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Last year, a developer in Akoka, Yaba, began blockwork three weeks after obtaining his LASPPPA Planning Permit.
LASBCA officials arrived and sealed the site because he did not have a Letter of Authorisation to Build or the required green sticker.
Work stopped, leaving labour idle while bank interest continued to run.
TPL. Niyi Aderohunmu, a town planner and Co-founder and Director of Goania Project Ltd., shared the experience with Nairametrics while explaining the stages and costs developers face from planning approval to completion.
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The developer had assumed his Planning Permit was enough to start construction, but Aderohunmu said the incident highlights how developers can misunderstand the distinction between planning approval and building control.
In Lagos, regulatory and approval costs can extend beyond the initial permit, with industry practitioners estimating that they are getting closer to 30% of the total cost of running some building projects.
Rather than a single fee, the costs accumulate across the different stages of development, from professional documentation and planning approval to construction inspections and final certification.
What they are saying
To better understand how building approval works in Lagos, including the costs, requirements, delays and regulatory obligations developers face, Nairametrics spoke to built-environment professionals.
Bright Okereke, co-founder and president of Flinx Holding Co., said regulatory costs have become a significant part of development expenses.
- “These costs are now getting closer to 30% of the total cost of running a building project,” he said.
For Engr. Habeeb Odusanya of Fort Construction Ltd., the challenge goes beyond the fees themselves, as uncertainty and delays can increase the overall cost of a project.
- “The bigger issue is the combination of the cost, uncertainty and time involved. Developers need more predictable timelines so they can plan their projects and financing properly,” he said.
Ayodeji Johnson, CEO of Elara Development, also said Lagos has made progress in its approvals and permitting processes but still needs a more predictable system.
- “Certainty is extremely important in development because delays ultimately translate into additional costs,” he said.
Aderohunmu explained that building approval is not a one-off process or payment to a single government agency, but a regulatory process that continues through different stages of a development.
He said the requirements and costs involved depend on factors including the location, proposed use, building size or volume and number of floors. Professional fees, testing, inspections, insurance, amendments and delays can also add to the overall burden on developers.
- “Regulatory compliance should be treated as an ongoing cost that continues beyond the initial Planning Permit and throughout the construction and completion stages,” he said.
Aderohunmu outlined the process in five broad stages: pre-application documentation, Planning Permit approval, construction authorisation, stage inspections and final certification.
The approval process starts before the application
The cost of regulatory compliance begins before a developer submits an application for a Planning Permit.
According to Aderohunmu, developers must first engage the relevant built-environment professionals and prepare the technical and legal documents required for the proposed development.
Depending on the nature and scale of the project, these professionals may include a town planner, architect, quantity surveyor, builder, structural engineer, mechanical engineer and electrical engineer.
The developer must also prepare documents such as proof of land ownership, a survey plan, architectural and engineering drawings, soil test reports and other supporting documents required for the application.
For larger or more complex developments, additional requirements may include a Land Use Planning Analysis Report (LUPAR) and an Environmental Impact Assessment (EIA).
This means developers can incur significant professional and technical costs before LASPPPA assesses the statutory approval charges.
Once the required documentation is prepared, the application is submitted through the Lagos State Physical Planning Permit Authority (LASPPPA), which assesses whether the proposed development is suitable for the site and complies with planning requirements.
LASPPPA determines the first major approval costs
After the required documents are prepared, the developer submits the application for a Planning Permit through the Lagos State Physical Planning Permit Authority (LASPPPA).
LASPPPA screens the application, reviews the submitted drawings and supporting documents, and may conduct a site inspection to determine whether the proposed development complies with planning requirements.
The authority considers factors including zoning, approved land use, building standards, setbacks and other planning requirements before assessing the applicable charges.
Aderohunmu explained that the assessment is not a flat fee and varies according to the location of the property, proposed land use, size or volume of the building and number of floors.
Location is one of the key factors, with Lagos State’s assessment structure divided into four zones with different rates.
