Abia Assembly’s New Tenancy Law Outlaws Arbitrary Rent Hikes, Caps Agency Fees at 5%

The Abia State House of Assembly has passed the Abia Real Estate, Landlords and Tenants Bill, No. 34 of 2025, introducing sweeping reforms aimed at protecting tenants, regulating landlords and estate agents, and promoting fairness in the state’s housing sector.

The landmark legislation, passed on August 4, 2026, under the leadership of the Speaker, Rt. Hon. Emmanuel Ihuoma Emeruwa, is designed to eliminate exploitation, prevent arbitrary rent increases, and establish a more transparent and accountable framework for real estate transactions across Abia State.

Speaking after the passage of the bill, Speaker Emeruwa described the legislation as a major step toward ensuring affordability, fairness and order in the housing sector.

He noted that the law would strengthen the rights of both landlords and tenants, provide quicker mechanisms for resolving disputes, and guarantee greater security for residents.

According to him, the legislation reflects the Assembly’s commitment to justice and equity following an extensive legislative process involving relevant stakeholders.

Key Highlights of the New Law
Under the new legislation, which awaits the Governor’s assent, the following provisions will apply:

Tenants can challenge excessive rent increases by applying to a competent court for a declaration that the increment is unreasonable.

Courts will determine the fairness of rent increases by considering prevailing rents for similar properties in the area, improvements made by the landlord, and other relevant circumstances.

Judges have the power to reduce excessive rent increases by fixing what they consider a fair and reasonable rent where an increment is found to be unjustifiable.

Tenants retain other legal rights and remedies, even after challenging a rent increase in court.

A new Abia State Real Estate Regulatory Authority will be established to regulate the real estate sector, formulate policies, and promote global best practices in property transactions.

Estate agents must register with the regulatory authority and obtain a Digital Professional Passport. Operating without registration attracts a fine of ₦50,000, imprisonment for up to three months, or both.

Agency fees are capped at five per cent of annual rent. Any agent who charges above the approved limit commits an offence and, upon conviction, faces a ₦100,000 fine in addition to refunding the excess amount collected.

Existing tenants cannot be compelled to pay more than six months’ rent in advance. Likewise, landlords or agents demanding or accepting payments beyond this limit commit an offence punishable by a ₦100,000 fine, up to three months’ imprisonment, or both.

New tenants cannot be required to pay more than one year’s rent upfront. Violators are liable to the same penalty of a ₦100,000 fine, imprisonment for up to three months, or both.

Forceful eviction, intimidation, or wilful damage to rented property is now a criminal offence, punishable by a fine of up to ₦250,000, imprisonment for up to six months, or both.

This  legislation is expected to significantly reshape landlord-tenant relations in Abia State by promoting transparency, protecting tenants from exploitation, and ensuring that property owners and estate agents operate within clearly defined legal boundaries once the bill receives gubernatorial assent.