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Fashola Stops Building Of New Houses In Lagos by Oboma1(m): 10:31am On Dec 21, 2009
Lagos’ housing crisis deepens as land charges frustrate new building projects
MONDAY, 21 DECEMBER 2009 01:23 CHUKA UROKO   


Developers suspend building of new houses

More Lagos residents may remain either without homes they can call their own or in less befitting ones as what is seen as excessive land charges by the state government continue to frustrate housing development efforts by private developers in the state. Due to the high value land commands in the state, government has evolved numerous measures to regulate access to it, making the process of land acquisition cumbersome and convoluted. In recent times, there has been massive investment in infrastructure, planning; utilities, etc in the state’s pursuant of its dream of becoming a mega city by 2015. Presently, the state is the economic hub of the West African sub-region. As the state needs a huge cash outlay to fund the projects, it has raised its land charges to a point where many developers who can no longer afford it or do not see the wisdom in ‘wasting’ such huge amount, have decided to put their projects on hold. According to Charles Okoye, managing director of UBN Properties, the cost of property development in Lagos is the highest in the country. “Cost of property development in Lagos is getting higher and higher, not because of the cost of building materials or labour, but because of the cost of land”, Okoye told BusinessDay. He disclosed that to get the plan approval for a piece of land his company bought at Lekki Phase 1, Lagos demanded N16 million after which he was referred to New Town Development Authority of the state to get clearance. “There, I was told we did not pay the capital development levy for which I was asked to pay N428 million. Add this to the N16 million I had paid earlier on a piece of land I bought for N1.6 billion”, he added, lamenting that “this was how we had to put on hold a the project where we proposed a condominium of 52 flats and pent houses”. Similarly, Kingsley Nwagbo, group head, real estate of Intercontinental Homes, disclosed to BusinessDay that to get the building approval for his company’s housing development project in the Agege area of the state, Lagos government demanded N87 million. “Because of this, the project has been pending because you can’t just start building without the approval”. For transfer of title, Lagos charges 15 percent of the value of the land, and for every piece of land you buy not directly from the government, you have to pay N20, 000 per square metre of the land. All these not only increase the value of the assets, but also frustrate housing developments. For a state where 65 percent of its residents live in rented accommodation, spending between 50-70 percent of their monthly income on house rents, this state of affairs is not healthy. According to an analyst, who preferred not to be named, there has to be an effort on the part of the state government to think carefully about how much role real estate has to play in its revenue drive. “Real estate affects everything and affects businesses. The cost of doing business in Lagos is such that people would ordinarily look for other options. You need to balance that with the revenue you need to get from real estate. It will get to a point where people will tell you it does not make any sense any more to do business here”, he said.

http://www.businessdayonline.com/index.php?option=com_content&view=article&id=6939:lagos-housing-crisis-deepens-as-land-charges-frustrate-new-building-projects&catid=85:national&Itemid=340
Re: Fashola Stops Building Of New Houses In Lagos by Oboma1(m): 10:34am On Dec 21, 2009
I have always been a supporter of Tax Regime in Nigeria, but I think here, that Fasola is going too far. Some of this measures are too extreme, as we are beginning to imbibe the new regime. Fasola should watch out.
Re: Fashola Stops Building Of New Houses In Lagos by selingel: 10:57am On Dec 21, 2009
Where is the sense in buying a land for N1.6billion, and now being asked to pay N428m as development levy, even after paying N16million for land approval. It is obviously outrageous. These levies are becoming too much. I have not mentioned double-taxation being experienced in Lagos. I hope Fasola knows what he is doing. I am beginning to rethink on his policies.
Re: Fashola Stops Building Of New Houses In Lagos by Enjoyment1(f): 11:05am On Dec 21, 2009
selingel:

Where is the sense in buying a land for N1.6billion, and now being asked to pay N428m as development levy, even after paying N16million for land approval. It is obviously outrageous. These levies are becoming too much. I have not mentioned double-taxation being experienced in Lagos. I hope Fasola knows what he is doing. I am beginning to rethink on his policies.