Zone 1 covers areas including Eti-Osa, Ikoyi and Victoria Island, while Zone 2 includes areas such as Ikeja, Surulere and Apapa. Zone 3 covers areas including Ikorodu, Alimosho and Agege, while Zone 4 includes areas such as Epe and Badagry.
This means two developers proposing similar buildings can face different approval costs simply because their properties are located in different parts of Lagos.
The intended use of the property also affects the assessment, with residential, commercial, industrial and institutional developments subject to different requirements and charges.
Other components that may form part of the Planning Permit assessment include application and processing fees, building plan or assessment fees, layout and fencing charges, local development levies, Spatial Enhancement Contribution (SEC), LASEMA levy and Infrastructural Development Charge (IDC), depending on the nature and location of the project.
Once the assessment is completed, the developer pays the applicable charges through the designated government channels before the approval can be concluded.
A Planning Permit is then issued where the application meets the required conditions. Where the property title has not yet been registered, a provisional permit may be issued, with the final permit issued after the required title documentation is presented and accepted.
Building size and use affect the final bill
Beyond location, the scale and intended use of a development can significantly influence how much a developer pays for regulatory compliance in Lagos.
Aderohunmu explained that LASPPPA considers the size or volume of the proposed building, its intended use and the number of floors when assessing applicable charges.
- “The four major factors that determine the fees are the location or planning zone, land use, building size or volume, and number of floors,” Aderohunmu told Nairametrics.
This means two buildings in the same area can attract different approval costs depending on what is being built and the scale of the development.
Building volume is calculated from the dimensions of the proposed structure, while taller buildings can attract higher charges and require more extensive technical reviews, inspections and certification.
Land use also matters. Residential developments generally attract different assessments from commercial, industrial and institutional projects, with commercial developments potentially subject to additional charges such as the Infrastructural Development Charge (IDC).
The number of floors can further increase the regulatory burden because taller developments require higher levels of approval and more construction-stage inspections.
For developers, this means the cost of obtaining approval is shaped not just by where a property is located, but by what is being built, how large it is and how high it rises.
Regulatory costs continue during construction
The regulatory cost does not stop once a developer obtains a Planning Permit, as construction itself requires further authorisation, inspections and certification.
Aderohunmu explained that a Planning Permit does not by itself authorise physical construction. Developers must also obtain a Letter of Intent to Commence Construction from the Lagos State Building Control Agency (LASBCA), followed by a Letter of Authorisation to Build after the required site verification and documentation.
The process also requires developers to provide evidence of relevant payments, introduce their consultants and submit approved drawings. For developments of three floors and above, Contractors’ All-Risk Insurance is also required.
Once construction begins, LASBCA carries out inspections at key stages of the project, including setting out and foundation work, lintel and damp-proof course levels, decking or slabs and roofing.
Developers are required to give the agency seven days’ notice before the relevant inspection stages, while materials may also be subjected to testing by the Lagos State Materials Testing Laboratory (LSMTL).
These inspections can create additional costs where work does not conform to approved drawings or building standards. A failed inspection may require corrective work, another site visit and additional professional input before construction can proceed.
Stage certification also forms part of the cost. The Lagos State e-Planning Permit procedure lists stage certification fees at 35% of the Planning Permit processing fee.
The implication is that regulatory compliance becomes an ongoing project expense after the initial approval, with developers paying for inspections, certification, testing and any corrective work required before the building can progress to completion.
Completion brings another layer of compliance
The regulatory obligations continue after construction is substantially completed, as developers must obtain final certification before the building can be legally occupied.
Aderohunmu explained that the completion stage involves a final inspection and submission of documents showing that the development was completed in line with the approved plans and relevant safety requirements.
These may include photographs of all elevations and certifications covering electrical, mechanical, gas and fire safety installations where applicable. Developers may also be required to provide insurance and indemnity documentation.
LASBCA then conducts a final joint inspection before issuing the Certificate of Completion and Fitness for Habitation where the development meets the required standards.
Where the completed building differs from the approved plans, the developer may face additional assessments, revised documentation, regularisation charges or further inspections before the final certificate is issued.
