#

Dealing with Construction Permits in

Nigeria - Lagos

Below is a detailed summary of the procedures, time and costs to build a warehouse in Nigeria - Lagos. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016. Read the methodology.

Compare Nigeria - Lagos to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain soil investigation report

    Agency: Private Company

    A soil investigation report is done by an expert for the stability of the foundation. While according to Law No 3 (implemented in August 2012), only 3-storey (or more) residential or office buildings would need such a report, it would also be needed for a commercial warehouse. Furthermore, depending on the location, sometimes a 2-storey building might require a soil analysis report.

    14 days NGN 100,000
    * 2

    Obtain sworn affidavit for search at the Commissioner of Oaths

    Agency: High Court of Justice

    Before someone can carry out a search at the Land Registry, an affidavit must be first sworn and filed at the High Court. If the affidavit is registered before noon, then the lawyer will be able to proceed with the search. Otherwise, it will be done on the following day.

    1 day NGN 250
    * 3

    Obtain an Environmental Technical Analysis Report

    Agency: Town Planner Engineer

    The Ministry of Environment reviews the environmental impact assessment report. This report is needed to check whether this project is viable and the impact it will have on the immediate environment. All projects require this report, regardless of usage or height.

    7 days NGN 150,000
    * 4

    Obtain a certified true copy (CTC) of the survey plan and CTC of the land ownership title

    Agency: Land Registry

    A certified true copy of the survey plan must be obtained from the Land Registry to show the plot and its coordinates. Proof of ownership must also be obtained; otherwise the permit application will not be accepted. The sworn affidavit obtained previously must be presented to obtain the documents.

    But if the land has not been surveyed, then a private surveyor would have to conduct the survey of the plot of land and this survey would have to be registered with the Surveyor’s General Office. In that case, the survey would be verified against the master plan of Lagos. The black copy will be for BuildCo, the red copy will be registered with the Land Registry and a third copy will be kept at the Surveyor General Office. The cost of survey by a private surveyor can range from NGN 50,000 to NGN 100,000.

    3 days NGN 7,500
    5

    Obtain development permit from the Lagos State Physical Planning Permit Authority (LASPPPA)

    Agency: State Physical Planning Permit Authority (LASPPPA)

    The development permit authorizes construction and is valid for 2 years. To obtain this permit, a building development plan portraying the intended uses and the proposed development on the site and the effect on adjacent developments and neighborhood must be prepared by a professional.

    Legally, a pre-approval inspection is required to verify that the land is located where the owner has stated it is and to verify that construction has not already started. BuildCo does not have to be present during the visit. An assessment of the amount to be paid will be written after that visit. All the necessary banking accounts where each payment for each tax must be made must be listed on this letter of assessment.

    For construction involving a structure of more than two floors, the developer or owner must submit a general contractors all-risk insurance policy certificate to the Building Control Agency along with the application to commence building work.

    The Lagos State Physical Planning Authority 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.

    The following documents must be presented:
    • Proof of ownership
    • Survey Plan – on Sun Print paper
    • 5 sets of architectural drawings
    • 5 sets of structural drawings (calculation sheets and supervision letter from a registered engineer)
    • 5 sets of mechanical and electrical drawings
    • 5 sets of sanitary and plumbing drawings
    • Current Income tax Clearance Certificate (CIT)
    • Photocopy of payment of assessment fee
    • Certificate of incorporation of the company
    • Environmental Technical Analysis Report

    The following is a breakdown of the costs to be paid:
    Assessment fees (formula is Volume of the building X NGN 120) = 3901.6 m3 x NGN 120
    Local Planning Office Levy: 10% of assessment fees
    Spatial Enhancement Contribution: 12% of the Local Planning Office Levy
    Application form of NGN 5000
    Cost of Certificate of Fitness for Habitation: NGN 60,000
    Fencing NGN 12 000
    Infrastructure Development Charge (IDC) : 1300.6 X NGN 5000)

    42 days NGN 7,100,616
    6

    Hire a private engineer to conduct inspections

    Agency: Private Company

    A private engineer must be hired to conduct the inspections during construction phase. According to the Doing Business methodology, BuildCo has an engineer that prepares all the plans. However, this engineer cannot conduct the inspections as well, so an external engineer must be hired.

    1 day NGN 126,309
    7

    Obtain certificate of structural stability (first pouring of concrete)

    Agency: Lagos State Material Testing Laboratory

    The concrete crushing test is done as follows:
    1. A sample from a block of concrete is taken and brought back to the laboratory for testing. At this stage BuildCo pays for the entire testing. The testing is done at several stages:
    2. 7 days after the sample is taken, the first result is obtained.
    3. 14 days after the sample is taken, the second result is obtained (7 days after the first result).
    4. 21 days after the sample is taken, the third result is obtained (7 days after the second result is delivered).
    5. 28 days later the last and final result is obtained, as well as the final report.
    Normally the longer the concrete is kept, the harder it will become and therefore it will have a better resistance to the crushing test.

    All payment for concrete testing is done once in this procedure.

    7 days NGN 35,000
    8

    Obtain certificate of structural stability (second pouring of concrete)

    Agency: Lagos State Material Testing Laboratory

    7 days no charge
    9

    Obtain certificate of structural stability (third pouring of concrete)

    Agency: Lagos State Material Testing Laboratory

    7 days no charge
    10

    Obtain certificate of structural stability of foundation

    Agency: Lagos State Material Testing Laboratory

    7 days no charge
    11

    Receive joint inspection during construction from the Building Control Agency and the Zonal Agency

    Agency: Building Control Agency and Zonal Agency

    1 day no charge
    12

    Receive inspections during construction from the Building Control Agency 

    Agency: Lagos State Building Control Agency

    The Lagos State Urban and Regional Planning and Development Law from July 2010 gives the Building Control Agency the power to carry out inspection(s) of building construction, when necessary.

    1 day no charge
    13

    Request and receive inspection by the Fire Department

    Agency: Fire Department

    This certificate must 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, which normally takes about 45 minutes, is rarely performed.

    1 day no charge
    14

    Submit report of supervision by private engineer to request and obtain the certificate of completion and fitness

    Agency: Lagos State Building Control Agency

    14 days no charge
    * 15

    Submit application for water connection to Lagos Water Company 

    Agency: Zonal Office

    BuildCo collects the LWC Water Connection Form ("WCF") from the nearest Zonal Office ("ZO"). There are 31 zones in Lagos. The Completed WCF is submitted to ZO and ZO sends a Site Inspection Officer ("SIO") to the customer's property.
    • SIO confirms address and locational details of BuildCo's property. SIO also establishes an optimal size and length of connection pipes, and optimal connection materials.
    • SIO prepares comprehensive Site Report ("SR") including estimates of total connection costs, and submits SR to the ZO.
    • ZO prepares connection bill to customer.

    1 day no charge
    16

    Pay the connection bill and submit evidence of payment to Zonal Office

    Agency: Zonal Office

    1 day NGN 50,000
    17

    Receive water connection

    Agency: Zonal Office

    Once payment has been made, the Zonal Office (ZO) procures the connection materials and carries out the connection works.

    13 days no charge

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 6.5
    Quality of building regulations index (0-2) 0.5
    How accessible are building laws and regulations in your economy? (0-1) Free of charge; Not easily accessible. 0.5
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Required preapprovals. 0.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by external engineer or firm; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, external engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 0.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  No party is held liable under the law. 0.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 0.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Being a registered architect or engineer. 0.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Being a registered architect or engineer. 0.0