How to pay rent monthly in Nigeria

Why rent is paid a year at a time

Yearly rent gives landlords certainty: one payment, no chasing. For tenants paid monthly, it means finding twelve months of salary at once, plus the caution fee, service charge and any agency fees. We look at where the habit comes from in Why rent comes a year at a time.

Option 1: agree monthly payments with your landlord

Some landlords will accept monthly or quarterly rent, especially from a tenant who has already lived there and paid on time. It costs nothing extra, but most landlords say no, and it depends entirely on trust between you.

• Ask before renewal, not when rent is due.
• Offer a standing order or direct debit so payments are automatic.
• Put the agreement in writing, with the amount, the date each month and what happens if a payment is late.

Option 2: use a rent plan

A rent plan pays your landlord the full year upfront, and you repay the provider monthly. Your landlord gets the certainty of a yearly payment and you pay from your salary. It is a credit product, so it costs more than paying cash, and you should know the full cost before you sign.

Before you use any rent plan, check:

• That the lender is on the FCCPC’s list of approved digital lenders. Rent plans are consumer credit, and lenders need FCCPC approval.
• The total cost: every fee, the interest rate, the APR and the total you will repay, in writing before you sign.
• Whether interest is charged on the reducing balance (what you still owe) or a flat rate on the whole amount. A flat rate costs much more. See Rent now, pay later in Nigeria.
• What happens if you pay early or miss a payment.

Option 3: save monthly before your rent is due

If your current rent is paid, saving a twelfth of next year’s rent each month means renewal is covered when it comes, with no interest to pay. It takes discipline and only works if you start early. A locked savings plan, like the Vaqnt rent vault, makes it harder to dip into.

How paying monthly works with Vaqnt

1. Find a verified home in the app, or invite your current landlord so you can stay where you are.
2. Apply with your BVN, NIN and proof of income. We check the monthly payment is no more than 40% of your take-home pay.
3. Sign the lease in the app. Vaqnt pays your landlord the full year upfront.
4. Repay monthly over 6, 9 or 12 months by automatic debit from your bank account.

You pay a one-off origination fee of 3% or less of the yearly rent at approval, then interest of 3% or less a month on what you still owe. On ₦2,400,000 over 12 months at 3%, that is ₦72,000 at approval and then ₦241,109 a month. Every figure is on our pricing page.

Common questions