Lagos, April 10, 2026 (NAN) A real estate developer, Mr Ayotunde Bally, has expressed concerns that introduction of electronic physical planning permit processing by Lagos State Government will increase costs and lead to multiple taxation.
The construction professional expressed the concerns in an interview with the News Agency of Nigeria (NAN) on Friday in Lagos.
Bally said that the shift to a fully digital system had removed flexibility and management of costs and timelines by developers.
He said that introduction of the system had led to stricter and more rigid fee structures, raising concerns within the sector.
The developer said that additional 35 per cent of assessment fees was being required at the approval stage, and developers were compelled to pay it before proceeding.
He expressed worry that operational costs of the system could be passed on to developers, while access to centralized data might lead to new levies.
Bally also expressed worry that developers could face demands from local government agencies after paying state-level fees.
He said that the situation could create duplication and uncertainty.
Bally, however, described the initiative as a welcome development, saying that it would offer significant benefits to the state government.
He listed the benefits to include improved revenue generation, reduced leakages, and stronger compliance monitoring.
He added that it would create a structured base for expanding taxation within the real estate sector.
“For developers, the advantages include reduced physical interaction, improved transparency in application tracking, and more standardized approval processes,” he said.
He urged the state government to harmonize all fees across state and local government levels, eliminate duplication, and clearly define revenue collection roles.
Bally also called for sanctions against unauthorized collections, as well as protection for compliant developers.
He said that developers were critical partners in addressing housing deficit and should be supported through favorable policies.
According to him, rising approval costs could be transferred to home buyers and negatively affect affordability.
Bally said that the digitization of the permit process was commendable but must be matched with fair pricing and proper regulatory alignment to avoid constraining development.
The Electronic Physical Planning Permit Processing System, a digital platform designed to simplify and modernize physical planning permit application process in Lagos State, was launched by Gov. Babajide Sanwo-Olu in March. (NAN)
