Fashola urges Lagos to streamline building approval process

A former Minister of Works and Housing, Mr Babatunde Fashola, has urged the state government to streamline the process for obtaining development and building approvals.

Fashola gave the advice at the 2024 Lagos Physical Planning Summit on Tuesday.

He argued that the current system, which could take up to two years, was deterring investors and hindering economic growth.

Fashola said, “So, I want to remind us that there were previous commitments made in this state to improve the process of the issuance of development and building approvals.

“Now, a process that takes two years to respond to an investor’s request for planning approval is sending that investor away.

So, as I said, the way one state lost an investor, we will loose investors if we don’t deal with this.

“Especially in a period of price volatility, if the investor cannot get his approval within a number of weeks, and his price changes once beaten twice shy, so we must remind ourselves.”

He also advocated for fair and reasonable fees for processing building approvals, arguing that the focus should be on providing a service rather than generating revenue.

“We must remind ourselves also that payment for processing request for building approvals must be reasonable administrative costs.

“But, the reason I say that is not to deprive the state of any revenue. It is in fact, to multiply the state’s revenue and let me tell you why.

“Payments for planning approval must not be seen as revenue: they are not sustainable. It’s a one off.

“But, the service that government offers to those who are able to build must not leave a hole in the pocket of government. That’s why I say reasonable administrative cost to cover the provision of the service,” he said.

Fashola explained that the real revenue for the government was from the construction of buildings and the subsequent economic activity generated by them, such as land use charges, property taxes, and Value Added Tax.

He emphasised the importance of using technology to streamline the approval process and reduce bureaucracy.

“If we must maximise the possibilities of this potential revenues, apart from moderating costs, we must now streamline the number of agencies that an applicant must go through because this is deliberate, strategic ease of doing business, initiative, reduce the number of agencies, compress them and use technology.

“The more complex the process, the more expensive it becomes, and the cost then makes it less attractive to business and they might go somewhere else,” he stressed.

The Lagos State Governor, Mr Babajide Sanwo-Olu, acknowledged the need for a reform and emphasised the importance of a more efficient and investor-friendly approach.

Sanwo-Olu encouraged town planners to think creatively and adopt best practices to improve the approval process.

He reaffirmed the government’s commitment to creating a business-friendly environment and avoiding policies that discourage investment.

The governor acknowledged the importance of land use charge as a sustainable source of revenue but emphasised the need to balance this to attract investors.

The highlight of the programme was the unveiling of the Lagos State Physical Planning Permit Smart tag by the governor.

It was reported that the two-day programme has, ”Rethinking Lagos: A New Vision for a Regional and Integrated Megacity,” as its theme.