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Home Sectors Real Estate and Construction

Why we keep building permit fee high in Lagos – Sanwo-Olu  

Cyrus Ademola by Cyrus Ademola
October 31, 2024
in Real Estate and Construction, Sectors, Spotlight
Lagos plans N500 entertainment tax, eyes N20 billion annual revenue 
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The Lagos State Governor, Babajide Sanwo-Olu, has addressed concerns about the high cost of building permits, stating it is a measure to reduce bribery and curb abuse in the construction approval process.

Sanwo-Olu made this statement on Wednesday at the ongoing Chartered Institute of Directors (CIoD) conference in Lagos.

The conference, themed “Good Governance as a Catalyst for Economic Recovery, Growth, and Development,” focused on the impact of governance on Nigeria’s economic growth.

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The governor emphasized the need to discourage practices where individuals bribe officials to secure approvals for buildings higher than what is legally permitted.

Sanwo-Olu explained that by paying a cost-reflective fee for permits, developers are less likely to offer bribes to inspectors, having already invested significantly in obtaining proper approvals.

“We have launched reforms to straighten our institutions, promote transparency and ensure that accountability cuts across all sectors in our state. Are their bad eggs? Yes. Are there people that continue to give us unfavourable names? Yes.  

“For instance, somebody could go on a construction sight and the person could ask for a bribe, My question is why would you bribe the person because they want to come and inspect a property that you’re constructing just for the officers to know that you sought approval for 3 floors. You’re not planning to do 7 floors. But when the officer comes to the site and he realizes that you have overbuilt, then you think the next thing is to compromise that officer. 

“So when I get requests that people say that the fee that I’m asking for is very high, I said yes,  the fees are high because I don’t want you to have paid that high fee have any money to bribe anybody.  

“What will happen is that if you have paid the right fee that is so much, when that officer comes and wants to charge anything, not only will you come out very hard on him, you let him know you have nothing else to give him. So one of the things you will have asked him, is has the governor not provided you the fee to bring you here? Has he not given you the right allowance?” Sanwo-Olu said.

What you should know 

The persistent issue of building collapse in Lagos continues to raise alarm within the construction industry.

  • According to the Council for the Regulation of Engineering in Nigeria, the city has witnessed at least 90 building collapses over the past 12 years, resulting in over 350 fatalities.
  • The most recent incident occurred approximately two weeks ago when a two-storey building on Amusu Street in the Orile Iganmu area collapsed.

These incidents are often attributed to foundational faults and permit violations, with some developers constructing beyond their approved height limits.


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Tags: Babajide SanwooluBuilding permit feeChartered Institute of Directors
Cyrus Ademola

Cyrus Ademola

  • Cyrus Ademola is an energy and economy analyst with over half a decade experience in journalism, research-based oped, economic reportage and energy analysis. His works have been featured on different media outlets, covering from oil and gas to business trends.

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