In June this year, the Lagos State government increased building planning permit rates by 100 percent. The dust raised by that increase could not settle until recently when the government reversed itself by reviewing the rates downwards, ostensibly on the advice of built environment professionals.
According to official government sources, the rates have been brought down by 40 percent. Though this seems significant, the professionals, especially town planners acting under the aegis of Nigerian Institute of Town planners (NITP), are urging the state government to bring it down further in order to boost voluntary compliance.
According to the professionals, the 100 per cent increase amid sluggish economic situation, exchange rate volatility, cost-push inflation and rising building materials prices would lower real estate sector’s contribution to the Gross Domestic Product, as well as reduce construction activities.
Among the 36 states of the country, Lagos has the most active construction sites, accounting for over 10,000 active housing projects. BusinessDay learnt that landlords and property owners would capitalise on the situation to raise their rents, a development that could further compound homelessness among the state’s 22 million population.
The official sources reveal that, before the increase, building assessment was N10, 000 for one to 650 square meters and N4,000 for subsequent 1,000 square meters for all areas, while stage certification was 35 per cent of building assessment and registration, and application N5, 000 and N25, 000 respectively for all areas. The renovation fees were 25 per cent with former permit and 100 per cent with no proof of former permit.
A recent memo addressed to all heads of departments and units under the state’s Ministry of Physical Planning and Urban Development by the Permanent Secretary, Oluwole Sotire, said that the ministry had obtained the approval of the governor for the review of some rates used for physical planning process.
This approval applied mostly to the fees being issued presently by the Lagos State Physical Planning Permit Authority (LASPPPA) as contained in Schedule 11 and 13 of the state’s physical planning permit regulation 2019 as amended.
The proposed new rates cover four zones of the state. In Zone one which covers Eti-Osa, the rate shows that N320 is for ground to fourth floor building; N600 for five to 10-floor buildings while 11-floor and above is N1000. Residential units are 1,000, 000 and stage fee is 40 per cent.
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“For zone two covering Lagos Island, Kosofe, Somolu, Surulere, Oshodi-Isolo, Lagos mainland, Apapa, Amuwo -Odofin, Ibeju-Lekki and Ikeja, the rate shows that N200 is for ground to four-floor building, N500 for five to 10-floor, while 11-floor and above is N800.
In Zone three which covers Mushin, Ojo, Ikorodu, Alimosho, Agege and Ifako-Ijaiye, the rates show that N150 is for ground to four-floor building, N400 for five to 10-floor, while 11-floor and above is N600.
For zone four covering Epe, Badagry and Ajegunle, the rate indicates N100 for ground to four-floor building; N300 from five to 10-floor building, while 11 floors is N500.
The 40 percent staging fee cut across all zones.
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