Regularisation of Property, Documentation Reviewed Upward By Lagos State

Lagos State government has surreptitiously increased fees charged for property/land regularisation and other documentation from 25 per cent of the fair market value of such property to over 100 per cent in some cases.

The National President of the Nigerian Institute of Building, Bldr. Kunle Awobodu has appealed to the Lagos State Governor, Mr. Babajide Sanwo-Olu to be more considerate in the imposition of these charges/fees/rates so as not to stifle the real estate market.

“The Lagos State government is trying to increase their internally generated revenue (IGR). They should understand that the post-COVID economy is in quagmire, not buoyant. So, this is not the time to double taxes or charges, I mean not the time to increase those fees astronomically.

This, he said was because people were just trying to recover from losses created by COVID-19 and #EndSars protests. There is property glut right now, because of weak purchasing power of most people.”

He said not many people are developing buildings right now and that the few that are doing so should be encouraged. “The astronomical increase of these charges will affect the real estate market adversely.

“So, we appeal to the governor to allow the economy to stabilise and the charges should be minimal. We understand that the government needs a strong IGR to provide social amenities, but they should be guided by the poor economy,” he said.

There is demand for the buildings being constructed but people cannot purchase them for lack of funds and developers would be unable to pay back loans to lenders if they are unable to sell, he said.

Meanwhile, there is no uproar yet unlike when it increased the Land Use Charge, because it targets a small group of people who must do the mandatory property regularisation/documentation, according to investors, who said they purchased land in Ikoyi, Victoria Island, Lekki and elsewhere that they needed to document.