Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
A quiet revolution in Nigeria's housing sector unfolded on Tuesday, August 11, 2026, as the Ebonyi State House of Assembly passed a landmark executive bill that caps property agency fees at a maximum of two per cent of the gross transaction value, standardises residential rent, and regulates the scrap metal trade across the state. The law, formally cited as the Ebonyi State Sale of Scraps, House Rent, and Agent Fees Regulation Law 2026, took immediate effect upon passage, delivering a decisive blow to exploitative practices that have long burdened tenants and homeowners in the South-East state.
Presided over by Speaker Moses Odunwa during Tuesday's plenary at the Assembly Complex on Nkaliki Road, Abakaliki, the legislation establishes strict regulatory frameworks to curb public property vandalism, check environmental degradation, and eliminate what lawmakers described as "arbitrary rent hikes by speculative landlords". The bill, which passed its third reading following a clause-by-clause consideration in the Committee of the Whole, represents one of the most comprehensive housing reforms undertaken by any state government in Nigeria this year.
The most significant provision of the new law is the cap on agency fees. Under the legislation, both professional and non-professional estate agents are now prohibited from collecting fees exceeding two per cent of the gross transaction value for real estate transactions. This represents a dramatic reduction from the prevailing practice in many parts of Nigeria, where agency fees have routinely ranged between ten and twenty per cent of annual rent, often pushing tenants into financial distress. The law also mandates that all estate agents operating within the state capital must register with the Ministry of the Capital City to ensure transparency and accountability.
On housing, the legislation empowers Governor Francis Nwifuru to prescribe standard rent tariffs for applicable housing categories, and landlords are legally barred from demanding rates exceeding the prescribed caps. Landlords who obtain possession orders through fraud, misrepresentation, or concealment of facts now face up to two years' imprisonment. This provision is particularly significant, as it addresses long-standing grievances over the abuse of court processes by some landlords seeking to evict tenants through questionable means.
The law also tackles the growing menace of scrap metal theft, which has become a major problem across Ebonyi State. Unlicensed buying, selling, possession, transportation, or disposal of metal and electrical scraps is now strictly prohibited. Violators face up to two years' imprisonment, a fine not exceeding ₦500,000, or both. Speaker Moses Odunwa, speaking shortly after the bill passed, remarked: "Scrap dealers have shown a brazen lack of restraint, causing widespread havoc to critical public infrastructure and private property. This law restores sanity to our property market and prioritises overall public safety".
The bill was presented to the House by Leader of the House Kingsley Ikoro, who urged his colleagues to give the measure swift passage, emphasising its role in safeguarding public infrastructure and protecting vulnerable tenants. Several lawmakers voiced strong support during deliberations, including Victor Nwoke (Abakaliki North), Nwodo Nwodo (Ebonyi North West), Oluchukwu Ukie Ezeali (Afikpo East), Friday Ogbuewu (Ezza South), and Celestine Ogba (Onicha East). They described the legislation as a timely intervention against the surge in municipal scrap theft and arbitrary rent hikes by speculative landlords.
The passage of the law follows months of advocacy and public outcry over the rising cost of housing in Ebonyi State, particularly in the capital, Abakaliki. In July 2026, the Ebonyi State Executive Council, chaired by Governor Francis Nwifuru, approved the transmission of two executive bills to the House of Assembly seeking to regulate house rents and fees charged by estate agents in the state. The bills proposed that agents would not be allowed to collect fees exceeding two per cent of the total rent paid by tenants. The swift passage of the legislation signals the government's determination to address the housing crisis and protect residents from exploitation.
The law also has broader implications for Nigeria's housing sector, where similar calls for regulation have been made in other states. Anambra State has announced plans to introduce a Rent and Tenancy Law to regulate rents and agent fees. In July 2026, human rights lawyer Deji Adeyanju condemned the surge in rents across the country and demanded tenant protection laws, detailing a pattern of tenants being forced to pay two to three years of rent upfront alongside agency fees running as high as 20 per cent. Ebonyi's new law could serve as a model for other states seeking to address similar challenges.
In other legislative business during the same session, the Assembly adopted the Auditor-General's Report on the Consolidated Financial Statements of the Ebonyi State Government for the fiscal year ended December 31, 2025, confirming its alignment with standard accounting principles. The House also screened and confirmed nine nominees presented by Governor Nwifuru to serve as Coordinator and Management Committee members for the Amasiri Development Centre in Afikpo Local Government Area.
For the residents of Ebonyi State, the new law offers a measure of relief in an increasingly difficult economic environment. The cap on agency fees and the regulation of rent tariffs will provide tenants with greater protection against exploitation, while the crackdown on unlicensed scrap dealers will help curb vandalism and environmental degradation. As Speaker Odunwa noted, the law restores sanity to the property market and prioritises public safety. Whether other states will follow Ebonyi's lead remains to be seen, but for now, the people of Ebonyi have reason to hope that their housing burden will finally begin to ease.
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