Respite for Nigerian tenants as House of Reps moves to cap rent increases at 20% nationwide

The House of Representatives has asked the Federal Government to work with states to regulate house rent in the country.

The parliament passed the resolution during plenary on Thursday, following the adoption of a motion sponsored by Bassey Akiba, a lawmaker from Cross River state.

Moving the motion, Akiba said the challenging economic climate is affecting individuals, households, and businesses, especially those in rental accommodation.

The legislator said there is often a “sudden surge in rent” in areas after public infrastructure such as roads, markets, or other amenities are constructed.

He said rent in places in the federal capital territory (FCT) with newly constructed roads has skyrocketed from N800,000 to N2.5 million per annum, placing an unbearable financial burden on tenants.

Akiba said “wanton exploitation” by property owners undermines the government’s intention to improve citizens’ welfare through public infrastructure projects drives Nigerians into hardship, forcing some to resort to crime to meet inflated demands.

The lawmaker said there is urgent need to balance the rights of property owners with the welfare of tenants to ensure fairness, stability, and sustainability in the housing sector.

Following the motion’s adoption, the house urged the federal government to prioritise investing in affordable housing initiatives, ensure citizens’ access to low-cost housing, and reduce pressure on the rental market.

The green chamber also asked ministry of housing and urban development to collaborate with state governments to “enforce rent control measures, ensuring that public infrastructure projects do not lead to exploitative rent hikes, and cap rent increases at no more than 20 percent of the existing rent, irrespective of infrastructure improvements or other factors”.

The house mandated the committee on housing and habitat to ensure compliance and report back within four weeks for further legislative action.

In July, stakeholders in Nigeria’s real estate sector raised the alarm over the high land cost, describing it as a major contributor to the country’s worsening housing deficit.

The developers said government intervention is critical to reducing land costs and making housing affordable for low and middle-income Nigerians.