Service charge in Nigerian rentals: what it covers and when it’s a rip-off

Service charge is the line item in Nigerian rentals that tenants argue about the most, and understand the least. On a ₦1,800,000 Lekki flat you might be quoted ₦200,000 a year in service charge. On an Ikoyi serviced apartment at ₦8,000,000 you might be quoted ₦2,500,000. The spread isn't random, and it isn't always fair. In twelve years of watching landlords invoice tenants, I've seen service charge used to cover genuine estate costs, and I've seen it used as a second rent.

This piece breaks down exactly what service charge is supposed to pay for in Nigeria in 2026, what a fair range looks like by property type, how to ask for a breakdown that actually tells you something, and how to spot the common scams. For the full anatomy of a rental bill see the true cost of renting in Nigeria.

What service charge actually covers

Service charge is the tenant's share of the shared, recurring cost of running the building or estate. In a well-run estate, the facility manager or residents' association publishes an annual budget and the service charge is a simple division of the budget across the units.

The line items you should expect:

• Estate security. Salaries for gate staff (typically 2-4 men on rotation), CCTV maintenance, occasionally a supervisor.
• Borehole electricity and maintenance. The pump runs on mains or generator; the tank needs occasional cleaning; the pipes leak.
• Generator diesel and servicing. In estates with centralised backup power, diesel is the single biggest cost line. At ₦1,300-₦1,500 per litre in early 2026, a 100 KVA generator running 10 hours a day burns roughly ₦350,000-₦450,000 of diesel per month.
• Waste collection. LAWMA or a private contractor, typically ₦3,000-₦8,000 per unit per month in Lagos.
• Compound maintenance. Cleaner salaries, gardening, painting, pest control.
• Common-area lighting. Street lights inside the estate, lobby lights in an apartment block.
• Estate office expenses. Stationery, internet, sometimes a facility manager's fee.
• Amenity costs. Pool chlorination and pumps, gym equipment servicing, lift maintenance contracts (₦200,000-₦600,000 per lift per year).

If your estate charges ₦300,000 per unit per year, roughly 60-70% of that should be diesel and security alone. If someone tells you the service charge is "for general estate maintenance" and can't break it further, that's the first red flag.

Fair service charge ranges by property type

Here's what I see in the Lagos market right now, pulled from listings and estate budgets tenants have forwarded me over the last 18 months.