Ask ten Nigerian realtors how much they earn and you will get ten different numbers. That is because real estate agent commission in Nigeria depends on the deal type, the agreement, the city and how many people share the fee.
This guide is for new and aspiring realtors, agents working under firms, and anyone deciding whether real estate sales can pay their bills. It explains the rates, who pays, how splits work and what a realistic first year looks like.
By the end, you will be able to calculate what one closing actually puts in your pocket, and what to put in writing before you start work.
Real estate agent commission in Nigeria: what percentage do agents earn?
Real estate agents in Nigeria earn a percentage of the deal value, agreed in writing between the agent and the client or developer. On rentals, the market norm has long been 10% of the first year's rent as agency fee. On sales of land, houses and off-plan units, rates vary by developer and deal size, so always confirm the figure before you market.
No single federal law fixes commission rates. In Lagos, the Lagos State Government said in June 2025 that agency fees must stay between 0% and 10%, according to Nairametrics.
Deal type | Typical commission range | Usually paid by | Notes |
|---|---|---|---|
Land sales | Typical range, commonly quoted at 5% to 10% of the plot price | Seller or developer | Developers often publish a fixed realtor rate per estate. |
House and flat sales (resale) | Typical range, commonly quoted at 3% to 5% of the price | Seller, unless agreed otherwise | Larger deals often attract a lower percentage. |
Off-plan sales | Typical developer rate per project | Developer | Often paid in stages as the buyer pays instalments |
Rentals (yearly lets) | 10% agency fee by market custom, plus a separate legal fee | Usually the tenant in practice | Lagos: within 0% to 10% (June 2025); proposed 5% cap |
These ranges are not law and not a promise. Your agreement with the client or developer decides your rate.
Eze Maximus, founder of Win Realty Limited, puts it simply: "Your commission is not what the market pays. It is what your agreement says."
Who pays the agent's fee in Nigeria?
In Nigeria, whoever engages the agent is supposed to pay the agent's fee. On sales, that is usually the seller or developer, who pays the agent from the proceeds. On rentals, tenants usually pay the agency and legal fees in practice, even when the agent was engaged by the landlord. Write down who pays before work starts.
The rental side is where most disputes happen. Pulse Nigeria reported in May 2026 that the unwritten norm in Lagos is 10% for "agency" and 10% for "legal", and that a ₦2 million apartment can need about ₦3.5 million to move in once fees and deposits are added, according to Pulse Nigeria (27 May 2026).
The legal fee is for preparing the tenancy agreement. It is a separate charge from your commission and should be for real legal work, not a second commission.
What does the proposed Lagos 5% agency fee cap mean?
The proposed Lagos State Tenancy and Recovery of Premises Bill would cap agency fees at 5% of one year's rent, down from the customary 10%. It is not yet law. As of May 2026, the bill was still at committee stage in the Lagos State House of Assembly, so current rules still apply until the Governor signs it.
According to TheCable, the draft says an agent who collects more than 5% commits an offence. The penalty would be a refund, two years' imprisonment or a ₦1 million fine. The draft also says the fee is agreed with whichever party engaged the agent.
Professional bodies at the public hearing said the 5% limit conflicts with established professional charges.
If it passes, Lagos letting income falls by half per deal. Agents who rely on rentals will need more deals, or more sales.
How is commission split with firms and co-agents?
Commission in Nigeria is often shared. If you work under a firm, the firm usually keeps part of the commission for providing listings, marketing and its brand. If another agent brings the buyer or the property, the two agents usually share the fee. The split depends entirely on your written agreement, so agree it before the first inspection.
Common arrangements include:
Agent and firm split: the firm takes a share for listings, leads and support.
Co-agent split: when one agent holds the property and another brings the buyer, many agents split the fee equally.
Referral fee: a smaller share for someone who only introduces a client.
Staged off-plan payouts: developers may pay your commission in parts as the buyer pays instalments.
Get the split in writing
In Ojo v. SDV Nigeria Limited (2025), the Supreme Court held that an agent is not entitled to commission just for introducing a buyer. The agent must show the introduction was the effective cause of the sale, according to a BusinessDay case report.
That ruling makes written agreements essential. Your commission agreement should name the client, the property, the rate, who pays, when you get paid, and how any split works.
Our guide on the legal mistakes that cost Nigerian realtors their commission covers the clauses to include and the traps to avoid.
