Legislature

Bill to stop prepaid Yearly Rent scales second reading at the senate

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***As sponsor alleges threats from property owners

The bill that will put an end to prepaid yearly rent in the Federal Capital Territory (FCT) on Tuesday scaled second reading at the senate

This was just as the sponsor of the bill Senator Smart Adeyemi raised alarm that he has been receiving strange calls threatening him to drop the bill.
He said some Landlords have even vowed to ensure the bill is not passed
The proposed legislation is titled, ‘A bill for an Act to regulate the mode of payment of rent on residential apartments, office spaces, etc in the FCT and for other matters connected therewith.’
Senator Adeyemi (APC, Kogi West), said it is aimed at ending the practice whereby landlords demand an upward yearly advance rent payment from tenants.
Adeyemi said the bill sought to replace the current annual advance rent payment with monthly payments in arrears, in order to make life meaningful for workers who are groaning in pains to pay their rents.
Senator Sabi Abdullahi supported the bill and explained that many residents of Abuja “are groaning in pains to pay house rents in advance”.
He said the Senate would be helping poor Nigerians working and residing in Abuja if the bill was signed into law.
He described it as a welfare-oriented programme that would enjoy the support of Abuja workers and residents.
Senators Ibrahim Gobir and Bala Ibn Na’Allah also lent their voices to support the bill, claiming that it would end corruption among the workers and immorality among the young ladies who engage in desperate activities to pay their rents.
The Deputy Senate President, Ovie Omo-Agege, who presided over plenary, described the bill as “popular” owing to the number of Nigerians who have showed interest in it. 

However, Senator Chimaroke Nnamani (Enugu East), a People’s Democratic Party (PDP) Senator and the only lawmaker in the chamber who spoke against the bill, argued the issue of rent payment should be driven by market forces.     

He said the payment of rent should be driven by market forces.

He insisted that the Senate should not dictate the rent payment modalities to the landlords when government was doing nothing to either regulate the cost of land and prices of building materials.

“The issue of rental payment, either in advance or installments is purely economical and should be driven by market forces.

“Such market forces as availability of land, cost of building materials and income.

“If government wants to ameliorate the sufferings of the masses, government can go into housing schemes, mortgage schemes, housing credit facilities, not control the business of private individuals in an emerging African democracy. 

“I, therefore, oppose, and oppose vigorously this bill”, he said. 

The lawmaker, in his lead debate on the general principles, said the bill seeks to regulate the mode of payment of rent on residential apartments, office space, rooms and accommodation in the FCT. 
According to him, the move by the chamber to regulate the payment of rents in the FCT stemmed from the obligation of its constitutional responsibilities, aimed at  impacting the lives of residents. 
“If passed, this Bill will improve the well- being and standard of living of residents and minimize corruption and immorality emanating from the oppressive tenancy system in the Federal Capital Territory. 
“This Bill will make life less stressful and less painful for majority of the down-trodden and low income earners in the Federal Territory”, Adeyemi said.
He explained further that due to global economic recession, life  has become very challenging and almost unbearable for the low income earners despite the huge palliative measures by the Federal Government through the N-POWER traders money. 
He noted that in the FCT, Landlords demand between one to three years advanced rent, a situation which he pointed, “automatically adds a huge burden on the masses, subsequently giving rise to desperation and corruption.”
He lamented that the “tenancy system has continuously impoverished Nigerians who are salaried employees that can only pay rent after haven received their first remuneration.”
“This tenancy system is unafrican, unislamic and indeed unbiblical”, the lawmaker added.
Adeyemi expressed concern that many residents of the FCT are finding it difficult to cope with huge rent payment, adding that, “many houses built within the city center for such purposes are empty.” 
He said that yearly tenancy has continued to breed corruption, moral decadence and huge inequality as low income earners who cannot afford to continually pay their rent.
According to him, some tenants now engage in corrupt practices, immorality, and even criminal acts to meet the pressing need of shelter. 
He underscored the need for Legislation aimed towards justice, fairness, equity and improved standard of living.
He noted that in the FCT, a single one room apartment ranges from one million (N1,000,000) Naira to two million (N2,000,000) Naira within the city.
According to the lawmaker, in the satellite towns such as Kubwa, Nyanya, Kuje, Lugbe, rents are still not affordable for the common man as it ranges from Three hundred and fifty thousand naira (N350,000.00) to Five Hundred thousand naira (N500,000.00).
He stated that the bill, therefore, seeks to reduce advance payment for new tenants to three months and, thereafter, proceed with the monthly payment scheme.
“It also seeks to protect low income earners from any form of oppression by homeowners.
“The bill also seeks to provide a window for legal action for any form of oppression. 
“Importantly, it will also serve as a safety net for Landlords against erring tenants”, he added.
Senators, however, voted overwhelmingly in support of the bill when the Deputy Senate President put the question for it to be read a second time.
The bill was subsequently referred by Omo-Agege to the Committee on Housing and Urban Development for further inputs.  
The Committee was given four weeks to report back to the Senate in plenary. 


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