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The short answer
Before funding a Nigerian private school from the US, check that it holds the state's approval (in Lagos, from the Office of Education Quality Assurance), that its enrolment and fee records match its bank statements, that the premises are owned or securely leased and certified safe, and how your money goes in: shares, a loan or a partnership. Fees have been rising faster than many parents can absorb, so test the plan against families paying late or leaving.
Schools attract diaspora money because demand looks permanent and fees are paid in advance each term. The business is more delicate than it looks. Income arrives in three lumps a year, costs (mainly salaries) run every month, approval rules are strict, and a school's reputation, once lost, takes years to rebuild. Whether you are backing a relative's school or a new venture, these are the checks that matter.
1. Approval comes first
Private schools need approval from the state where they operate. In Lagos, the Office of Education Quality Assurance (OEQA) approves schools under the State Guidelines on Establishment and Operation of Private Schools. Radio Nigeria reported in February 2026 that OEQA approved 76 private schools in its first batch of the year (34 secondary, 41 nursery and primary, and one boarding school), with approvals run quarterly. Ask for the approval letter, check the approved categories (nursery, primary, secondary, boarding) match what the school offers, and confirm it with the state.
For a new school, approval is a project in itself; the Nigeria-side guide to starting a private school in Lagos covers OEQA's process.
2. Test the money
| What the proprietor says | What to check |
|---|---|
| Pupils enrolled | Register per class, compared with fee receipts |
| Fees per term | Published fee schedule and receipts issued |
| Collection rate | Fees received against fees billed, per term, for at least two years |
| Costs | Payroll, rent, diesel, maintenance, from bank statements |
| Debts | Loans, supplier balances, staff arrears, unpaid rent or levies |
Fees are rising sharply. AllAfrica, carrying a Vanguard report, said in September 2026 that most private schools raised fees by 30% to 40% for the new session, with two Lagos examples rising by about 28% and 44% a term, while a parents' association called for increases to be capped at 20%. Ask how many pupils left after the last increase.
3. Premises and safety
Check the title or lease of the site, whether the buildings have approvals and, in Lagos, building control certification. In July 2024 Lagos revoked all commencement certifications after a building collapse and said occupying a building without LASBCA certification was an offence. If the school rents, the lease term matters: a school cannot easily move mid-session. In Lagos, the Tenancy Law 2011 covers business premises outside the exempt areas and limits rent in advance from a new tenant to one year.
4. How your money goes in
- Shares in the company that runs the school: you share profits and risk, and need a shareholders' agreement covering decisions, dividends and exit.
- A loan to the school: a fixed repayment schedule and security, but no share of growth.
- Funding a specific asset (a classroom block, a bus) leased to the school: clear ownership, simple to monitor.
Whichever you choose, check the company on the CAC public search and have a Nigerian lawyer draft the agreement. On tax, section 163 of the Nigeria Tax Act 2025 exempts persons engaged in educational activities of a public character only where profits are not derived from a trade or business, so a commercial school should not assume it is exempt; take advice. On the US side, shares in a Nigerian company can bring reporting duties; see owning 10% of a Nigerian company and investing in a family business. This is not legal, tax or investment advice.
What to check first
- State approval letter and approved categories.
- Two years of enrolment, billing and collection records against bank statements.
- Title or lease of the premises and building certification.
- Debts and staff arrears.
- A written agreement for your investment.
Where Pryme fits
Late fees are the cash flow problem most schools share. A school with a Pryme Business Account in a supported sector can join Spaces, Pryme's merchant ecosystem, piloting in Lagos, Abuja and Port Harcourt, where parents with a Pryme account may be offered Loans on Spaces, lent by a licensed Nigerian microfinance bank, to pay fees at participating schools. Each parent sees the full agreement and accepts it before anything is drawn.
Questions people ask
Do private schools in Lagos need government approval?
Yes. The Lagos Office of Education Quality Assurance approves private schools under the state's guidelines, in quarterly approval exercises. Ask for the approval letter and confirm it.
Is investing in a private school in Nigeria profitable?
It can be, but income arrives termly while salaries are monthly, and fee collection is rarely 100%. Test the school's collection rate and costs from its bank statements before investing.
Are private schools tax-exempt in Nigeria?
Not automatically. The Nigeria Tax Act 2025 exemption for educational activities applies to those of a public character where profits are not from a trade or business. Take advice for a commercial school.
How can I invest in my sister's school from America?
Through shares, a loan or funding a specific asset, with a written agreement drafted by a Nigerian lawyer, and regular reports on enrolment, fees and costs.
Sources
- Radio Nigeria Lagos: OEQA approves 76 private schools (6 Feb 2026) · accessed Oct 2026
- AllAfrica (Vanguard): Private schools raise fees for September 2026 (14 Sep 2026) · accessed Oct 2026
- Peoples Gazette: Lagos revokes all building commencement certifications, directs owners to revalidate (27 Jul 2024) · accessed Oct 2026
- Lagos State Tenancy Law 2011 (Law No. 14 of 2011, Gazette 26 Aug 2011) · accessed Oct 2026
- LawGlobal Hub: Section 163, Nigeria Tax Act 2025 (25 Dec 2025) · accessed Oct 2026
- Legit.ng: How to verify a CAC certificate online (11 Sep 2026) · 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.