Eze Maximus, founder of Win Realty Limited: "A verbal split is a future quarrel. Write it down before the inspection, not after the payment."
What does one closing actually pay? A worked naira example
One closing pays you the gross commission minus every share and deduction. On a land sale through a developer, that usually means the developer's realtor rate, minus your firm's share, minus any co-agent share, minus tax and your own costs. The example below shows the method; your rates will differ.
Step | Example figure (illustrative) | Running total |
|---|---|---|
Plot price | ₦20,000,000 | |
Developer's realtor commission at 10% | ₦2,000,000 gross | ₦2,000,000 |
Co-agent share (50% to the agent who brought the buyer) | Minus ₦1,000,000 | ₦1,000,000 |
Firm's share of your half (30%, example only) | Minus ₦300,000 | ₦700,000 |
Tax withheld | 10% withholding tax on commission under the Nigeria Tax Act 2025 | Depends on your tax position |
Your costs on the deal (transport, data, adverts) | Minus your actual costs | Your real take-home |
The ₦2 million headline becomes about ₦700,000 before tax and costs in this example. That is why experienced realtors talk about take-home, not gross commission.
To see how the same maths works on high-value homes, read how to sell a ₦350M+ house in Nigeria as a realtor.
What does a realistic first year look like for a new realtor?
There is no reliable published figure for how much new realtors earn in their first year in Nigeria. Income depends on your deal type, your firm, your city and your daily activity. Many new agents earn little or nothing for the first few months, then earn in irregular lumps when deals close. Plan your finances for that pattern.
What usually shapes your first year:
Pipeline: how many people you speak to and how many inspections you book every week.
Deal type: rentals close faster but pay less; land and home sales take longer but pay more per deal.
Firm: a firm with verified listings and training shortens your learning curve.
Follow-up: many sales close weeks or months after the first inspection.
Registration: in Lagos, you must register with the Lagos State Real Estate Regulatory Authority (LASRERA) before practising.
A simple first-year checklist
Keep another income source or three to six months of savings while you build your pipeline.
Join a firm with written commission terms and verified titles.
Track conversations, inspections, offers and closings every week.
Sign a commission agreement on every deal.
Save part of every commission for the dry months.
Structured training shortens the learning curve. CRESP, the Certified Real Estate Sales Professional programme, teaches prospecting, objection handling and closing. It is a skills certification, not a licence, and it does not replace LASRERA registration.
Eze Maximus, founder of Win Realty Limited in Port Harcourt: "Commission is paid in lumps. Discipline is what turns lumps into a living."
Knowing the commission rate is easy; closing enough deals to earn it is the hard part, and that is what CRESP, the Certified Real Estate Sales Professional programme, trains you to do.
- Real estate agent commission in Nigeria is set by agreement, not by one national law.
- Rentals commonly attract 10% agency plus a separate legal fee; Lagos says agency fees must stay within 0% to 10%.
- The proposed Lagos 5% agency fee cap is not yet law as of the latest reports.
- Splits with firms and co-agents can cut your take-home far below the headline commission.
- Since Ojo v. SDV Nigeria Limited (2025), introducing a buyer alone does not guarantee commission.
- There is no guaranteed first-year income; plan for irregular payments.
Frequently asked questions
Is it legal for agents to collect 10% agency and 10% legal fee in Lagos?
The Lagos State Government said in June 2025 that agency fees must stay within 0% to 10%. The legal fee is meant for real legal work on the tenancy agreement. If the tenancy bill passes, the agency fee cap would fall to 5%.
Do realtors in Nigeria earn salary or only commission?
Most realtors in Nigeria earn commission only. Some firms pay a small salary or allowance plus commission to staff agents. Check your offer letter or agreement to see exactly what you will be paid.
When does a realtor get paid commission in Nigeria?
It depends on your agreement. Many developers pay after the buyer completes payment, or in stages on instalment deals. Put the payment trigger and date in writing.
Can a landlord refuse to pay the agent who found the tenant?
f the landlord engaged you and agreed a fee in writing, you have a claim. Without a written agreement, recovery is much harder. Always get a signed mandate before you market a property.
Do I pay tax on my commission?
es, commission is income and is taxable. Under the Nigeria Tax Act 2025, some payers may deduct tax before paying you. Speak to a tax adviser about your position.
Want the full system?
CRESP is the 13-module certification for Nigerian realtors: qualify, present, handle objections and close.
