How is Nigeria Fairing: Dealing with Construction Permits

How is Nigeria Fairing: Dealing with Construction Permit
Over the past four years, there has been no significant improvement when it comes to dealing with construction permits in Nigeria. In an earlier article, we analysed the improvements over the past 10 years in starting a business in Nigeria. This article looks to identify the improvements in dealing with construction permits in the country.
The complexity and cost of regulatory processes in dealing with construction permits is also a key criterion that entrepreneurs consider in making investment decisions. Jigawa State, a North Western state, provides the best platform (i.e. ranks first) in dealing with construction permits in Nigeria.
Lagos State, a South Western state, is the most difficult place to deal with construction permits in Nigeria (ranks 36th, requires 18 procedures that may be completed within 106 days, and could cost 53,504.9 per cent of the per capita income).
Below is a detailed summary of the procedures, time and costs to build a warehouse in Nigeria, using Lagos as a case study. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.

Procedures (Lagos)

The World Bank report 2017 indicated that about 16 procedures are required when dealing with construction permits in Nigeria, using Lagos as a case study. There has been no reduction in the number of procedures involved over the past three years.
No.
Procedures
Agency
1.
Obtain soil investigation report
Private Company
*2.
Obtain sworn affidavit for search at the Commissioner of Oaths
High Court of Justice
*3.
Obtain an Environmental Technical Analysis Report
Town Planner Engineer
*4.
Obtain a certified true copy (CTC) of the survey plan and CTC of the land ownership title
Land Registry
5.
Obtain development permit from the Lagos State Physical Planning Permit Authority (LASPPPA)
State Physical Planning Permit Authority (LASPPPA)
6.
Hire a private engineer to conduct inspections
Private Company
7.
Obtain certificate of structural stability (first pouring of concrete)
Lagos State Material Testing Laboratory
8.
Obtain certificate of structural stability (second pouring of concrete)
Lagos State Material Testing Laboratory
9.
Obtain certificate of structural stability (third pouring of concrete)
Lagos State Material Testing Laboratory
10.
Obtain certificate of structural stability of foundation
Lagos State Material Testing Laboratory
11.
Receive joint inspection during construction from the Building Control Agency and the Zonal Agency
Building Control Agency and Zonal Agency
12.
Receive inspections during construction from the Building Control Agency
Lagos State Building Control Agency
13.
Request and receive inspection by the Fire Department
Fire Department
14.
Submit report of supervision by private engineer to request and obtain the certificate of completion and fitness
Lagos State Building Control Agency
*15.
Submit application for water connection to Lagos Water Company
Zonal Office
16.
Pay the connection bill and submit evidence of payment to Zonal Office
Zonal Office
17.
Receive water connection
Zonal Office

 Significant Reduction in cost involved when dealing with construction permits

Cost

There has been a significant reduction in the cost involved when dealing with construction permits in Nigeria over the past five years.
No.
Procedures
Cost
1.
Obtain soil investigation report
NGN 100,000
*2.
Obtain sworn affidavit for search at the Commissioner of Oaths
NGN 250
*3.
Obtain an Environmental Technical Analysis Report
NGN 150,000
*4.
Obtain a certified true copy (CTC) of the survey plan and CTC of the land ownership title
NGN 7,500
5.
Obtain development permit from the Lagos State Physical Planning Permit Authority (LASPPPA)
NGN 7,100,616
6.
Hire a private engineer to conduct inspections
NGN 126,309
7.
Obtain certificate of structural stability (first pouring of concrete)
NGN 35,000
8.
Obtain certificate of structural stability (second pouring of concrete)
no charge
9.
Obtain certificate of structural stability (third pouring of concrete)
no charge
10.
Obtain certificate of structural stability of foundation
no charge
11.
Receive joint inspection during construction from the Building Control Agency and the Zonal Agency
no charge
12.
Receive inspections during construction from the Building Control Agency
no charge
13.
Request and receive inspection by the Fire Department
no charge
14.
Submit report of supervision by private engineer to request and obtain the certificate of completion and fitness
no charge
*15.
Submit application for water connection to Lagos Water Company
no charge
16.
Pay the connection bill and submit evidence of payment to Zonal Office
NGN 50,000
17.
Receive water connection
no charge

No Reduction in Time

Time

There has been no improvement in the time it takes to deal with construction permits in Nigeria. According to the World Bank Doing Business index 2017, it takes approximately 116 days to complete all the necessary procedures when dealing with construction permit in Nigeria. This has been the same over the past four years.
No.
Procedures
Time to Complete
1.
Obtain soil investigation report
14 days
*2.
Obtain sworn affidavit for search at the Commissioner of Oaths
1 day
*3.
Obtain an Environmental Technical Analysis Report
7 days
*4.
Obtain a certified true copy (CTC) of the survey plan and CTC of the land ownership title
3 days
5.
Obtain development permit from the Lagos State Physical Planning Permit Authority (LASPPPA)
42 days
6.
Hire a private engineer to conduct inspections
1 day
7.
Obtain certificate of structural stability (first pouring of concrete)
7 days
8.
Obtain certificate of structural stability (second pouring of concrete)
7 days
9.
Obtain certificate of structural stability (third pouring of concrete)
7 days
10.
Obtain certificate of structural stability of foundation
7 days
11.
Receive joint inspection during construction from the Building Control Agency and the Zonal Agency
1 day
12.
Receive inspections during construction from the Building Control Agency
1 day
13.
Request and receive inspection by the Fire Department
1 day
14.
Submit report of supervision by private engineer to request and obtain the certificate of completion and fitness
14 days
*15.
Submit application for water connection to Lagos Water Company
1 day
16.
Pay the connection bill and submit evidence of payment to Zonal Office
1 day
17.
Receive water connection
13 days

Some Strategic Policy Reforms (Lagos)

E-planning platform: Operationalized electronic planning platform (www.lagosepp.com.ng) through which applications for construction permits can be made and tracked, fees can be paid and architectural designs uploaded.
Clarity on EIA and Soil Test: Environmental Impact Assessment (EIA) is now required for only construction works with potentially heavy impact on the environment. Soil Investigation Report is only required for four-storey buildings and above, except in cases of construction in marshy or swampy areas.
Clear timelines: Timelines for obtaining permits have now been uploaded on the Lagos State Physical Planning and Permit Authority (LASPPPA) e-planning platform
Fees published online: Published breakdown of formulas and rates for fees on the LASPPPA e-planning platform to prevent arbitrariness and enhance transparency.

Qualification laws published online: Published all laws concerning qualification of professionals (Town Planners, Engineers & Architects) involved in construction on e-planning platform
Procedures and Laws published online: Published all laws and procedures concerning dealing with construction permits on the e-planning platform to enhance transparency.

The Presidential Enabling Business Environment Council (“PEBEC”) is the body tasked with the responsibility of developing and driving these reforms. Its Chairman Vice President, Prof Yemi Osinbajo, SAN  has promised to introduce more far reaching reforms that will catapult Nigeria as the leading investment destination in Africa.

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2 responses to “How is Nigeria Fairing: Dealing with Construction Permits”

  1. Cocreatit says:

    Thank you Danypack7. We are committed to making data available for startups, entrepreneurs and investors in Nigeria. ‘How is Nigeria Fairing’ is a weekly publication, keep visiting Cocreatit for more updates.

  2. danypack7 says:

    I love this article/report. The writer did his or her homework well. Looking forward to seeing more like this.

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