14/09/2026
Let's Do Numbers this morning to reflect on looking beyond the RENT.
Suppose a property costs NGN 50 million and generates NGN 3.6 million annual rent.
At first glance:
NGN 3.6m ÷ NGN 50m × 100 = 7.2% gross rental yield
But suppose annual expenses are:
Maintenance: NGN 300,000
Management: NGN 180,000
Insurance/levies: NGN 120,000
Vacancy allowance: NGN 300,000
Total costs = NGN 900,000
Net rental income:
NGN 3.6m − NGN 900k = NGN 2.7m
Now the net yield is:
NGN 2.7m ÷ NGN 50m × 100 = 5.4%
So the investor shouldn't simply say, “This property gives me NGN 300,000 rent every month.”
The better question is:
“After all costs, vacancies and risks, what return am I actually getting on my NGN 50 million?”
And then ask:
“What could this property realistically be worth in 5 - 10 years?”
That is the thinking behind “Look beyond the rent. Study the numbers.”
