Dealing with Construction Permits in Nigeria

The table below summarizes the procedures, time, and costs to build a warehouse in Nigeria.

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Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: USD 443,000
City: Lagos

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Obtain Environmental Impact Assessment Report 7 days NGN 35,000
2 Obtain Development Permit from the District Office 42 days NGN 494,216
3 Pay Development Levy to the Local Planning Authority 1 day NGN 49,422
4 Pay Spatial Enhancement Contribution to the Lagos State Urban & Regional Planning Board in bank draft 1 day NGN 95,000
5 Obtain Certificate of Structural Stability of foundation from an accredited construction testing company 2 days NGN 5,000
6 Obtain Certificate of Structural Stability (first pouring of concrete) 2 days NGN 5,000
7 Obtain Certificate of Structural Stability (second pouring of concrete) 2 days NGN 5,000
8 Obtain Certificate of Structural Stability (third pouring of concrete) 2 days NGN 5,000
9 Receive inspection during construction from State Government Task Force reporting to the Commissioners for Land and Urban Development 1 day no charge
10 Receive inspection during construction from Local Monitoring Team reporting to the District Office 1 day no charge
11 Receive inspection during construction from Zonal Monitoring Team 1 day no charge
12 Request and receive inspection by Fire Department 1 day no charge
13 Obtain Certificate of Completion and Fitness for Habitation 14 days no charge
*14 Obtain fixed phone line 180 days NGN 4,725
*15 Apply for electricity connection 1 day no charge
16 Receive inspection by electrical provider 1 day no charge
17 Obtain electricity connection 270 days NGN 50,000
*18 Dig borehole to obtain water 7 days NGN 138,000
* Takes place simultaneously with another procedure.

Requirement Details

Procedure 1.
Obtain Environmental Impact Assessment Report
Time to complete:
7 days
Cost to complete:
NGN 35,000
Name of Agency:
Town Planner
Comment:
It usually takes 4 days for the Town Planner to issue the Environmental Impact Assessment Report. The fee varies between NGN 20,000 and NGN 50,000.
Procedure 2.
Obtain Development Permit from the District Office
Time to complete:
42 days
Cost to complete:
NGN 494,216
Name of Agency:
District Office
Comment:
The development permit authorizes construction and is valid for 2 years. Several documents are required to obtain this permit, including all the documents, clearances, and approvals required or obtained in the previous procedures

Legally, a pre-approval inspection is required. Other inspections include one by the Environmental Protection Agency, and another structural inspection carried out by the Local Planning Authority during construction. In practice however, none of these inspections usually takes place.
Procedure 3.
Pay Development Levy to the Local Planning Authority
Time to complete:
1 day
Cost to complete:
NGN 49,422
Name of Agency:
Local Planning Authority
Comment:
The Local Planning Authority (LPA) charges a contribution levy (10% of the building permit cost) for the preparation and production of development plans, such as local, district, subject, and action plans; development guides; office maintenance; procurement and maintenance of vehicles; office equipment; and similar issues.
Procedure 4.
Pay Spatial Enhancement Contribution to the Lagos State Urban & Regional Planning Board in bank draft
Time to complete:
1 day
Cost to complete:
NGN 95,000
Name of Agency:
Lagos State Urban and Regional Planning Board
Comment:
Procedure 5.
Obtain Certificate of Structural Stability of foundation from an accredited construction testing company
Time to complete:
2 days
Cost to complete:
NGN 5,000
Name of Agency:
Accredited Construction Testing Company
Comment:
Procedure 6.
Obtain Certificate of Structural Stability (first pouring of concrete)
Time to complete:
2 days
Cost to complete:
NGN 5,000
Name of Agency:
Accredited Construction Testing Company
Comment:
Procedure 7.
Obtain Certificate of Structural Stability (second pouring of concrete)
Time to complete:
2 days
Cost to complete:
NGN 5,000
Name of Agency:
Accredited Construction Testing Company
Comment:
Procedure 8.
Obtain Certificate of Structural Stability (third pouring of concrete)
Time to complete:
2 days
Cost to complete:
NGN 5,000
Name of Agency:
Accredited Construction Testing Company
Comment:
Procedure 9.
Receive inspection during construction from State Government Task Force reporting to the Commissioners for Land and Urban Development
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
State Government Task Force
Comment:
Procedure 10.
Receive inspection during construction from Local Monitoring Team reporting to the District Office
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Local Monitoring Team
Comment:
Procedure 11.
Receive inspection during construction from Zonal Monitoring Team
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Zonal Monitoring Team
Comment:
Procedure 12.
Request and receive inspection by Fire Department
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Fire Department
Comment:
This certificate is to be obtained at the local planning authority before the building can be used. It is within the discretion of the authority to conduct an on-site inspection before issuing the certificate. However, such an inspection, normally about 45 minutes, is very rarely performed.
Procedure 13.
Obtain Certificate of Completion and Fitness for Habitation
Time to complete:
14 days
Cost to complete:
no charge
Name of Agency:
Comment:
Procedure 14.
Obtain fixed phone line
Time to complete:
180 days
Cost to complete:
NGN 4,725
Name of Agency:
Local Planning Authority
Comment:
The estimated completion time is 180 days for a cable terrestrial line. It would be possible to obtain a wireless line in 2–3 days
Procedure 15.
Apply for electricity connection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Power Holding Company of Nigeria (PHCN)
Comment:
To obtain an electricity connection, BuildCo needs to file the appropriate forms at the branch offices of the Power Holding Company of Nigeria, PHCN (previously NEPA), and make a payment of NGN 40,000. The PHCN will then install an electric power meter at the premises. The premises are then connected to the power network.
Procedure 16.
Receive inspection by electrical provider
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Power Holding Company of Nigeria (PHCN)
Comment:
Procedure 17.
Obtain electricity connection
Time to complete:
270 days
Cost to complete:
NGN 50,000
Name of Agency:
Power Holding Company of Nigeria (PHCN)
Comment:
Procedure 18.
Dig borehole to obtain water
Time to complete:
7 days
Cost to complete:
NGN 138,000
Name of Agency:
Comment:
The cost breakdown to dig the bore hole is the following: Equipment Rental: NGN 15,000; steel casing: NGN 20,000; transportation: NGN 10,000; riser pipe: NGN 5,000; safety sipe: NGN 3,000; renting pumping machine: NGN 7,000 (NGN 1,000 per day); chemicals: NGN 3,000; labor: NGN 60,000; geophysics test: NGN 15,000. The total is NGN 138,000.