Lagos Building Tax Increases Housing Development Costs

In Lagos, a developer in Akoka, Yaba, encountered significant delays after starting construction without a Letter of Authorisation to Build, despite having a LASPPPA Planning Permit. TPL.

Niyi Aderohunmu, Co-founder and Director of Goania Project Ltd., explained that this incident underscores the confusion between planning approval and building control. Regulatory costs for developers can accumulate to approximately 30% of total project expenses, as they navigate multiple stages from planning approval to final certification.

Bright Okereke, co-founder and president of Flinx Holding Co., noted that these regulatory costs have become a major part of development expenses. Engr. Habeeb Odusanya of Fort Construction Ltd. pointed out that uncertainty and delays further inflate project costs.

Ayodeji Johnson, CEO of Elara Development, acknowledged improvements in the approval process but called for a more predictable system. Aderohunmu outlined the building approval process in five stages, emphasizing that costs begin before submitting a Planning Permit application.