Ebonyi Assembly Passes New Law to Regulate Scrap Trade, House Rents and Estate Agent Fees

Ebonyi Assembly Passes New Law to Regulate Scrap Trade, House Rents and Estate Agent Fees

Ebonyi State House of Assembly has passed a new law regulating scrap trade, house rents and estate agent fees, with penalties for offenders and a 2% cap on agents’ fees.

Ebonyi Assembly Passes Bill Regulating Scrap Trade, House Rents and Agent Fees

The Ebonyi State House of Assembly has passed a landmark bill seeking to regulate scrap trading, house rents and estate agency fees across the state.

The legislation, titled “The Ebonyi State Sale of Scraps, House Rent and Agent Fees Regulation Law, 2026,” was passed during plenary presided over by the Speaker of the House, Moses Odunwa.

The proposed law is expected to take effect immediately if assented to by Governor Francis Nwifuru.

The legislation is aimed at addressing several concerns affecting residents, including the alleged theft and vandalism of critical infrastructure, environmental degradation, excessive house rents and high charges imposed by estate agents.

New Rules for Scrap Dealers in Ebonyi

One of the major provisions of the legislation focuses on the buying, selling, possession, transportation and disposal of metal and electrical scraps.

Under the proposed law, individuals or businesses would not be permitted to purchase, sell, possess for sale, transport or dispose of metal or electrical scraps unless they are licensed dealers operating in accordance with regulations established under the law.

The provision is designed to make it more difficult for stolen metals and electrical components to enter the scrap market.

The Assembly said the measure would help tackle vandalism and the destruction of public and private infrastructure.

Anyone found violating the scrap-related provisions could face up to two years in prison or a fine of up to N500,000.

The regulation is particularly significant because scrap materials can sometimes include components removed from public infrastructure, electrical installations and other critical assets.

Ebonyi Moves to Control House Rents

The new legislation also introduces provisions aimed at bringing greater structure to the rental housing market in Ebonyi State.

From the commencement of the law, landlords would be required to comply with standard rents prescribed by the governor for applicable categories of accommodation.

The measure is intended to address concerns over arbitrary increases in rents and provide greater predictability for tenants.

However, the practical impact of the rent provisions will depend on the standard rents and categories of accommodation eventually prescribed under the law.

Estate Agents' Fees Capped at 2 Percent

Another major provision of the legislation concerns estate agents and property transactions.

The law limits agents’ fees to not more than two per cent of the gross sum of a property transaction.

The provision is intended to reduce excessive charges and protect people involved in buying, selling or renting property from exploitative practices.

The legislation also requires estate agents operating in the state capital to register with the Ministry of Capital City.

Registration is expected to improve transparency, accountability and professionalism within the property sector.

Landlords Face Penalties for Fraudulent Practices

The legislation also addresses fraudulent practices involving landlords.

It provides that landlords who obtain possession of accommodation through fraud, misrepresentation or concealment of material facts could commit an offence punishable by up to two years’ imprisonment.

The provision is designed to encourage greater transparency in landlord-tenant relationships and discourage deceptive practices during property transactions.

Why the Ebonyi Assembly Passed the Law

Presenting the bill, the House Leader, Kingsley Ikoro, said the legislation was necessary to tackle vandalism, environmental degradation and exploitation in the housing sector.

He described the legislation as important to the people of Ebonyi, particularly because of its potential to address the destruction of critical assets and excessive charges in property transactions.

Other lawmakers also supported the measure.

Members including Victor Nwoke, Aloysius Nwodo, Oluchukwu Ezeali, Friday Ogbuewu and Celestine Ogba described the legislation as timely.

They said stronger regulation was needed to address scrap theft and arbitrary rent increases.

Speaker Warns Against Scrap-Related Vandalism

Speaker Moses Odunwa also expressed concern about the activities of some scrap dealers.

He noted that scrap-related activities had contributed to problems in society and suggested that effective implementation of the legislation could help improve public safety and bring greater order to property transactions.

The bill was considered clause by clause by the Committee of the Whole.

During the consideration, lawmakers corrected identified grammatical errors before unanimously passing the legislation.

The bill will now require the governor's assent before it becomes operative law.

What the New Law Could Mean for Residents

If signed into law, the legislation could have a direct impact on several groups across Ebonyi State.

For tenants: The standard-rent provisions could provide greater clarity on applicable rents and potentially reduce arbitrary increases.

For landlords: Property owners would be expected to comply with prescribed rent standards and avoid fraudulent representations.

For estate agents: Agents would have to observe the two-per-cent fee limit and, where applicable, register with the Ministry of Capital City.

For scrap dealers: Only licensed dealers operating within the requirements of the law would be permitted to engage in regulated scrap activities.

For the wider public: The government expects the law to help reduce vandalism, protect infrastructure and promote more transparent property transactions.

Ebonyi Assembly Also Approves Auditor-General's Report

The House also adopted the report of the state Auditor-General on the consolidated financial statements of the Ebonyi Government for the year ended December 31, 2025.

According to the Assembly, the financial statements conformed with accepted accounting principles.

The development came as lawmakers considered other matters relating to governance and public administration in the state.

Nine Amasiri Development Centre Nominees Confirmed

The lawmakers also screened and confirmed nine nominees appointed by Governor Francis Nwifuru as coordinator and members of the management committee of the Amasiri Development Centre in Afikpo Local Government Area.

The screening followed the reinstatement of the development centre after it had previously been disbanded and delisted by the Ebonyi State Government.

The confirmation represents another step toward restoring the administrative structure of the development centre.

What Happens Next?

The most immediate step is for the bill to be presented to Governor Francis Nwifuru for consideration and possible assent.

If the governor assents to it, the law will commence as provided and the relevant government agencies will be responsible for implementing its provisions.

The effectiveness of the legislation will ultimately depend on enforcement, registration procedures, monitoring of scrap dealers, implementation of standard rents and compliance by landlords and estate agents.

The Ebonyi State House of Assembly has introduced a broad regulatory framework covering three important areas: scrap trading, residential rents and estate agency fees.

The legislation seeks to tackle vandalism and environmental concerns while also addressing complaints about excessive property-related charges.

With estate agents’ fees proposed to be capped at two per cent and scrap trading restricted to licensed dealers, the law could significantly change how certain commercial and property transactions are conducted in Ebonyi State if it receives the governor’s assent.

Residents, landlords, estate agents and scrap dealers will therefore be watching closely as the legislation moves toward implementation.

FAQ....

What is the new Ebonyi State law about?

It seeks to regulate scrap trading, house rents and estate agent fees in Ebonyi State.

How much can estate agents charge under the proposed law?

The legislation limits agents’ fees to not more than two per cent of the gross sum of a property transaction.

What is the penalty for violating the scrap trade provisions?

Offenders could face up to two years’ imprisonment or a fine of up to N500,000.

Will landlords be allowed to set any rent they want?

The law provides for standard rents prescribed by the governor for applicable categories of accommodation.

Do estate agents need to register?

Yes. The legislation requires estate agents operating in the state capital to register with the Ministry of Capital City.

Has the law taken effect?

The Assembly has passed the legislation, but it is expected to commence upon assent by Governor Francis Nwifuru, according to the provisions stated in the bill.

Why is Ebonyi regulating scrap dealers?

The legislation is intended to help combat vandalism, particularly the theft and disposal of metal and electrical components, while also addressing environmental concerns.

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