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ENUGU GOVERNOR MOVES TO REFORM TENANCY LAW, REGULATE AGENCY FEES AND CURB ARBITRARY RENT INCREASES


By Michael Obinna Ochili, Esq. | Legal Diary News

The Executive Governor of Enugu State, Dr. Peter Ndubuisi Mbah, has forwarded an Executive Bill to the Enugu State House of Assembly seeking to amend the Landlord and Tenant Law, Cap. 101, Revised Laws of Enugu State, 2004, in a move aimed at strengthening tenancy regulations, protecting tenants and promoting transparency in the state's housing sector.

The development was disclosed by the Speaker of the Enugu State House of Assembly, Rt. Hon. Uche Ugwu, in a statement published on his official Facebook page.

According to the Speaker, the proposed legislation seeks to address longstanding challenges associated with landlord-tenant relationships, particularly excessive agency and legal fees, arbitrary rent increases, disputes over caution deposits and the activities of unregulated property agents.

He disclosed that a similar bill sponsored by Hon. Anthony Okey Mbah, Member representing Nkanu East State Constituency, had already passed first and second readings and undergone a public hearing before the State House of Assembly.

The Speaker explained that the ongoing legislative process would ensure that the relevant provisions are carefully examined and harmonised to produce a comprehensive legal framework capable of balancing the interests of landlords, tenants, estate agents and property investors.

PROPOSED REFORMS TO STRENGTHEN TENANCY ADMINISTRATION

The proposed amendment is expected to introduce measures aimed at making tenancy-related charges more transparent, predictable and affordable.

One of its major objectives is to regulate and limit agency and legal fees imposed on prospective tenants, thereby addressing concerns over excessive financial demands during property transactions.

The legislation also seeks to establish a formal regulatory framework for estate agents, ensuring greater professionalism, accountability and transparency in the real estate sector.

Another significant aspect of the proposed reform is the introduction of structured mechanisms for handling caution deposits and refunds, which have frequently generated disagreements between landlords and tenants.

To minimise disputes over alleged property damage, the proposed law is expected to encourage joint property inventories and professional valuations where necessary, ensuring that assessments are conducted fairly.

Importantly, the amendment seeks to curb arbitrary rent increases, while maintaining a conducive environment for property owners and investors.

BALANCING TENANTS' PROTECTION WITH INVESTMENT OPPORTUNITIES

The proposed legislation reflects efforts to strike a balance between protecting tenants from exploitative practices and safeguarding the legitimate interests of landlords and investors.

A transparent and predictable tenancy framework could help reduce avoidable litigation, strengthen confidence in property transactions and encourage further investment in residential and commercial housing.

From a legal perspective, the amendment could also provide clearer statutory guidance on the rights and obligations of parties to tenancy agreements, particularly concerning rent adjustments, agency charges, caution deposits and property maintenance.

However, the effectiveness of the proposed reforms will depend on the final provisions adopted by the House of Assembly and the mechanisms established for their implementation and enforcement.

ENUGU'S VISION FOR ECONOMIC DEVELOPMENT

The Speaker expressed optimism that the proposed amendment, when finalised, would contribute to a more organised, transparent and investor-friendly housing sector.

He further linked the legislative initiative to Governor Peter Mbah's broader development agenda of positioning Enugu State as a preferred destination for business, investment, tourism and living.

The proposed reform represents a significant legislative effort to modernise tenancy administration in Enugu State and address emerging challenges in the property market.

If successfully enacted and implemented, the amended law could strengthen tenants' protection, promote accountability among property agents, reduce tenancy-related disputes and enhance confidence in the state's real estate sector.

Source: Statement attributed to the Speaker of the Enugu State House of Assembly, Rt. Hon. Uche Ugwu, on his Facebook page.

Legal Diary News | October 26, 2026
Reporter: Michael Obinna Ochili, Esq.

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