Mbah to sign bill regulating agency, legal fees within four weeks.

Peter Ndubuisi Mbah, Enugu State Governor, has pledged to sign into law a proposed amendment to the state’s Landlord and Tenant Law aimed at curbing excessive agency commissions and legal fees charged to prospective tenants.

Governor Mbah gave the assurance during a recent town hall meeting, where he outlined his administration’s plans to address housing challenges through legislative reforms and increased housing supply.

The governor said his administration is working with the Enugu State House of Assembly to ensure the passage of the proposed legislation within four weeks, promising to sign it immediately upon transmission to him.

He explained that while the government could effectively regulate agency commissions and legal fees, imposing a ceiling on rents charged by landlords could discourage investment in residential properties, worsen housing shortages and ultimately drive up rental costs.

“One thing that government can regulate effectively is controlling the cost an agent charges as commission, controlling the legal fees. You can clearly make laws to guide that,” Mbah said.

He argued that rent control could have unintended consequences if property owners were discouraged from investing in housing because of restrictions on the amounts they could charge.

“It is extremely difficult to make laws to cap the fee or the rent a landlord charges because once you do that, what you’re going to see is scarcity,” he added.

According to the governor, his administration is pursuing a supply-driven approach to addressing the housing challenge by expanding the city, developing new residential areas and increasing the number of available housing units.

“So what we do as government is to try and push supplies in the market to see that we build new houses to ensure that there are enough homes so that that supply would drive down the rent,” he stated.

Reaffirming his commitment to protecting residents from excessive tenancy-related charges, Mbah said his administration would work closely with the legislature to ensure the proposed amendment was passed without unnecessary delay.

“I’m committing to you that we’re going to work with the House of Assembly to ensure that within the next four weeks we’ll ensure that bill is passed into law, and I’ll be in a hurry to sign it so that we can protect Ndi Enugu,” he said.

The proposed amendment to the Landlord and Tenant Law, Cap. 101, Revised Laws of Enugu State, 2004, was disclosed by Uche Ugwu, Speaker of the House of Assembly.

Ugwu said the executive bill seeks to establish clearer rules for tenancy transactions, regulate estate agents, limit agency and legal fees, and provide a structured framework for the handling and refund of caution fees.

The proposed legislation also aims to reduce disputes between landlords and tenants over property damage through joint inventories and professional valuations where necessary.

Other provisions seek to check arbitrary rent increases and promote transparency in tenancy-related charges.

The renewed legislative effort follows an earlier bill sponsored by Okey Mbah, representing Nkanu East State Constituency, which had passed its first and second readings, with a public hearing also conducted by the House.

While advocating the earlier proposal in March 2025, Okey Mbah expressed concern over the additional financial burden imposed on prospective tenants through agency commissions, legal fees, caution fees and other charges beyond the rent demanded by landlords.

He argued that inadequate regulation had created opportunities for exploitation, with some individuals allegedly posing as property agents to collect money from unsuspecting accommodation seekers without providing the promised services.

The earlier bill proposed limiting agency commissions and legal fees to a maximum of 10 per cent of the rent, prohibiting caution fees and introducing safeguards against irregular and fraudulent evictions.

However, the final provisions of the proposed amendment will depend on the version passed by the House of Assembly and subsequently assented to by the governor.

Ugwu said the legislative initiative aligned with Mbah’s vision of positioning Enugu as a preferred destination for business, investment, tourism and residential living.

The proposed reform comes amid persistent complaints about rising accommodation costs in Enugu, where prospective tenants often face substantial additional charges before securing rented properties.

If passed and signed into law, the amendment could provide a clearer regulatory framework for tenancy transactions, improve accountability among property agents and help protect tenants against excessive charges.

Its effectiveness, however, will depend on the final provisions of the law, the establishment of appropriate enforcement mechanisms and compliance by landlords, estate agents and legal practitioners.