Addressing the High Cost of House Rent and Agency Fees in the Federal Capital Territory (FCT), Nigeria: The Need for Legislative Intervention

Abstract

The Federal Capital Territory (FCT) is grappling with a severe housing affordability crisis that disproportionately impacts civil servants, artisans, and low- to middle-income earners. Surging demand, driven by high inflation rate, population growth and urbanization, has outstripped the supply of affordable housing, resulting in exorbitant rents, ranging from N1 million for self-contained apartments to N3.5 million for three-bedroom flats, and steep agency fees of 20-25% of annual rent. These costs, coupled with additional charges like caution and maintenance fees, consume a significant portion of incomes, forcing many residents into substandard housing in distant satellite towns. This situation leads to long commutes, reduced productivity, financial strain, and diminished quality of life, exacerbating economic inequality and social challenges like homelessness and informal settlements. The lack of rent control and regulatory oversight enables arbitrary rent increases and exploitative practices, further deepening the crisis. Against this back drop, this brief recommends legislative interventions, including: • National Assembly may wish to enacting a Rent/Agency Control Bill • National Assembly may wish to mandate the Federal Government through the Federal Ministries of Housing and Works to prioritize low-cost housing estates for civil servants and artisans • National Assembly may also wish to create an FCT Housing Authority to oversee rent control, such as arbitrary rent hikes or excessive agency fees and • The national assembly may also mandate the House Committee on Housing and Habitat to conduct periodic oversights on housing policies in FCT. • The legislature may also wish to interface with the executive to see to the high cost of building materials in the country.