The Complete Breakdown of Nigerian Move-In Costs

A tenant in Lagos signs up for a ₦2,000,000 per year flat. They budget for ₦2,000,000. Then the agent sends an invoice for ₦3,100,000 and suddenly there's a misunderstanding that could have been avoided with clarity up front.

Here's what's actually inside a typical Nigerian move-in invoice.

1. Rent

The biggest line item, and the least ambiguous. Pay period is usually yearly (in Lagos, Abuja, PH) but increasingly monthly or quarterly in newer developments. In Lagos, yearly rent upfront is capped at 12 months for new tenants under the Tenancy Law 2011.

2. Agency fee (also called commission)

Standard 10% of the annual rent, paid to the agent who brokered the deal. Some agents charge 5% in competitive markets; others charge 10% in high-demand areas. This fee is usually one-time at the start of the tenancy.

3. Legal fee

Standard 5–10% of annual rent, paid for drafting the tenancy agreement. This is the single most negotiable item on the list. Many tenants and landlords use templates today, which means the "legal fee" is pure markup. If your agent hands you a pre-filled template, question the 10%.

4. Caution deposit (security deposit)

Usually 10% of annual rent, held against damage or unpaid charges at the end of tenancy. The amount is negotiable and should be returned at move-out minus legitimate deductions (actual damage costs, outstanding bills). In practice, return rates in Nigeria are low — keep receipts for every deduction.

5. Service charge

Covers common area maintenance (security, cleaning, waste, common electricity). Amount varies wildly — can be ₦100,000/year for a small compound or ₦1,000,000/year for a serviced apartment. Ask for a breakdown before paying.

6. Stamp duty

A small percentage of the annual rent, set by FIRS. Required by law but often skipped. If stamp duty is on the invoice, it's legitimate — confirm the current rate. If your agent bundled "documentation fees" on top without specifics, ask what's inside.

Worked example: ₦2M rent in Lekki, Lagos

Here's a realistic move-in invoice for a 2-bedroom flat:

• Rent (1 year): ₦2,000,000
• Agency fee (10%): ₦200,000
• Legal fee (10%): ₦200,000
• Caution deposit (10%): ₦200,000
• Service charge (1 year): ₦300,000
• Stamp duty: as charged by FIRS (small percentage of rent)
• Total upfront: ~₦2.9M (approximate — confirm all rates)

That's roughly 45% more than the rent itself. Build that into your budget from day one.

What's negotiable and what's not

• Rent: Sometimes, especially for longer-term tenants or off-peak seasons
• Agency fee: Rarely; it's the agent's income
• Legal fee: Very negotiable — start at 3–5%
• Caution deposit: Sometimes reducible, but don't negotiate too hard (you want it back later)
• Service charge: Ask for the breakdown; if lines look padded, push back
• Stamp duty: Fixed by law