Many tenants in Nigeria pay a caution fee, security deposit or other form of deposit when taking possession of a rented property. The money is usually intended to protect the landlord against damage to the property, unpaid bills or other obligations of the tenant. The problem often arises when the tenancy ends and the landlord refuses to return the deposit. A tenant may hear statements such as: “The money is not refundable.” “It is part of the rent.” “You damaged the property.” “I will refund it when I am ready.” “The previous tenant never got theirs back.” Whether the landlord is entitled to retain the money depends on the nature of the payment, the tenancy agreement, the reason for the deduction, etc. A tenant who is entitled to a refund does not have to simply abandon the money. There are practical and legal steps that can be taken to recover it. What Is a Rent Deposit? The expression “rent deposit” is often used loosely in Nigeria to describe different payments made by a tenant. It is therefore important to establish exactly what the tenant paid. A payment described as a caution fee or security deposit is different from rent paid in advance. Caution Fee or Security Deposit A caution fee or security deposit is generally money held as security against specified obligations of the tenant. Depending on the agreement, it can be used to cover matters such as: damage caused by the tenant; unpaid utility bills; outstanding obligations under the tenancy agreement; missing items belonging to the landlord; or other losses expressly covered by the agreement. It is not ordinarily the same thing as rent. Rent Paid in Advance Rent paid in advance is consideration for the tenant’s occupation of the premises for the agreed rental period. It should not automatically be described as a security deposit. For example, if a tenant pays ₦2 million as one year’s rent, that ₦2 million is rent. If the tenant separately pays ₦200,000 as a caution fee, the ₦200,000 has a different legal character. This distinction becomes important when the tenancy ends. Is a Caution Fee Refundable in Nigeria? Generally, where a payment was genuinely made as a security or caution deposit, it is refundable subject to legitimate deductions authorised by the tenancy agreement or otherwise legally recoverable from the tenant. The landlord is not entitled to simply convert a security deposit into additional income because the tenancy has ended. The precise entitlement, however, depends on the agreement and the circumstances. The safest approach is to examine the document or receipt describing the payment. If the tenancy agreement expressly states that the caution fee is refundable at the end of the tenancy, subject to specified deductions, the tenant has a clear contractual basis for demanding its return. If the agreement is silent, the nature and purpose of the payment, the parties’ conduct and the surrounding circumstances become important. Can a Landlord Keep the Entire Deposit? Not simply because the tenant has vacated. A landlord who intends to retain all or part of a security deposit should have a legitimate basis for doing so. For example, the landlord can have grounds to deduct the reasonable cost of repairing damage actually caused by the tenant where the tenant is contractually responsible for that damage. The landlord should not treat ordinary deterioration resulting from normal use as though it were automatically compensable damage. The question is whether there is a legitimate loss for which the tenant is responsible. What Can a Landlord Deduct from a Security Deposit? The answer depends on the tenancy agreement and the applicable law. Common legitimate deductions can include: the reasonable cost of repairing damage caused by the tenant; unpaid utility bills attributable to the tenant; unpaid rent or other sums contractually owed; the cost of replacing missing items belonging to the landlord; and other amounts which the tenancy agreement validly permits the landlord to deduct. The landlord should be able to explain the basis of the deduction. A tenant should therefore ask the landlord for a breakdown where the landlord refuses to refund the entire deposit. Can a Landlord Deduct Money for Ordinary Wear and Tear? Ordinary wear and tear is different from damage caused by the tenant. A property naturally deteriorates through ordinary occupation. Examples can include: minor marks on walls; ordinary fading of paint; normal deterioration of fittings through age; reasonable wear to flooring; and other deterioration resulting from ordinary use. A landlord should not automatically charge the tenant for every change in the condition of the property. Where the landlord claims that the tenant caused damage, the tenant should request evidence of the alleged damage and the cost of rectification. What If the Landlord Says the Deposit Is Non-Refundable? The first question is: What exactly did the tenant agree to pay? The word “fee” alone does not necessarily determine the legal character of a payment. If the payment was expressly described in the tenancy agreement as a non-refundable fee, it must be distinguished from a payment expressly described as a refundable caution or security deposit. The court will look at the agreement and the circumstances surrounding the payment. A tenant should therefore not assume that every payment called a “caution fee” is automatically refundable without examining the agreement. Conversely, a landlord should not simply label a genuine security deposit “non-refundable” after receiving it if that is inconsistent with the parties’ agreement. What If There Is No Written Tenancy Agreement? The absence of a written tenancy agreement does not necessarily prevent a tenant from recovering a deposit. The tenant can rely on other evidence showing: that the money was paid; the amount paid; who received it; the purpose for which it was paid; the condition of the property; the circumstances in which the tenancy ended; and any agreement concerning repayment. Evidence can include: bank transfer records; receipts; WhatsApp messages; text messages; emails; photographs; videos; witness testimony; and communications with the landlord or agent. This is another reason why