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The short answer
A US company taking serviced space in Lagos pays a monthly or upfront licence fee plus 7.5% VAT, may have to deduct Nigerian withholding tax from what it pays, and should stamp the agreement within 30 days. Published prices vary by building and change often, so get dated written quotes; the fee schedule matters more than the headline desk rate.
Why there is no single honest price
Ask five operators in Lagos for a four-person private office and you will get five different structures: a per-desk rate, a per-room rate, a rate that includes power and internet, a rate that does not, and a discount for paying a year upfront. Many quotes are in naira, some are pegged to the dollar. We could not find an official or independent price index for serviced offices in Lagos as at October 2026, so this guide does not quote a "typical" monthly figure. Anyone who gives you one without a date and a building name is guessing.
What you can control is the comparison. If every quote is broken into the same lines, you can compare a coworking floor on the Island with a smaller building on the Mainland on a fair basis, and you will know what the first invoice will look like before you sign.
The lines that make up the real cost
| Cost line | What to ask | Why it matters |
|---|---|---|
| Licence or membership fee | Per desk or per room? Monthly, quarterly or annual? | Annual upfront terms are common in Lagos and tie up cash |
| VAT | Is the quote VAT-inclusive? | The standard rate is 7.5% (PwC, May 2026) |
| Service charge | Is cleaning, security and reception included? | Often a separate line on the invoice |
| Power and diesel | How many hours of backup power, and is diesel billed on top? | Grid supply is not continuous; this can move the monthly bill |
| Internet | Speed, redundancy and who to call at 2am New York time | A shared connection may not suit a support team |
| Deposit and set-up | How many months, refundable when, on what conditions? | Cash you will not see again for a year or more |
| Meeting rooms and extras | Hours included, then the hourly rate | Client meetings add up |
Tax lines a US company forgets
VAT
Serviced space is a taxable supply in Nigeria, and the standard VAT rate is 7.5% according to PwC's Nigeria summary (last reviewed 29 May 2026). If your Nigerian subsidiary is VAT-registered, the VAT on the office invoice may be recoverable as input VAT where the space is used for taxable supplies; the same summary notes input VAT on services is claimable. If the contract is signed by the US parent with no Nigerian entity, that VAT is a straight cost.
Withholding tax
Companies paying Nigerian suppliers deduct withholding tax and remit it. PwC lists 10% for rent, hire or lease and 2% for "other services" paid to a resident company. Whether a serviced office licence is treated as rent or as a service depends on how the agreement is written, so ask the operator how other corporate tenants treat it and confirm with your adviser. The deducted amount is not an extra cost; it is part of the fee paid to the tax authority instead of the operator, and the operator needs a receipt from you to claim the credit. Our Nigeria library explains how WHT credit notes work.
Stamp duty
PwC notes that stamp duty is payable on any agreement first executed in Nigeria and that instruments must be stamped within 30 days of execution. An unstamped licence agreement can be harder to rely on in a dispute, so build the stamping step into your signing plan.
A worked example
Example only, with made-up numbers. A small Lagos team is quoted ₦1,500,000 a month for a private office, VAT-exclusive, 12 months paid upfront, plus a two-month refundable deposit.
- Annual fee: ₦1,500,000 x 12 = ₦18,000,000
- VAT at 7.5%: ₦1,350,000, so the invoice is ₦19,350,000
- Deposit: ₦3,000,000, refundable at exit subject to the agreement
- Cash needed at signing: ₦22,350,000
- If the fee is treated as rent and 10% WHT applies: ₦1,800,000 is withheld and paid to the tax authority, and the operator receives the rest of the fee plus VAT
The point of the example is the shape, not the figure: the cash you need on day one can be well above twelve times the monthly rate.
Naira quotes, dollar quotes and the exchange rate
Some operators quote in dollars or index the naira fee to the dollar. For a US company that sounds convenient, but it moves the exchange-rate decision from you to the operator. If the quote is in naira, you choose when to convert and can budget in dollars using a rate you have locked. If it is dollar-indexed, ask which rate is used, on which date, and whether a fall in the naira raises your invoice mid-term. Write the answer into the agreement. Also ask whether the operator can legally invoice and be paid in dollars inside Nigeria; most local suppliers will expect naira for local services, and your Nigerian entity's books are kept in naira.
Lease terms to negotiate
- Term and exit: can you leave after six months with notice, or are you locked in for the year?
- Price review: how is the fee reset on renewal, and is a dollar peg written in?
- Deposit refund: the timeline and the deductions allowed.
- Who signs: the US parent or the Nigerian subsidiary. The contracting party decides who can recover VAT and who must deduct WHT.
- Registered address: whether the operator lets you use the address for CAC filings and tax registration.
- Business premises: Lagos runs a business premises registration paid through the LIRS eTax portal, according to a Lagos MEPB process guide; ask the operator whether tenants usually register.
If you are still deciding whether you need a Nigerian entity at all, read setting up a Nigerian subsidiary from the US and what hiring in Lagos costs first; the office is usually the smaller line.
Where Pryme fits
A Pryme Business Account holds USD and NGN with local account details for each, so a US company can fund the Lagos office in naira when it chooses. Swap shows the rate and the fee before you approve, and the Finance agent can prepare the WHT schedule for a person to approve.
Questions people ask
How much is a serviced office in Lagos per month?
Prices depend on the building, area, desk count and what is included, and they change often. We found no official price index as at October 2026, so get dated written quotes broken into fee, VAT, service charge, power and deposit lines.
Do I pay VAT on office rent in Lagos?
Serviced space is generally a VATable service at the standard 7.5% rate. A VAT-registered Nigerian subsidiary may be able to recover it as input VAT; a US parent without a Nigerian entity usually cannot.
Should a US company deduct withholding tax on a Lagos office?
A company paying a Nigerian supplier generally deducts WHT: PwC lists 10% for rent and 2% for other services paid to resident companies. Which applies depends on the agreement; confirm with an adviser.
Is it better to rent an office or use coworking in Lagos?
For a team under about ten, coworking or serviced space usually avoids the deposit, fit-out and generator costs of a direct lease. Compare quotes on the same lines and check exit terms before committing to a year.
Sources
- PwC Worldwide Tax Summaries: Nigeria, other taxes (last reviewed 29 May 2026) · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, corporate withholding taxes (last reviewed 29 May 2026) · accessed Oct 2026
- Lagos MEPB: Regulatory process of business premises registration (undated PDF) · 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.