed restriction through compulsory service charges, separate agreements, artificial tenancy renewals or other arrangements designed to compel tenants to pay more than the permitted advance rent.

However, tenants would be allowed to voluntarily pay for a period exceeding 12 months if they initiated the arrangement without coercion, threats, discrimination or retaliation, provided the agreement and payment were documented in writing.

The proposal also provides for written tenancy agreements before or at the commencement of a tenancy. Such agreements would specify the rent payable, payment schedule, duration of the tenancy, refundable deposits, additional charges and the respective rights and obligations of landlords and tenants.

The bill seeks to establish the Federal Capital Territory Rent Regulation and Tenants' Protection Authority to monitor compliance, investigate complaints and facilitate the resolution of landlord-tenant disputes.

The proposed authority would also have the power to order refunds of unlawful rental payments. Where a tenant has paid rent in violation of the proposed law, the authority could direct a refund within 30 days of serving the relevant order.

If enacted, the legislation would provide tenants with a more structured avenue to challenge unlawful rental demands instead of relying solely on negotiations with landlords or pursuing disputes through the courts.

Persistent rent

Daily Trust reports that house rent has remained a huge challenge for residents of the FCT where many people battle with homelessness., with Nigeria's housing deficit currently standing at 17 million, with the likelihood of the figure increasing to 22 million by 2030, according to experts.

The high cost of rent is a factor in the housing deficit in Abuja, which has left many houses in the city unoccupied, with many residents living in slums, or worse, homeless.

These empty houses can be found littering the highbrow areas of the city, priced beyond the reach of average residents, and rotting away in large quantities.

The latest bill follows years of concerns over rising rents in the FCT and calls for stronger government intervention in the rental market.

In October 2025, the House of Representatives adopted a motion urging the Federal Government to work with state governments to regulate rent increases and consider capping annual increases at no more than 20 per cent of existing rent.

The motion, sponsored by Bassey Akiba, highlighted sharp rent increases in areas benefiting from public infrastructure, including roads and other amenities.

Housing advocates have also called for a more comprehensive tenancy framework for Abuja, arguing that existing rules focused on recovering possession of rented premises do not adequately address wider issues such as rent-setting, advance payments and accessible dispute resolution.

A September 2026 policy brief by the Heinrich Böll Stiftung and HipCity Innovation Centre identified the absence of a comprehensive tenancy framework in the FCT as a regulatory gap contributing to excessive advance rent demands, exploitative practices and limited access to affordable dispute resolution.

The proposed legislation therefore represents a further attempt to establish clearer rules governing the relationship between landlords and tenants in the nation's capital.

Harship 'll push rent up in Q4 2026 - HDAN

In another development, rising rental demand, housing affordability challenges, high construction costs, mortgage financing constraints and changing investor preferences are expected to shape activities across the real estate sector, with rents likely to rise in Q4 2026, a report by the Research and Economic Development Unit of the Housing Development Advocacy Network (HDAN) has projected

The report stated that the Nigerian property market will remain active but increasingly selective between October and December 2026, with affordable residential developments, rental housing, serviced plots and income-generating properties expected to attract greater interest than speculative luxury developments.

According to HDAN, the last quarter of 2026 will present both opportunities and challenges for property developers, investors, landlords, tenants and prospective homeowners as the industry responds to prevailing economic realities.

The organisation noted that while Nigeria continues to experience substantial housing demand, the purchasing power of many households remains inadequate to translate this demand into actual homeownership.

HDAN identified seven major developments likely to shape the Nigerian property market during the final three months of 2026.

HDAN predicts that residential rents will remain under upward pressure in major urban centres, particularly Lagos, Abuja, Port Harcourt, Ibadan and other rapidly growing cities.

The continued movement of people into urban areas, rising household formation, limited affordable housing supply and increasing property maintenance costs are expected to sustain demand for rental accommodation.

However, the organisation warned that landlords may face growing resistance from tenants whose incomes have not increased sufficiently to accommodate repeated rent adjustments.

The report projects that more households may relocate from expensive city centres to satellite communities where accommodation is relatively affordable.

HDAN expects demand for one-bedroom and two-bedroom apartments, smaller residential units and moderately priced rental properties to remain particularly strong.

HDAN identifies the cost of construction as one of the most significant factors likely to determine property prices during the final quarter of 2026.

Despite signs of moderation in inflation, developers continue to face the accumulated effects of expensive building materials, energy costs, transportation, labour, infrastructure provision and construction financing.

The organisation noted that a reduction in the rate of inflation does not automatically mean that cement, reinforcement steel, roofing materials and other construction inputs will become cheaper.

HDAN predicts that some developers may respond by reducing building sizes, adopting alternative construction technologies, reviewing architectural designs and implementing phased development strategies.

The Unit further warns that high construction costs could discourage new housing projects, thereby worsening the supply shortage and placing additional pressure on rents.

It calls for stronger government support for local building-material production, research into alternative construction materials and policies that reduce the cost of delivering affordable homes.

The report identifies inadequate access to affordable mortgage financing as one of the greatest obstacles to expanding homeownership in Nigeria.

Although the Central Bank of Nigeria reduced its monetary policy rate to 23 per cent in September 2026, HDAN cautions that this adjustment does not automatically translate into affordable long-term housing loans.

The organisation notes that many Nigerians still lack access to mortgages with repayment terms and interest rates that reflect their actual earning capacity.

HDAN therefore calls for stronger coordination among the Federal Mortgage Bank of Nigeria, Nigeria Mortgage Refinance Company, Ministry of Finance Incorporated, Family Homes Funds Limited, the Ministry of Housing and Urban Development and other relevant financial institutions.

It also advocates expanded mortgage guarantee mechanisms, rent-to-own programmes, housing cooperatives and innovative financing arrangements designed for workers in the informal economy.

Read the original article on Daily Trust.