Service charge: what you actually pay for

Service charge is the running cost of the shared parts of an estate or building, split between residents. In Lagos it typically covers security, generator diesel and maintenance, water, waste collection, cleaning of common areas, and estate road repairs.

Why the numbers vary so much

A serviced apartment on Victoria Island with a lift, a pool, a gym and 24-hour power carries a genuinely high cost base. A gated estate in Magodo with a security post and a shared borehole does not. When you see a wide gap between two service charges, the first question is what is inside each one.

Diesel is usually the largest single line. An estate promising 24-hour power is committing to a substantial monthly fuel bill, and that cost moves with the pump price.

What to ask before you commit

Ask for the last twelve months of accounts, not a headline figure. Ask whether the charge is reviewed annually and by how much it moved last time. Ask what happens if a neighbour does not pay, because in poorly run estates the shortfall lands on everyone else.

Ask specifically whether there is a sinking fund for major works. An estate with no reserve will hit residents with a special levy the first time the generator needs replacing.

A reasonable rule

If nobody can show you accounts, treat the quoted figure as a guess. A well-run estate keeps records and is happy to share them.