House of reps moves to cap rent increases at 20% nationwide

The House of Representatives has asked the federalgovernment to work with states to regulate house rent in the country. The parliament passed the resolution during plenary onThursday, following the adoption of a motion sponsored by Bassey Akiba, alawmaker from Cross River state. Moving the motion, Akiba said the challenging economicclimate is affecting individuals, households, and businesses, especially thosein 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, is constructed. He said rent in places in the federal capital territory(FCT) with newly constructed roads has skyrocketed from N800,000 to N2.5million per annum, placing an unbearable financial burden on tenants. Akiba said “wanton exploitation” by property ownersundermines the government’s intention to improve citizens’ welfare throughpublic infrastructure projects, drives Nigerians into hardship, forcing some toresort to crime to meet inflated demands. The lawmaker said there is an urgent need to balance the rightsof 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 federalgovernment to prioritise investing in affordable housing initiatives, ensurecitizens’ access to low-cost housing, and reduce pressure on the rental market. The green chamber also asked the Ministry of Housing and Urban Development to collaborate with state governments to “enforce rent controlmeasures, ensuring that public infrastructure projects do not lead toexploitative rent hikes, and cap rent increases at no more than 20 percent ofthe existing rent, irrespective of infrastructure improvements or otherfactors”. The house mandated the committee on housing and habitat toensure compliance and report back within four weeks for further legislativeaction. In July, stakeholders in Nigeria’s real estate sector raisedthe alarm over the high land cost, describing it as a major contributor to thecountry’s worsening housing deficit. The developers said government intervention is critical toreducing land costs and making housing affordable for low and middle-incomeNigerians.

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