How to Budget and Save for Rent in Lagos

 

Whether you’re a fresh graduate hunting for your first apartment or a seasoned professional tired of crazy landlords, one thing is clear: rent in Lagos is no joke. A decent one-bedroom on the Mainland can cost N300,000 – N500,000 per year, while the Island? Don’t even get me started.

But here’s the good news: you can afford your rent without going broke—if you plan smart. This guide will show you exactly how to budget, save, and even negotiate your way into a comfortable home in this expensive city.

Ready? Let’s dive in.

1. Know What You’re Up Against: Lagos Rent Prices (2024)

Before saving, understand the market:

📍 Mainland (Cheaper but Busy)

• Surulere/Yaba: N300,000 – N600,000/year

• Gbagada/Ikeja: N400,000 – N800,000/year

📍 Island (Expensive but Convenient)

• Lekki Phase 1: N800,000 – N2,500,000/year

• Victoria Island/Ikoyi: N1.5M – N5M/year (Yes, really.)

Pro Tip: If you work on the Island but can’t afford rent there, consider Ajah or Sangotedo—cheaper but still accessible.

2. How Much Should You Save for Rent? (The 30% Rule)

Financial experts recommend spending no more than 30% of your income on rent.

• If you earn N200,000/month: Max rent = N60,000/month (N720,000/year)

• If you earn N100,000/month: Max rent = N30,000/month (N360,000/year)

But Lagos doesn’t always play by the rules. If rent eats more than 30% of your income, you must adjust other expenses (or increase earnings—more on that later).

3. The Ultimate Rent-Saving Plan

✅ Step 1: Break It Down (Monthly vs. Yearly Payments)

• Yearly rent = N500,000?

• Monthly savings goal = N41,666

• Weekly savings goal = N10,416

Hack: Open a dedicated savings account (or use a "kolo" – local thrift collector) to avoid spending the money.

✅ Step 2: Cut Unnecessary Expenses

Where can you save extra cash?

• Reduce eating out (Save N15,000/month)

• Use public transport instead of Uber (Save N20,000/month)

• Cancel unused subscriptions (Netflix, DSTV, etc.)

✅ Step 3: Increase Your Income

If rent is still a stretch, consider:

• Freelancing (Upwork, Fiverr)

• Weekend gigs (MC, baking, ride-hailing)

• Selling stuff online (Jumia, Instagram)

Real-Life Example: Tunde saved N400k in 6 months by driving Bolt on weekends.

4. Smart Ways to Reduce Rent Costs

🔹 Roommates = Half the Rent

Splitting a 2-bedroom in Lekki? You could pay N400k instead of N800k.

🔹 Consider "Face-Me-I-Face-You" Apartments

Shared compounds are way cheaper (N150k – N300k/year).

🔹 Negotiate with Landlords

• Pay upfront? Some landlords give discounts for bulk payments.

• Offer to handle minor repairs in exchange for lower rent.

Pro Tip: Avoid "agent fees" by searching for apartments yourself (check PropertyPro, ToLet, or Facebook groups).

5. Avoid These Common Lagos Rent Mistakes

❌ Renting Beyond Your Means

Just because your colleague lives in Lekki doesn’t mean you should. Live where you can afford.

❌ Ignoring Extra Costs

• Caution fees

• Service charge

• Light/water bills
  Always ask about hidden charges before paying!

❌ No Written Agreement

ALWAYS get a receipt or contract. Lagos landlords can be… unpredictable.

Yes, Lagos rent is crazy, but you can beat the system with smart saving, budgeting, and hustling. Start today, stay consistent, and soon, you’ll be handing that rent money over without panic.

How do YOU save for rent in Lagos? Any hacks we missed? Drop your tips in the comments—let’s help each other win!