Reps Propose 20% Nationwide Cap on Rent Increases to Protect Nigerian Tenants

In a move aimed at addressing Nigeria’s growing housing affordability crisis, the House of Representatives has proposed a law to cap annual rent increases at a maximum of 20 percent across the country. The proposal seeks to curb arbitrary and exploitative rent hikes by landlords, which lawmakers say are worsening the economic burden on ordinary citizens.

The initiative followed the adoption of a motion titled “Need to Regulate Arbitrary Rent Increase and Protect Tenants from Exploitation” moved by Hon. Bassey Akiba during Thursday’s plenary session in Abuja.

Akiba, representing Calabar Municipality/Odukpani Federal Constituency, expressed concern that unregulated rent increases have become rampant in several cities, especially in the Federal Capital Territory (FCT), where infrastructural improvements such as new roads and drainage systems have led to sudden rent spikes.

According to him, “In some Abuja neighbourhoods, houses that used to rent for ₦800,000 now go for as high as ₦2.5 million annually. These increases are not only arbitrary but also inconsiderate of the economic realities faced by tenants.”

The lawmaker decried what he described as “wanton exploitation” by property owners, warning that the practice could push already struggling Nigerians into poverty and desperation. He added that the proposed regulation was not to punish landlords but to create a fair balance between property owners and tenants.

House Resolutions and Policy Directions

Following an extensive debate, the House urged the Federal Government to intensify efforts in the provision of affordable housing schemes and low-cost estates nationwide to reduce pressure on the rental market.

Lawmakers also called on the Federal Ministry of Housing and Urban Development to work with state governments to enforce rent control measures, ensuring that rent increases are reasonable and do not exceed 20 percent of the existing rate within a year—regardless of location or infrastructural developments.

The House further mandated its Committee on Housing and Habitat to oversee implementation and report back within four weeks for further legislative action.

According to the motion’s sponsor, the proposed cap would not only stabilize rent prices but also encourage transparency in property valuation and help tenants plan better financially.

Mixed Reactions from Nigerians

The proposal has sparked widespread debate among Nigerians. While many citizens welcomed the move as long overdue, others questioned its practicality given the current state of the economy.

Critics argued that it would be difficult to implement a rent cap in an economy where building materials, transportation, and electricity costs have skyrocketed. “They’ve done nothing to control the price of cement or diesel, yet they want to tell landlords how much to charge,” one online commentator wrote.

Others defended the lawmakers, describing the motion as a step in the right direction. “When rent jumps from ₦800,000 to ₦2.5 million overnight, it becomes impossible for the average Nigerian to survive. This bill is necessary,” said another respondent.

Some landlords, however, expressed fears that the proposed cap could backfire, warning that property owners might simply evict existing tenants under the guise of renovation and re-let at higher prices to new tenants willing to pay.

The Bigger Picture

Nigeria continues to face a severe housing deficit, estimated at over 28 million units, according to data from the Federal Mortgage Bank of Nigeria. Analysts say that without massive government-backed housing investment and stronger rent regulation frameworks, tenants will remain at the mercy of market forces.

If passed into law, the proposed 20% rent cap could mark a significant shift in Nigeria’s housing policy—signaling the government’s intention to prioritize tenant protection and affordable living in a rapidly urbanizing nation.