This man has forgotten that Lagos has nothing but just foreign investments from within the country and outside. If the Igbos and other tribes goes back to their land, he is done for. It is only Federal Government that left Lagos, and infrastructure collapsed, talkless when the Igbos and others leave. These policies are too harsh.
Re: Fashola Stops Building Of New Houses In Lagos by Otobroto(f): 11:10am On Dec 21, 2009
selingel:

Where is the sense in buying a land for N1.6billion, and now being asked to pay N428m as development levy, even after paying N16million for land approval. It is obviously outrageous. These levies are becoming too much. I have not mentioned double-taxation being experienced in Lagos. I hope Fasola knows what he is doing. I am beginning to rethink on his policies.


There is no where that one will buy land and there are no charges. Lagos, your own policies are too harsh!.
Re: Fashola Stops Building Of New Houses In Lagos by Kay17: 11:48am On Dec 21, 2009
that fashola guy is just a thief! he has shown that he lacks foresight nor had he had any plan. 400 m for development levy! thats criminal!
Re: Fashola Stops Building Of New Houses In Lagos by Nobody: 12:44pm On Dec 21, 2009
The most painful part of this unfortunate situation is that the greater percentage of the cash so generated, ends up in private pockets. You need to see how these Lagos politicos are living, chief among them Ojuyobo the dopehead himself.
Re: Fashola Stops Building Of New Houses In Lagos by Otobroto(f): 1:53pm On Dec 21, 2009
Kay 17:

that fashola guy is just a thief! he has shown that he lacks foresight nor had he had any plan. 400 m for development levy! thats criminal!


I dont think Fashola is a thief, though not a Saint as a typical Nigerian leader. His policies are just too harsh. I am not against taxation, but Fashola's taxation is not employee-friendly. Some does not have human face.
Re: Fashola Stops Building Of New Houses In Lagos by Oboma1(m): 8:34pm On Dec 21, 2009
Otobroto:


I dont think Fashola is a thief, though not a Saint as a typical Nigerian leader. His policies are just too harsh. I am not against taxation, but Fashola's taxation is not employee-friendly. Some does not have human face.

I dont think the man is a thief either, though not a Saint as well, and his policies are not tax-payers friendly.
Re: Fashola Stops Building Of New Houses In Lagos by Enjoyment1(f): 9:49pm On Dec 21, 2009
Oboma1:

Lagos’ housing crisis deepens as land charges frustrate new building projects
MONDAY, 21 DECEMBER 2009 01:23 CHUKA UROKO



•Developers suspend building of new houses
More Lagos residents may remain either without homes they can call their own or in less befitting ones as what is seen as excessive land charges by the state government continue to frustrate housing development efforts by private developers in the state. Due to the high value land commands in the state, government has evolved numerous measures to regulate access to it, making the process of land acquisition cumbersome and convoluted. In recent times, there has been massive investment in infrastructure, planning; utilities, etc in the state’s pursuant of its dream of becoming a mega city by 2015. Presently, the state is the economic hub of the West African sub-region. As the state needs a huge cash outlay to fund the projects, it has raised its land charges to a point where many developers who can no longer afford it or do not see the wisdom in ‘wasting’ such huge amount, have decided to put their projects on hold.

According to Charles Okoye, managing director of UBN Properties, the cost of property development in Lagos is the highest in the country. “Cost of property development in Lagos is getting higher and higher, not because of the cost of building materials or labour, but because of the cost of land”, Okoye told BusinessDay. He disclosed that to get the plan approval for a piece of land his company bought at Lekki Phase 1, Lagos demanded N16 million after which he was referred to New Town Development Authority of the state to get clearance. “There, I was told we did not pay the capital development levy for which I was asked to pay N428 million. Add this to the N16 million I had paid earlier on a piece of land I bought for N1.6 billion”, he added, lamenting that “this was how we had to put on hold a the project where we proposed a condominium of 52 flats and pent houses”. Similarly, Kingsley Nwagbo, group head, real estate of Intercontinental Homes, disclosed to BusinessDay that to get the building approval for his company’s housing development project in the Agege area of the state, Lagos government demanded N87 million. “Because of this, the project has been pending because you can’t just start building without the approval”.

