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The short answer
A caution fee receipt should record the amount, state that it is a refundable deposit, list the only grounds for deduction (damage beyond fair wear and tear, agreed unpaid bills, missing items, agreed late charges) and set a refund date. Fair wear and tear and routine repairs should not be deducted. Unresolved refunds can go to the FCCPC or, in Lagos, the Small Claims Court.
A caution fee is a refundable deposit held against damage, unpaid bills or missing items. Landlords take it at the start of a tenancy, shortlet hosts take it at check-in, and equipment hire firms take it before a generator or sound system leaves the yard. Most arguments over caution fees come from the same gap: nobody wrote down, at the start, what could be deducted and when the balance would be returned.
What a good caution fee receipt does
- Proves the amount paid, by whom, for which property or item, and how.
- States that the money is a refundable deposit, not rent, a fee or an advance payment.
- Lists the only grounds for deductions, so neither side can invent new ones later.
- Sets a date by which the balance is refunded, and how.
- Records the condition of the property or item at the start, by checklist or dated photos.
The Federal Competition and Consumer Protection Act also gives consumers a right to a written record of every transaction, as summarised by FE Fred-Young & Evans on Mondaq. For a shortlet guest or an individual hiring equipment, the receipt below is that record.
The template
Copy and adapt. Fill in the square brackets. Have a lawyer check the wording for a long tenancy; state tenancy laws may also set rules on deposits, so check the law in your state.
- CAUTION FEE RECEIPT No. [ ] Date: [dd/mm/yyyy]
- Received from [payer name], phone [ ], the sum of ₦[amount in figures] ([amount in words]) by [transfer / cash / POS], reference [ ].
- This sum is a refundable caution deposit for [property address and unit / shortlet apartment and dates / item hired with serial number] for the period [start] to [end]. It is not rent, a booking fee or part payment.
- Allowed deductions only: (a) the reasonable cost of repairing damage beyond fair wear and tear, shown by invoice or quote; (b) unpaid utility, service or other bills for the period that the payer agreed to bear; (c) the replacement cost of items listed on the inventory that are missing; (d) [for shortlets: a cleaning charge of ₦[ ] where the unit is left in a condition set out in the house rules]; (e) [for hire: late return at ₦[ ] per day].
- Not deductible: fair wear and tear; repairs needed before the start date; repainting as routine; any cost not supported by an invoice, quote or photo.
- Condition record: the attached checklist and [number] dated photos, signed by both parties at the start, are the agreed starting condition.
- Refund: the holder will inspect within [ ] days of the end date and refund the balance to [account name and number] within [ ] days of the end date, with a written list of any deductions and copies of supporting invoices.
- Disputes: if the payer disagrees with a deduction, the parties will discuss within [ ] days; the undisputed balance is refunded on time regardless.
- Signed: [Holder name and signature] / [Payer name and signature]
Which deductions are reasonable
| Situation | Reasonable to deduct? | Why |
|---|---|---|
| Broken window during the stay | Yes, at repair cost | Damage beyond wear and tear, with invoice |
| Faded paint after two years | No | Fair wear and tear |
| Unpaid prepaid meter top-ups the tenant agreed to cover | Yes, if agreed in writing | Bill for the period the payer agreed to bear |
| Shortlet guest leaves dishes unwashed | Only if a cleaning charge is in the house rules | Must be agreed in advance |
| Generator returned two days late | Yes, at the daily rate agreed | Written into the receipt |
| Landlord decides to retile after you leave | No | Improvement, not damage |
Worked example: equipment hire
Example only. An events company in Abuja hires a sound system for a weekend and pays a ₦150,000 caution fee. It returns the system one day late; one microphone is missing.
| Item | Amount |
|---|---|
| Caution fee paid | ₦150,000 |
| Late return, 1 day at agreed ₦20,000 a day | -₦20,000 |
| Missing microphone, replacement invoice | -₦35,000 |
| Balance refunded | ₦95,000 |
The hire firm sends the refund with a written list of the two deductions and the microphone invoice. Because both were agreed grounds on the receipt, there is little to argue about.
If the refund does not come
- Write to the holder, quoting the receipt number and the refund clause, and give a date.
- If you are a consumer, complain to the business first. The FCCPC's FAQs say a complainant must have engaged the provider before filing, and that complaints to the FCCPC are free and can be lodged through its portal with proof of the transaction.
- In Lagos, a liquidated money claim up to ₦5,000,000 can go to the Small Claims Court under the 2023 Practice Direction, starting with a Form SCA 1 letter of demand giving 14 days.
Where Pryme fits
Taking the caution fee by transfer into a Pryme Business Account gives both sides a dated record, and a verifiable receipt from receipts and statements, built with VerifyDoc.ai, lets a guest or tenant check it has not been altered. Hosts and hotels in Spaces can read more at Spaces; see also the customer deposit receipt template and what a verifiable receipt is.
Questions people ask
Is caution fee refundable in Nigeria?
It should be, less only the deductions agreed at the start. Write the refundable status, the allowed deductions and the refund date on the receipt.
Can a landlord keep my caution fee for painting?
Routine repainting and fair wear and tear are not damage. Unless your agreement says otherwise, these are not fair grounds for keeping a caution deposit.
How long should a shortlet host take to refund caution fee?
There is no single national rule found for this article. Agree a number of days on the receipt, and inspect promptly at check-out.
Where can I report a business that refuses to refund my caution fee?
Complain to the business first, then to the FCCPC through its complaints portal. In Lagos, claims up to ₦5m can go to the Small Claims Court.
Sources
- The rights of a consumer under the FCCPA (Mondaq, FE Fred-Young & Evans, 23 Dec 2019) · accessed Oct 2026
- FCCPC FAQs: making a complaint · accessed Oct 2026
- Lagos State Practice Direction on Small Claims Court 2023 (copy on lagosmepb.org) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.