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.
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.
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.
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.
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.
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.
Aderohunmu outlined the process in five broad stages: pre-application documentation, Planning Permit approval, construction authorisation, stage inspections and final certification.
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.
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.
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.
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.
