In Nigeria, a real estate agent’s commission is usually split according to who brought the client, who controls the listing and what each party agreed to before the transaction started. There isn’t a “standard split” that works for every deal.
The first figure that you need to establish is the gross commission. Agents generally work for around 5% of the purchase price in a home sale, but this can be higher or lower depending on the property, location, value and level of service. For rentals, the usual agency fee is around 10% of the annual rent. These are market conventions, not a national blanket of tariffs.
A sole agent who finds the property, finds the buyer or tenant and completes the deal can earn the full agreed commission, minus any business expenses and taxes. If there are two agents involved, the money is usually divided up as a co-brokerage commission.
The most common way is a 50/50 split. For example, if a property is sold for ₦100 million with an agreed commission of 5%, the gross commission is ₦5 million. Two agents working together could earn ₦2.5 million apiece.
The division is not always the same. The listing agent who is the agent with the landlord’s or seller’s mandate, can get 60% or more, with the balance going to the introducing agent. This is the work of the listing agent, who obtains the instruction, prepares the property, manages the inspections and negotiates with the owner. In other cases, the agent who delivers the paying customer gets the lion’s share.
Some companies do things differently. A brokerage may hire an agent, taking 20% to 50% of the commission to cover office space, marketing, compliance, legal support and access to property portals. The agent gets the remainder. Referral fees may also be paid by large agencies to people who bring in a successful client.
It is safest to document the split prior to inspections, introductions or marketing. The agreement should lay down the commission rate, who pays it, whether VAT is included in the figure, how co-agents will be paid and what happens if the client deals directly with the owner.
Disputes usually occur when there is no clear mandate and several agents are advertising the same property. A prospective tenant or purchaser may be required to pay several ‘agency fees’ on the same deal. Lagos is governed by the state’s tenancy framework and consumer-protection laws. Nationally, the practice of estate surveying and valuation is regulated by ESVARBON under the Estate Surveyors and Valuers (Registration, etc.) Act.
Here’s the simple rule. The commission belongs to the agent who earned it by having a bona fide agreement, not automatically to whoever first listed the property.