Enugu Assembly Moves to Abolish Caution Fees, Regulate Tenancy Charges

The Enugu State House of Assembly has introduced a bill aimed at abolishing caution fees and regulating agency and legal charges imposed on tenants. The bill, sponsored by Okey Mbah, who represents Nkanu East State Constituency, passed its first reading during Tuesday’s plenary session.

The proposed legislation comes in response to growing complaints from residents about the exploitation of tenants by landlords. If enacted, the law will impose a fine of N500,000 or a six-month prison sentence—or both—on offenders. It also seeks to cap legal and agent fees at 10 percent of the rental cost.

According to the bill, agent fees for securing accommodation in the state must not exceed 10 percent of the rent. Additionally, tenants will not be required to pay any extra premium, except for legal fees charged by a qualified practitioner to draft lease agreements, which must also remain within the 10 percent limit.

The bill also seeks to protect tenants from forced, irregular, or fraudulent evictions by establishing a legally defined duration for eviction notices. Furthermore, it mandates proper certification for individuals intending to operate as land agents or property managers. Under the proposed law, the Enugu State Housing Development Corporation will oversee the issuance and annual renewal of permits for agents.

Speaking after the plenary session, Mbah emphasized that the bill aligns with the interests of Enugu residents and expressed confidence that it would gain majority support in the House.