Lagos building approval costs approach 30% of project costs, practitioners say
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Regulatory and approval charges across the building process in Lagos are getting closer to 30% of the total cost of some projects, practitioners told Nairametrics, warning that delays add to the burden.
Regulatory and approval costs in Lagos can now approach 30% of the total cost of running some building projects, industry practitioners have told Nairametrics, as charges accumulate across the development process rather than arriving as a single fee.
A town planner and co-founder of Goania Project Ltd, TPL Niyi Aderohunmu, described a case where a developer in Akoka, Yaba, began blockwork three weeks after obtaining his planning permit, only for Lagos State Building Control Agency (LASBCA) officials to seal the site because he lacked a Letter of Authorisation to Build and the required green sticker. Work stopped while labour stayed idle and bank interest continued to run.
Aderohunmu said building approval is a continuous regulatory process with five broad stages: pre-application documentation, planning permit approval, construction authorisation, stage inspections and final certification. Developers must first engage built-environment professionals - including a town planner, architect, quantity surveyor, builder and engineers - and prepare documents such as proof of land ownership, survey plans and drawings, with larger projects requiring a Land Use Planning Analysis Report (LUPAR) and an Environmental Impact Assessment.
Charges assessed by the Lagos State Physical Planning Permit Authority (LASPPPA) vary by location, proposed use, building size and number of floors. Lagos divides its assessment structure into four zones, with Zone 1 covering areas such as Eti-Osa, Ikoyi and Victoria Island, and Zone 4 covering Epe and Badagry. Additional components can include layout and fencing charges, local development levies, a Spatial Enhancement Contribution, a LASEMA levy and an Infrastructural Development Charge.
Bright Okereke, co-founder and president of Flinx Holding Co., said regulatory costs have become a significant part of development expenses, while Engr Habeeb Odusanya of Fort Construction Ltd said uncertainty and delays can raise overall project costs. Ayodeji Johnson, CEO of Elara Development, acknowledged that Lagos has made progress in approvals and permitting but said developers still need a more predictable system.