Other requirements can also add to the final bill, including clearances or compliance requirements involving the Lagos State Fire Service, LASEMA, LAWMA and the Lagos State Safety Commission, depending on the nature of the development.
This means a developer’s regulatory budget has to extend beyond obtaining permission to build and cover the process through final inspection and certification for lawful occupation.
Delays can make compliance more expensive
Beyond statutory charges, developers can incur additional costs when approval or construction is delayed.
Aderohunmu said queries raised during application reviews can require revised architectural, structural or mechanical and electrical drawings, additional documents and further work by consultants.
Resubmissions and amendments may also lead to additional assessments, revised professional drawings and further inspections.
The costs can rise further when delays affect construction, as higher material and labour prices, financing costs and additional project management expenses increase the overall cost of the development.
Developers may also face corrective work where construction differs from approved plans. Failed inspections can result in additional materials, labour, professional fees and reinspection costs.
Aderohunmu advised developers to make provision for such unexpected expenses, estimating that a contingency of about 20% to 30% of official approval costs may be required in some cases to cover queries, amendments, additional professional work, inspections and delays.
The estimate is a practitioner’s guide rather than a statutory charge, and the actual cost will depend on the size, complexity and circumstances of each project.
This means the amount paid in official fees may represent only part of what a developer ultimately spends to remain compliant through the construction process.
Lagos building charges have changed since 2020
Building approval and regulatory compliance charges in Lagos have increased significantly since 2020, according to Aderohunmu.
He said the increase has been driven not only by inflation, but also by changes to the approval structure, additional levies, stronger enforcement and expanded digital processing.
“The result is that developers may now encounter a broader range of fees and charges throughout the planning, construction and post-construction stages,” he explained.
One major change has been the separation of planning approval and building control between LASPPPA and LASBCA. While LASPPPA handles Planning Permits and physical planning approval, LASBCA oversees building control, construction-stage monitoring and compliance.
Aderohunmu said the separation has created additional processes and charges, with industry practitioners estimating that the cumulative effect can increase regulatory costs by about 30% in some projects, depending on their size and complexity.
Other changes followed. The Spatial Enhancement Contribution (SEC) was introduced in 2021, while the LASEMA levy became a more formal component of the approval structure in 2022. The Infrastructural Development Charge (IDC) also came under stronger enforcement in 2023.
In 2024, assessment rates increased across the applicable zones, while stage certification charges became more structured. Practitioners estimate these charges at about 35% to 40% of the relevant assessment, depending on the project.
Digital processing also expanded through the e-Planning Permit Processing System (e-PPPS), alongside more distinct screening and processing charges.
Aderohunmu attributed the rising costs to a combination of higher construction costs, increased regulatory enforcement, greater focus on building safety, revenue generation and the separation of regulatory functions.
Despite the changes, the official 28-working-day processing target after final screening and payment remains a key benchmark, although actual timelines can be longer depending on project complexity, queries and required clearances.
Overall, the regulatory system has moved towards more structured inspections, digital processing, stronger enforcement and greater separation between planning approval and building control.
What you should know
The cost of getting a building approved is only one part of the wider challenge facing developers trying to increase housing supply in Lagos.
Lagos’ housing deficit was estimated at about 3.4 million units in 2025, with the state needing an estimated 227,576 new homes annually to keep pace with population growth and replace ageing housing stock.
The funding requirement is also significant. Lagos needs about N6 trillion annually to bridge its housing capital gap, according to a housing and capital market report presented at a GTI Investment Group forum.
Land is another major cost, particularly in prime locations. Victoria Island, for instance, recorded an average land price of N3.05 million per square metre, according to Estate Intel.
Developers must also contend with construction, labour and financing costs, meaning regulatory expenses form part of a broader development cost base.
For residents, this has implications for affordability. Some Lagos households spend between 60% and 70% of their income on rent, according to findings presented at the GTI Investment Group housing forum.
This makes the cost of delivering housing an important consideration for both developers and policymakers as Lagos seeks to increase supply while maintaining the planning, safety and building standards required for new developments.
