Agency Fee, Caution Fee & Legal Fee in Nigeria — Everything Explained

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22 May 20265 min readSignalMe
Calculator and Nigerian Naira notes — rental fees explained

When you rent in Nigeria, the advertised price is only part of what you'll pay. Here's a complete breakdown of every charge.

Agency Fee

What: The agent's commission for finding and facilitating the rental.
Rate: 10% of annual rent (sometimes negotiable to 5–7%)
Paid to: The real estate agent

Caution / Security Deposit

What: Refundable deposit against damage or unpaid bills.
Rate: 1 month's rent (sometimes 2)
Refundable: Yes — when you vacate in good condition. Always get this in writing.

Legal Fee (Agreement Fee)

What: Cost of preparing and stamping the tenancy agreement.
Rate: 10% of annual rent
Paid to: The landlord's solicitor

Service Charge

What: Estate maintenance — security, generator, water, waste disposal.
Amount: Varies widely from ₦100,000 to several million per year in premium estates.
When: Usually billed annually or quarterly, separate from rent.

Full example: 2-bedroom in Surulere at ₦900,000/year

2 years rent: ₦1,800,000 · Agency fee: ₦90,000 · Legal fee: ₦90,000 · Caution: ₦75,000 · Day-one total: ₦2,055,000

How to reduce what you pay

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