.We need significant cut to curb illegal developments, say town planners

Prospective homeowners and property developers in Lagos area have heaved a sigh of relief over the recent increase in planning permits by over 100 per cent. Despite the slash in the rates, planners are demanding for significant reduction to boost voluntary compliance with physical planning laws and regulations, Victor Gbonegun writes.

After several outcries and apprehensions among critical stakeholders, particularly professionals under the aegis of Nigerian Institute of Town planners (NITP), it appears Lagos authorities may have yielded to their demands with the downward review of some rates for physical planning processes across the state.

Building planning permit rates recently took a leap in the construction and real estate sector of the state, following a review of prices by the government in June this year. The development triggered tension in the building sector, especially builders and property developers, who envisage tougher times in the housing sector.

Industry experts had feared that the over 100 per cent increase amid sluggish economic situation, exchange rate volatility and inflation/rising prices of building materials will cause the real estate sector to further nose-dive in its contribution to the Gross Domestic Product, as well as reduce activities in the construction industry.

Among the 36 states of the country, Lagos accounts for the most active construction sites with over 10,000 active housing projects. Experts had told The Guardian that landlords and property owners would capitalise on the situation to raise their rents, a development that could further compound homelessness among the nation’s 22 million population.

Before the increase, it was learnt that 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 is 35 per cent of building assessment and registration and application N5, 000 and N25, 000 respectively for all areas. The renovation fees are 25 per cent with former permit and 100 per cent with no proof of former permit.

In 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, it said: “The ministry has obtained the approval of the governor for the review of some rates utilised for physical planning process, especially the fees presently being issued 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 the Zone one that covers Eti-Osa, the rate indicates N320 for ground to fourth floor building; N600 from fifth to 10-floor while 11-floor and addition is N1000. Residential units are 1,000, 000 and stage fee is 40 per cent.

“For zone two covering Lagos Island, Kosofe, Somolu, Surulere, Oshodi-Isolo, Lagos mainland, Apapa, Amu-Odofin, Ibeju-Lekki and Ikeja, the rate indicates N200 for ground to fourth floor building, N500 from fifth to 10-floor, while 11-floor and addition is N800.

“Zone three covering Mushin, Ojo, Ikorodu, Alimosho, Agege and Ifako-Ijaiye, the rate indicates 150 for ground to fourth floor building, N400 from fifth to 10-floor, while 11-floor and addition is N600. For zone four covering Epe, Badagry and Ajegunle, the rate indicates 100 for ground to fourth floor building; N300 from fifth to 10-floor, while 11-floor and with N500 added. The 40 per cent staging fee cut across all zones.

Besides, the General Manager, LASPPPA, other heads of agencies that include state’s State Urban Renewal Agency, Building Control Agency and Planning and Environmental Monitoring Agency, were also put on notice.

It was gathered that other additional indices to be applied include commercial developments would be charged at 1.2 times the obtainable residential rates, all ancillary buildings such as gatehouse, general house swimming pools and others, would be charged the same rate as the highest floor.

“Premium areas within the zones as identified in the proposed reviewed schedule 11 would be charged 1.25 times the assessment fee only. This factor of 125 would also apply to buildings up to four floors in the premium areas. Spatial Enhancement Charges, Local Planning Authority fees, State’s Emergency Management Agency (LASEMA) fees and others would remain the same percentage as currently applied.

“A special levy of N10 million will be applied as a standardised payment in addition to other penalties for contravening developments identified by the Ministry within Zones I and premium areas in Zone two, where it has been proven that property owners knowingly disregarded Physical Planning Laws Standards and Regulations,” it stated.

There is also the application of 50 per cent rebate on the difference in the old and new fees for applicants, who had made total payment for planning permits before May 31, 2023, while all submissions that had previously received partial or full waivers from the governor will be exempted from the new rates.

The list of the locations to be identified as being within Premium Areas in all zones will be identified and reviewed periodically according to the notice, while application of the revised rates is to take effect immediately.

Speaking on the development, President, Association of Town Planning Consultants of Nigeria (ATOPCON), Bisi Adedire, said the reduction in statutory payment will encourage many people to develop their buildings rather than embarking on illegal development.

He said: “It will encourage people to come forth with their application for planning permit instead of illegal development by contravening planning regulations. It is a welcome development that will encourage voluntary compliance to law.

“The prospective developers will be willing and have confidence to showcase their project and there will be more engagement of both professionals and technicians, as well as improve market operation. Food vendors too will have something to sell on site and the economy will improve. This means more revenue to the government.

“By the time people pay a penal fee as a result of building without a planning permit, the government has removed the stage certification fee unlike before when you pay stage certification for a project that has already been completed whereas no one is coming to inspect it. The only thing one needs to do is to conduct integrity tests for existing buildings. It is another relief for those that have built without planning permits.”

Adedire said the new rate will trigger employment for professionals in the built industry. “By the time people are engaged in architecture design, more builders, engineers and artisans will also come on board,” he said.

However, the ATOPCON president said the new rate is still high despite the reduction and compared to what it used to be. The rate, he said, has increased astronomically. “We still need to appreciate the reduction because if the government had not, we would have remained like a toothless bull dog that can only bark but not bite,” he said.

However, the Chairman, NITP Lagos State chapter, Mr. Omotayo Awomosu, said the new rates are still a significant increase.

Awomosu said: “The increase would have worsened situations in the construction sector. The review is not really satisfactory but what can we do? It is an improvement; the review will reduce pressure, although not sure if it is reducing now. Since it is a downward review, there is a little improvement, we still ask for more.”