Enugu Assembly Moves to Regulate Rent, Scrap Caution Fees in New Bill

The Enugu State House of Assembly has introduced a bill seeking to regulate rent and address arbitrary housing charges. The Landlord and Tenant (Amendment) Bill, 2025, sponsored by Hon. Anthony Okey Mbah, was read for the first time on Tuesday.

The proposed law aims to curb excessive fees by middlemen, eliminate unjustified charges, and establish more precise tenancy regulations in the state.

Key Provisions of the Bill include:

• Mandatory Certification for Agents

Anyone acting as a house agent or property manager in Enugu must obtain a permit from the Enugu State Housing Development Corporation. The permit must be renewed annually, with fees prescribed by the corporation. The managing director of the corporation will set regulations guiding agents’ operations.

• Cap on Agency and Legal Fees

The bill sets a maximum charge of 10 per cent of the rent for agency fees. Agents cannot demand anything above this amount. Legal fees for tenancy agreements must not exceed 10 per cent of the rent and must be paid only to qualified legal practitioners.

• Abolition of Caution Fees

Landlords and agents are prohibited from collecting caution fees from tenants.

• Regulated Notice Periods

The bill seeks to standardise eviction and rent increase notice duration, ensuring tenants receive a fair warning.

• Government Oversight on Housing Regulations

A designated government ministry or agency will have the authority to introduce additional regulations on housing matters.

Anyone violating the bill’s provisions would face a fine of ₦500,000, six months imprisonment, or both. A statement from the House noted: “This bill, which will in due course be introduced in the Enugu State House of Assembly for enactment, is published so that any person who has any comments on all or any of the provisions may submit the same to the Clerk of the House.”

RISING RENT COSTS AND INCREASING HARDSHIP

The bill’s introduction follows years of complaints over the housing crisis in Enugu. In July 2024, the Civil Liberties Organisation (CLO) petitioned the assembly to intervene in rising rent costs. In a letter to Speaker Uche Ugwu, the CLO blamed house agents and legal practitioners for inflating rent prices with multiple fees.

The twin evils of lawyer fees and agency fees, in addition to caution fees, management fees, and legal fees, are making housing unaffordable for many,” the CLO stated.

Many Enugu residents have struggled with increasing rents. A two-bedroom flat in Achara Layout, which previously cost between ₦350,000 and ₦400,000, now goes for as high as ₦800,000. In New Haven, a three-bedroom flat that once rented for ₦500,000 now costs up to ₦1.2 million. A landlord, Ignatius Okeke, linked the rent increases to Nigeria’s economic difficulties: “Landlords are also struggling, and sometimes rent is their only means of survival.”

The issue of rising rent extends beyond Enugu. In Lagos, residents have expressed frustration over skyrocketing housing costs. Reports seen on social media show that a mini-flat in Akowonjo now costs ₦1.6 million annually. A two-bedroom apartment in areas like Gbagada and Lekki costs around ₦4 million per year.

Commenting on the pricing crisis, journalist David Hundeyin lamented: “₦150,000 per month is considered a valid full-time wage in Lagos, but you can’t rent a studio flat for less than ₦1 million. What is going on?”

As rent continues to soar nationwide, many Nigerians are struggling to afford basic housing, further worsening the country’s economic hardship.

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