House Of Reps Seeks To Limit Rent Increases To 20% Nationwide

The house of representatives want the federal government to team up with states to control how much landlords can charge for rent.

On Thursday, October 23, the House passed the resolution after Cross River lawmaker Bassey Akiba brought it forward.

Akiba argued that the struggling economy is putting a strain on everyone, especially renters.

He pointed out a specific problem when the government builds new roads or improves an area, landlords often dramatically increase the rent.

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.

KanyiDaily recalls that the Lagos State Government recently announced plans to replace the current yearly rent system with more flexible monthly or quarterly payment options.