Get Guardian on GoogleA property development company, Noble Grounds Limited, has criticised the rising cost of obtaining Certificates of Occupancy (C of O) in Ogun State, saying excessive and unexplained charges are discouraging property investment and slowing real estate development.
The company’s Managing Director, Olajide Dosunmu, who spoke to journalists in Lagos, urged the state government to review its land documentation process and publish a transparent and standardised fee structure.
He cited the case of a developer processing a C of O for a 50-acre parcel of land, whose title documentation and associated charges were initially estimated at N50 million before the present administration took office.
However, following a prolonged suspension of C of O processing and its subsequent resumption, the developer reportedly received a bill of N1.5 billion.
Dosunmu questioned the increase, saying the government had not provided a clear valuation formula or breakdown to justify the charges. He warned that unpredictable title costs could discourage investment, particularly as developers without valid land documentation struggle to secure bank financing.
He said the situation was slowing formal property development and encouraging informal construction, while investors who obtained titles under previous administrations faced fewer obstacles than new entrants.
Dosunmu also warned that the charges could favour foreign investors with deeper financial resources over indigenous developers.
Comparing Ogun’s land administration with Lagos, he said the latter publishes gazetted land values and statutory charges, allowing applicants to estimate the cost of obtaining titles. He urged Ogun to adopt a similar system based on published rates, location-specific valuations and clearly defined processing fees, including stamp duties.
Dosunmu said the issue had also been raised by industry stakeholders at a forum involving the Federal Minister of Finance, particularly during discussions on infrastructure and affordable housing finance. He urged developers to speak out on the challenges, adding that transparent land administration would improve access to finance, attract investment, expand housing delivery and create jobs.
He appealed to the state government to prevent title documentation costs from becoming a barrier to legitimate property development.
