Rent now, pay later in Nigeria: how it works and what it costs
With rent now, pay later, a provider pays your landlord the year’s rent upfront and you repay it in monthly instalments, usually over 6 to 12 months. You pay for this through fees and interest. To compare plans, look at the total you will repay and the APR, and check whether interest is charged on what you still owe or on the whole amount.
How it works
- You choose a home, or keep the one you are in.
- The provider checks who you are and that you can afford the monthly payment.
- The provider pays your landlord the full rent for the year.
- You repay the provider monthly, usually by direct debit from your salary account.
Your landlord is paid in full, as they expect. You spread the cost over the months you are paid.
What it costs
Most plans charge some combination of:
- An upfront fee, often a percentage of the rent, paid when the plan is approved.
- Interest, quoted as a monthly or yearly rate.
- Late fees if a payment is missed.
The APR (annual percentage rate) brings the fees and interest together into one yearly figure, so plans can be compared fairly. Ask for it, and for the total you will repay, before you sign.
Reducing balance vs flat rate
This is the difference that matters most. On a reducing balance, interest is charged only on what you still owe, so it falls each month as you repay. On a flat rate, interest is charged on the full amount every month, even near the end of the plan when you owe very little.
| Reducing balance | Flat rate | |
|---|---|---|
| Monthly payment | ₦241,109 | ₦272,000 |
| Total interest | ₦493,308 | ₦864,000 |
| Total repaid | ₦2,893,308 | ₦3,264,000 |
The same "3% a month" costs ₦370,692 more on a flat rate. Always ask which one a plan uses.
What to check before you sign
- The lender is on the FCCPC’s list of approved digital lenders.
- Every fee is written down, with the APR and the total you will repay.
- Interest is on the reducing balance.
- Paying off early is free, and you stop paying interest when you do.
- You know what happens if a payment fails: retries, late fees and whether it is reported to credit bureaus.
- The provider pays your landlord directly, and the landlord and the home have been verified.
What Vaqnt charges
A one-off origination fee of 3% or less of the yearly rent at approval, then interest of 3% or less a month on the reducing balance, set by your credit check. That is an APR of about 36%–47%, depending on your rate and plan length. Paying off early is free. If a payment fails we retry over 5 days and call you; after 7 days a late fee of 2% of the missed amount applies, and that is the only penalty. Full details are on the pricing page.
| Yearly rent | 6 months | 9 months | 12 months |
|---|---|---|---|
| ₦1,200,000 | ₦221,517 | ₦154,121 | ₦120,555 |
| ₦1,800,000 | ₦332,276 | ₦231,181 | ₦180,832 |
| ₦2,400,000 | ₦443,034 | ₦308,241 | ₦241,109 |
| ₦3,000,000 | ₦553,793 | ₦385,302 | ₦301,386 |
Common questions
What is rent now, pay later?
A provider pays your landlord the year’s rent upfront and you repay it in monthly instalments, usually over 6 to 12 months, with fees and interest.
Is rent now, pay later a loan?
Yes. It is consumer credit, so in Nigeria the lender needs approval from the Federal Competition and Consumer Protection Commission (FCCPC).
What is the difference between a reducing balance and a flat rate?
On a reducing balance, interest is charged only on what you still owe, so it falls as you repay. On a flat rate, interest is charged on the full amount every month, which costs much more.
What is the APR on a Vaqnt rent plan?
About 36%–47%, depending on your rate and plan length. That includes the origination fee of 3% or less and interest of 3% or less a month on the reducing balance.
Can I repay a rent plan early?
With Vaqnt, yes, for free. You won’t pay interest for the months you don’t use. The origination fee isn’t refunded.