By Pat Onukwuli
The essence of legislation lies not in the volume of its applause but in the depth of its wisdom. In Nigeria’s evolving housing landscape, the Enugu State House of Assembly’s proposed amendment to the Landlords and Tenants Act has reignited a necessary conversation, one that goes beyond rent ceilings and tenancy deposits into the heart of governance, economic foresight, and institutional integrity.
A public hearing on the proposed bill was held on 26 March 2025. The event brought together a diverse range of stakeholders, including clergy, students, youth groups, professional bodies such as the Nigerian Institution of Estate Surveyors and Valuers (NIESV) and the Nigerian Bar Association, market associations, and members of the public. It was a commendable display of civic engagement.
However, beyond the commendable optics, the hearing revealed a disquieting truth. During the hearing, the Honourable Member, who represented the Enugu House of Assembly Speaker, acknowledged learning about the statutory role of Estate Surveyors in estate agency. This revelation highlights a significant gap in legislative consultation and technical preparedness, particularly when proposing amendments with far-reaching implications for the real estate market.
This revelation also lays bare a worrying disconnect between the lawmakers and the subject they seek to enact. When members of a legislative house are just discovering foundational roles enshrined in long-standing federal statutes, it becomes clear that they are navigating complex terrain without a map. Laws, especially those with wide-ranging economic and social consequences, demand more than good intentions; they require informed judgment grounded in legal precedent, economic reality, and stakeholder input. The current approach reflects a troubling lack of due diligence, which could cost Enugu legal credibility, investor confidence, and public trust.
This Bill, a Private Members Bill introduced by Honourable Okey Madu, is cloaked in populist appeal. It seeks to limit agency fees, eliminate caution deposits, and vest regulatory powers in the Enugu State Housing Development Corporation. At face value, these propositions may seem tenant-friendly and well-intentioned. Nevertheless, the deeper one probes, the more evident the Bill’s structural and philosophical defects become.
A significant flaw in the Bill is its conflict with the Federal Estate Surveyors and Valuers (Registration, etc.) Act of 1975, which established ESVARBON as Nigeria’s regulatory authority for estate agency practice. The Enugu Bill’s attempt to override this federal law is unconstitutional and risks being nullified in court, wasting resources and eroding public confidence in the legislative process.
Legislation must be evaluated based on its intent and probable local or national outcomes. Real estate investment thrives on regulatory certainty, market fairness, and transparent dispute resolution. The proposed tenancy Bill sends the wrong signal to investors with its restrictive controls and arbitrary fee caps.
By removing caution deposits and placing excessive controls on agency practice, the Bill threatens to erode the confidence of property owners and developers. Landlords who can no longer rely on caution deposits to safeguard against property damage or unpaid rent may withdraw from the rental market altogether or significantly hike rents to hedge against risk. Both outcomes would worsen the housing affordability crisis that the Bill purports to solve.
The Bill undermines Enugu’s recent strides under Governor Peter Mba in creating an investor-friendly environment. Regulatory clarity is a cornerstone of economic growth; uncertainty is its enemy.
Of particular concern is the plan to vest regulatory powers in the Enugu State Housing Development Corporation, a body with a commercial stake in the very market it is tasked with regulating. This is a textbook case of regulatory capture, where the referee is also a player. The result would not be fair competition but institutional bias.
The Housing Corporation, with its existing involvement in luxury housing developments and controversial land transactions, cannot objectively regulate estate agents operating in the private sector. If anything, the Corporation should refocus on its original mandate: expanding access to affordable housing for low- and middle-income households, rather than adjudicating market disputes.
Another critical omission in the proposed Bill is the absence of any enhanced role for the judiciary. Instead of investing in tenancy tribunals, small claims mechanisms, or alternative dispute resolution platforms, the Bill seeks to solve tenancy challenges through overregulation.
This is both shortsighted and inefficient. Strengthening existing legal frameworks and enhancing access to justice for tenants and landlords would benefit the state. Durable housing reform must involve the judiciary, not just administrative agencies.
The Enugu State House of Assembly can demonstrate legislative maturity by revisiting this Bill. This is not a call to abandon reform; it is a call to do it right. That requires robust consultation with experts, alignment with federal statutes, and a sober economic impact analysis.
Lawmakers must resist the urge to legislate based solely on popular sentiment. Populist laws may win applause today, but flawed laws will sow confusion and economic damage tomorrow.
Indeed, there is an Igbo proverb: onye ajụrụ, a jụ ya; he who fails to ask questions will eventually be questioned. The Assembly must ask itself: Is this Bill legally sound? Economically viable? Fair to all stakeholders? If the answer to any of these is in doubt, then the responsible course is to pause, reflect, and revise.
Lawmaking must be more than a quest for applause; it must be an act of moral clarity, legal diligence, and economic foresight. Currently, the proposed tenancy Bill fails on all three counts.
Enugu cannot afford to legislate in the dark. It must return to the drawing board, not out of fear but a sense of responsibility. In doing so, it can still pass a law that genuinely protects tenants, empowers landlords, attracts investment, and aligns with national development goals.That is what good law should look like and what Enugu deserves.
• Dr. Onukwuli is a real estate expert and public affairs commentator. He writes from Bolton, UK.
Email: [email protected]