Last year a developer in Akoka, Yaba, began blockwork three weeks after receiving a Lagos State Physical Planning Permit Authority (LASPPPA) Planning Permit. Officials from the Lagos State Building Control Agency (LASBCA) arrived and sealed the site because he lacked a Letter of Authorisation to Build and the required green sticker. Construction stopped, workers stood idle and bank interest continued to accumulate.
Town planner TPL. Niyi Aderohunmu, co-founder and director of Goania Project Ltd., shared the case with Nairametrics while outlining the stages and costs developers face from planning approval to completion. The developer had assumed a Planning Permit was sufficient to start work. Aderohunmu said the episode illustrates how easily developers can confuse planning approval with building control.
In Lagos, regulatory and approval costs can extend well beyond the initial permit. Industry practitioners estimate that, for some projects, these expenses are approaching 30 per cent of the total cost of running a building development. Rather than a single charge, the costs build up across professional documentation, planning approval, construction inspections and final certification.
What Practitioners Say
Bright Okereke, co-founder and president of Flinx Holding Co., said regulatory costs have become a major part of development budgets. “These costs are now getting closer to 30% of the total cost of running a building project,” he said.
Engr. Habeeb Odusanya of Fort Construction Ltd. argued that the problem is larger than the fees themselves. “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, chief executive of Elara Development, acknowledged progress in Lagos’s approval processes but said greater predictability is still needed. “Certainty is extremely important in development because delays ultimately translate into additional costs,” he said.
Aderohunmu stressed that building approval is not a one-off payment to a single agency. It is a continuing regulatory process whose requirements and costs depend on location, proposed use, building size or volume and number of floors. Professional fees, testing, inspections, insurance, amendments and delays can all add to the burden. “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.
He outlined five broad stages: pre-application documentation, Planning Permit approval, construction authorisation, stage inspections and final certification.
Costs Begin Before the Application
Regulatory spending starts before a Planning Permit application is even filed. Developers must engage relevant professionals typically a town planner, architect, quantity surveyor, builder, and structural, mechanical and electrical engineers and prepare technical and legal documents. These include proof of land ownership, a survey plan, architectural and engineering drawings, soil test reports and other supporting materials. Larger or more complex projects may also require a Land Use Planning Analysis Report and an Environmental Impact Assessment.
Significant professional and technical costs can therefore be incurred before LASPPPA assesses statutory charges.
LASPPPA Sets the First Major Charges
Once documentation is ready, the application is submitted to LASPPPA. The authority screens the file, reviews drawings and supporting documents, and may inspect the site. It considers zoning, approved land use, building standards, setbacks and other planning rules before assessing charges.
The assessment is not a flat fee. It varies by location, land use, building size or volume and number of floors. Lagos is divided into four assessment zones with different rates: Zone 1 (including Eti-Osa, Ikoyi and Victoria Island), Zone 2 (Ikeja, Surulere and Apapa), Zone 3 (Ikorodu, Alimosho and Agege) and Zone 4 (Epe and Badagry). Two similar buildings can therefore attract different costs simply because of their location.
Intended use also matters: residential, commercial, industrial and institutional projects face different requirements. Components of the assessment can include application and processing fees, building-plan charges, layout and fencing fees, local development levies, the Spatial Enhancement Contribution, the LASEMA levy and the Infrastructural Development Charge, depending on the project.
After payment through designated channels, a Planning Permit is issued if conditions are met. Where title is not yet registered, a provisional permit may be granted pending final documentation.
Aderohunmu summarised the main determinants: “The four major factors that determine the fees are the location or planning zone, land use, building size or volume, and number of floors.” Taller buildings generally attract higher charges and more intensive technical review.
Costs Continue Through Construction
A Planning Permit does not by itself authorise physical construction. Developers must obtain a Letter of Intent to Commence Construction from LASBCA, followed by a Letter of Authorisation to Build after site verification and submission of required documents, including evidence of payments, consultant details and approved drawings. Projects of three floors and above also require Contractors’ All-Risk Insurance.
LASBCA inspects at key stages setting out and foundation, lintel and damp-proof course, decking or slabs, and roofing. Developers must give seven days’ notice before each stage, and materials may be tested by the Lagos State Materials Testing Laboratory. Failed inspections can force corrective work, additional site visits and further professional fees before construction can resume.
Stage certification fees are listed in the e-Planning Permit procedure at about 35 per cent of the Planning Permit processing fee. Regulatory compliance therefore remains an ongoing project expense after the initial approval.
Final Certification and Extra Clearances
Once construction is substantially complete, developers must secure final certification before the building can be legally occupied. This involves a final inspection and submission of documents showing the development matches approved plans and meets safety requirements, including photographs of elevations and certifications for electrical, mechanical, gas and fire installations where applicable. Insurance and indemnity documents may also be required.
LASBCA conducts a joint final inspection before issuing the Certificate of Completion and Fitness for Habitation if standards are met. Deviations from approved plans can trigger additional assessments, revised documentation, regularisation charges or further inspections. Clearances from the Lagos State Fire Service, LASEMA, LAWMA or the Lagos State Safety Commission may also be needed, depending on the project.
Delays Raise the Bill Further
Queries during reviews can require revised architectural, structural or mechanical and electrical drawings, extra documents and more consultant work. Resubmissions may lead to further assessments and inspections. Construction delays can push up material, labour, financing and project-management costs. Failed inspections can demand additional materials, labour and reinspection fees.
Aderohunmu advises developers to budget a contingency of roughly 20 to 30 per cent of official approval costs to cover queries, amendments, extra professional work, inspections and delays. The figure is a practical guide, not a statutory charge, and actual costs depend on each project’s size and complexity. Official fees alone therefore often represent only part of what developers ultimately spend to stay compliant.
How the System Has Changed Since 2020
Building approval and compliance charges in Lagos have risen significantly since 2020, Aderohunmu said. The increase reflects inflation as well as 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.
A major shift has been the separation of planning approval (LASPPPA) from building control (LASBCA). Practitioners estimate that the cumulative effect of this separation can raise regulatory costs by about 30 per cent on some projects. Other changes include the introduction of the Spatial Enhancement Contribution in 2021, formalisation of the LASEMA levy in 2022, stronger enforcement of the Infrastructural Development Charge in 2023, higher assessment rates in 2024 and more structured stage-certification charges (estimated at 35 to 40 per cent of the relevant assessment). Digital processing has expanded through the e-Planning Permit Processing System.
The official target remains 28 working days after final screening and payment, although actual timelines often lengthen with project complexity, queries and additional clearances.
Broader Housing Context
Regulatory costs form only one part of the challenge facing developers trying to expand housing supply in Lagos. The state’s housing deficit was estimated at about 3.4 million units in 2025, with an annual need of roughly 227,576 new homes to keep pace with population growth and replace ageing stock. Bridging the housing capital gap is estimated to require about N6 trillion a year, according to a report presented at a GTI Investment Group forum.
Land is another major expense, especially in prime areas. Victoria Island, for example, recorded an average land price of N3.05 million per square metre, according to Estate Intel. Developers must also absorb construction, labour and financing costs. For residents, the cumulative effect shows up in affordability: some Lagos households spend between 60 and 70 per cent of their income on rent, findings presented at the same GTI forum indicated.
As Lagos seeks to increase housing supply while maintaining planning, safety and building standards, the rising weight of regulatory costs remains a central concern for both developers and policymakers.
