In a 2022 article, Bloomberg estimated that nearly two-thirds of Nigeria’s 200 million people now live on less than $2 a day, quoting data from the National Bureau of Statistics. This data suggests that almost 133 million Nigerians, or 63% of Nigeria’s 200 million population, are “multi-dimensionally poor.” In the past few years, the level of poverty and economic hardship in the country has more than doubled. Explore companies that make renting easier for Lagosians amidst these challenges. Across the country, the majority of Nigeria’s population suffers from simultaneously from multiple economic challenges, including a lack of access to clean energy, housing, health care, water, and sanitation. This has pushed many Nigerians to devise creative ways of providing for those needs and reducing the burden of living expenses.
This, for instance, has given rise to a number of technology startups coming to solve these problems, especially in the housing sector. Estimates by the Nigerian Bureau of Statistics put Nigeria’s housing deficit at over 20 million units. Across core cities like Abuja and Lagos, high rental prices and gross undersupply have historically made it difficult for low to middle-income earners to pay the annual rents typically demanded by landlords. With inflation at 26.72%; the highest in two decades, Nigerians are forced to explore flexible alternatives (monthly payment options) to finance their major living expenses, especially rent and home supplies. This is in a bid to cushion the impact of the worsening cost of living.
In this article, we will be discussing some of the companies that are making it flexible for working-class Nigerians to rent apartments and pay their rent monthly.
Monthly
Monthly started in July 2022 with the goal to offering a convenient and tech-driven solution for the working population in Nigeria to pay their rent monthly. The company provides rent of up to N5,000,000 for people who are gainfully employed and have a good credit history. As per the data that we are tracking, the company charges 2.33% per month on a reducing balance basis and has been able to secure partnerships with a number of the leading property listing platforms in Nigeria, including BuyLetLive and Nigeria Property Centre.
Moni Africa
Moni Africa started off as a financial technology company based in Nigeria. The company provides digital financial services and products, including mobile banking and lending solutions, to individuals and small businesses in Africa. Moni Africa aims to enhance financial inclusion and access to credit in the region. Other products by Moni include:
- Mobile banking
- Micro-loans
- Bill payments
- Airtime recharge
- Savings accounts
In 2021, the company launched its rent financing product targeted at individuals who are employed in Lagos. Similar to Monthly, Moni provides loans up to N5,000,000 at 3.5% monthly interest charged on a reducing balance basis. The company has since partnered with Rank Capital Limited as a financing partner.
See how the rent financing providers compare in terms of interest rates and other metrics.
| Rent Financing Partner | Annual Interest rate | Monthly Interest Rate | Equity Contribution | Reducing balance basis | Date Established | Funding Partners |
| Monthly | 28% | 2.33% | 4.00% | Yes | 2022 | Dot Microfinance Bank |
| Moni Africa | 42% | 3.50% | 5-25% | Yes | 2021 | Rank Capital Limited |
| Rent4Less | – | – | Not confirmed | Not confirmed | 2021 | Alpha Mead Group |
| Rent Now Pay Later by Spleet | 48% | 4.00% | 5-25% | Yes | 2022 | Spleet |
| RentSmallSmall | 45% | 3.75% | NA | Not confirmed | 2018 | SmallSmall Technology |
| Ivantage | 36% | 3.00% | Not confirmed | Yes | 2022 | iVantage |
| Kwaba | 72% | 6.00% | Not confirmed | Yes | 2019 | Kwaba |
Rent4Less by Alpha Mead
Rent4Less is a subsidiary of Alpha Mead Group, a Nigerian real estate and facilities management company. The company offers property rental and management services, focusing on providing cost-effective rental solutions to individuals and businesses in Nigeria. This is in response to the rising cost of rent default noticed by the parent company.
In July 2021, Alpha Mead built the rent4less product as a way to solve this problem and has recently raised $1m series one funding to entrench monthly rental culture across the continent. The funding came from Cardinalstone. Based on the data that we are tracking, the company is looking to accelerate growth and replicate the success they have recorded in Nigeria across Africa.
Rent Now Pay Later by Splee
Rent Now Pay Later is a service offered by Spleet, a proptech company operating in the Nigerian real estate market. It allows tenants to access rental properties without paying a full security deposit upfront, offering more flexible and affordable renting options. According to the company, the product is tailored to allow Spleet members the opportunity to pay for a home on Spleet with collateral-free loans.
RentSmallSmall
RentSmallSmall is a Nigerian proptech platform that specializes in providing rental solutions to students and young professionals. They offer shared housing options and flexible rental terms, catering to the specific needs of their target demographic. Rentsmallsmall’s model is different in that the company does not literally offer rent loans.
They offer properties that provide monthly payment options. This, however, comes with the cost of capital already built into the monthly rental sum. We did an analysis and found that the difference between their offering and the average rental price of comparables in the market is 45%. This can be argued to be the cost of capital (or interest) on the properties listed on their platform.
iVantage
iVantage is a financial technology company that enables mortgage bankers to leverage AI customer banking and savings data to offer tailored products with reduced equity contribution requirements to buyers qualified homes, thereby democratizing access to mortgages and providing flexibility.
The company launched its flexible rent product in November 2022 and has since secured partnerships with several property listing platforms to facilitate market penetration.
Kwaba
Kwaba is a financial technology company that enables mortgage bankers to use AI customer banking and savings data to offer customized products with reduced capital requirements to qualified home buyers. The company is looking to democratize access to homeownership by providing flexibility.
If you are looking to rent an apartment, you can use the search filter on BuyLetLive to select property options that meet your specifications and budget. You can also find rent financing partners on BuyLetLive.
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Thank you for sharing this insightful article. Well done BLL!!!!
Thanks for your kind words! We’re glad you enjoyed the article.
This is quite mind blowing and educating
Mennhhh people get brain oooo