Airbnb in Lagos, almost ike everywhere else, isn’t just about tourists or foreigners. Many guests are Nigerians—business travellers, tech workers, japa returnees, or people attending weddings, burials and conferences. Unlike hotels, Airbnb offers a more personal, flexible and often cheaper alternative.
It is renting out a fully furnished short-term space, sometimes an extra room in your house, a serviced apartment, or a whole building purposely designed for this purpose. And with the way Lagos functions—always busy, always moving—there’s a steady demand.
Location Is Everything
Not every part of Lagos is ideal for Airbnb. The bustle mostly happens on the Island—Lekki Phase 1, Victoria Island, Ikoyi, Chevron, and sometimes parts of Ajah. These areas attract guests who value comfort, safety and proximity to hotspots. There are growing activities on the mainland—Ikeja GRA, Maryland, Ogudu—but not every part pulls in the kind of traffic that makes it profitable.
What It Takes to Start
People often assume Airbnb is cheap to start. Not quite. While it’s not as capital-heavy as real estate flipping or hotel construction, it still requires thoughtful investment.
Let’s say you’re renting or buying a small one-bedroom apartment in Lekki. To furnish it for Airbnb, you need a bed, a couch, AC, reliable Wi-Fi, a smart TV, kitchen appliances, good lighting, security, backup power and vibes. Guests expect more than just shelter; they want comfort.
Altogether, a modest but decent setup may cost ₦3 million–₦6 million upfront, depending on the location and taste level. It’s not small money, but it’s also not unreachable for serious investors.
How Much Can You Earn?
Now to the part everyone wants to hear: the earnings. How much does an Airbnb in Lagos bring in?
A studio or 1-bedroom in Lekki Phase 1, well-furnished, can earn ₦25,000 to ₦40,000 per night. If it’s booked 20 nights in a month, that’s ₦500,000 to ₦800,000 monthly. From that, you deduct service charges, cleaning, maintenance, and utilities, which may leave you with about ₦300,000–₦600,000 net profit.
Over time, your initial investment gets recovered, usually within a year to 18 months. And then, it becomes real profit. But again, this only works if you’re consistent, keep the place in top shape, and your location is hot.
What Guests Look For
In Lagos, Airbnb guests are quite particular. Most don’t just want a room; they want peace of mind. That includes 24/7 power supply (inverter or generator), fast Wi-Fi, clean environment, security and access to restaurants, malls and transport
Fail in any of these areas, and your reviews will reflect it. Once reviews dip, bookings drop. Lagos guests don’t joke with comfort, especially those paying a premium.
So profitability is tied directly to satisfaction. Happy guests mean repeat bookings and referrals. Angry guests? Well, that’s a fast road to loss.
The Hidden Workload
Many people assume Airbnb is passive income. Yes, it’s more flexible than some other businesses, but it isn’t entirely hands-off.
From messaging guests to arranging cleaning, managing check-ins, replacing spoiled lightbulbs, and dealing with NEPA issues, it can be demanding. This is why a lot of successful hosts either use Airbnb management companies or build a solid team.
Tade, for instance, outsourced the daily management after his second property. It cost him a percentage of the earnings, but it saved him the stress and helped him scale faster.
Risks and Challenges You Should Expect
Every opportunity comes with its risks, and Lagos Airbnb hosts face several key challenges. Some guests may damage property and then disappear, so it’s important to have a damage policy and a deposit strategy in place. Additionally, rainy seasons and economic downturns can lead to decreased bookings. Hosts also need to be aware of fraudulent bookings, theft, and guest misconduct.
While the short-term rental market in Lagos is still expanding, potential government regulations or increased taxation could impact profitability.
Being aware of these risks helps you prepare. It’s essential to think strategically, rather than just focusing on profit.
Which Pays More?
This is a common debate.
Let’s say a standard 1-bedroom in Lekki rents out for ₦1.8 million yearly (₦150,000 monthly) under long-term rental. Compare that to Airbnb, where the same apartment might make ₦600,000 monthly with proper occupancy.
Even after removing expenses, Airbnb still brings in double or more when it works. However, long-term rentals offer less stress, steady income and fewer surprises. So it depends on your goals: Do you want higher profit and are willing to work for it? Airbnb. Want something calmer and consistent? Stick with the long-term.
***
Featured Image by Kindel Media for Pexels.
