How Much Does It Cost to Start a Business in Lagos? (2026 Guide)

Lagos is Nigeria's commercial engine — and one of Africa's most dynamic business cities. But the cost of starting here catches many founders by surprise. Here's the realistic 2026 breakdown.

CAC Registration

Registering a business name (sole proprietor) costs ₦10,000–₦15,000 at CAC. Incorporating a private limited company (Ltd) costs ₦30,000–₦50,000 depending on share capital, plus the cost of a lawyer or accredited agent (₦20,000–₦80,000).

Total to register a Ltd company through an agent: **₦50,000–₦130,000**

Office Space

Your biggest variable cost — and the one with the widest range.

**Grade A Victoria Island / Ikoyi:** ₦2,000–₦6,000 per sqm/year. A small 50 sqm office: ₦100,000–₦300,000/month.

**Lekki Phase 1:** ₦1,500–₦3,000 per sqm/year. 50 sqm: ₦60,000–₦150,000/month.

**Ikeja / Yaba (mid-range):** ₦800–₦2,000 per sqm/year. 50 sqm: ₦35,000–₦80,000/month.

**Coworking spaces:** ₦15,000–₦80,000/month for a dedicated desk. Cowrywise, Launchpad Lagos, and Co-Creation Hub (CcHUB) are among the most popular in tech/startup circles.

Most Lagos landlords require 1–2 years rent in advance. Factor this into your startup capital.

Staffing (Monthly Costs)

• Entry-level administrative staff: ₦60,000–₦120,000/month
• Mid-level executive / finance: ₦200,000–₦500,000/month
• Senior manager / director: ₦600,000–₦2,000,000/month
• Driver: ₦70,000–₦120,000/month
• Security guard: ₦50,000–₦80,000/month

Don't forget employer contributions to pension (10% of basic salary) and ITF levy.

Utilities & Infrastructure

• Electricity (EKEDC / EEDC): Grid supply is unreliable. Budget ₦50,000–₦200,000/month for diesel generator, depending on size and usage.
• Internet: ₦20,000–₦80,000/month for business-grade fibre (Spectranet, Tizeti, GPON providers)
• Water: ₦5,000–₦20,000/month if mains is unavailable and borehole/tanker water is needed

Business Bank Account & Transaction Costs

Opening a business account is free at most banks but requires your CAC documents and directors' BVNs. Expect bank charges of ₦10,000–₦50,000/month depending on transaction volume.

Summary: Startup Cost Estimate (Year 1)

• **Lean home-office / online business:** ₦200,000–₦600,000
• **Small office on the mainland:** ₦1,500,000–₦4,000,000
• **Small office on the Island (Lekki/VI):** ₦3,000,000–₦10,000,000

These figures exclude inventory, product development, marketing, and sector-specific licenses (NAFDAC, FIRS, state-level permits). Always reserve 3–6 months of operating costs as a buffer — Lagos businesses face unpredictable costs from infrastructure gaps and regulatory demands.