For transfer of title, Lagos charges 15 percent of the value of the land, and for every piece of land you buy not directly from the government, you have to pay N20, 000 per square metre of the land.




Can any kind hearted government do this to any of her citizen or resident under the guise of tax drive? This is share wickedness.
Re: Fashola Stops Building Of New Houses In Lagos by selingel: 10:08pm On Dec 21, 2009
Enjoyment1:


Can any kind hearted government do this to any of her citizen or resident under the guise of tax drive? This is share wickedness.

I really will like to advise Fasola to soft-pedal. He is taking it too far!.
Re: Fashola Stops Building Of New Houses In Lagos by lannre(m): 11:57pm On Dec 21, 2009
Eko oni Baje ! We need money in Lagos oh ! sweet things dont come easy, nobody should talk,we need money ,and Taxation is very legal and a progressive tax system we are practising here. Lagos my Lagos-BRF for second,third term sorry for life !
Re: Fashola Stops Building Of New Houses In Lagos by NIGboi(m): 12:27am On Dec 22, 2009
i guess his plan is to bring in more money for government, but this can easily backfire. the developers may pack their bags and run before the lose more money. they might even be attracted to other states and then when they have all left, where will the government find people to tax?
Fashola had better rethink this issue before it becomes too late
Re: Fashola Stops Building Of New Houses In Lagos by rasputinn(m): 3:49am On Dec 22, 2009
Much as I admire BRF,I have to say unfortunately that it's either he kills this extreme revenue drive of his or the extreme revenue drive will kill him
Re: Fashola Stops Building Of New Houses In Lagos by ayinba1(f): 4:00am On Dec 22, 2009
Maybe its time for the investors to pick another state to develop. This may actually help Nigeria in the long run.
Re: Fashola Stops Building Of New Houses In Lagos by proudly9ja(m): 4:36am On Dec 22, 2009
lannre:

Eko oni Baje ! We need money in Lagos oh ! sweet things dont come easy, nobody should talk,we need money ,and Taxation is very legal and a progressive tax system we are practising here. Lagos my Lagos-BRF for second,third term sorry for life !

If we need money to develop Lagos, they should first stop paying the billions they pay to Tinubu monthly. That should bring in some money.
Re: Fashola Stops Building Of New Houses In Lagos by Kobojunkie: 5:09am On Dec 22, 2009
@Poster,is the tax meant to curb cost of property or push it even higher? Not sure how 15 percent tax makes things any better for citizens. Even businesses are bound to transfer that cost to buyers.
Re: Fashola Stops Building Of New Houses In Lagos by selingel: 8:40am On Dec 22, 2009
Kobojunkie:

@Poster,is the tax meant to curb cost of property or push it even higher? Not sure how 15 percent tax makes things any better for citizens. Even businesses are bound to transfer that cost to buyers.


The man is just making things hard for people under his so-called tax drive.
Re: Fashola Stops Building Of New Houses In Lagos by madamL(f): 10:09am On Dec 22, 2009
When I complained about the tax men of Lagos, folks thought I was not in support of taxation. I was just pointing out the crude unexplainable ways they treat people. I know some companies that left Lagos due to harrassment. One office could assess and collect your tax while the next one will suddenly upgrade you and your tax. They don't care how you got money to start business but they will assess you based on blind aruements about how big your company looks and how you must be rolling in money.

Fashola might just get over-confident and spark a riot here. It is pure crime now to look comfortable in Lagos.
Re: Fashola Stops Building Of New Houses In Lagos by Enjoyment1(f): 10:34am On Dec 22, 2009
madam L:

When I complained about the tax men of Lagos, folks thought I was not in support of taxation. I was just pointing out the crude unexplainable ways they treat people. I know some companies that left Lagos due to harrassment. One office could assess and collect your tax while the next one will suddenly upgrade you and your tax. They don't care how you got money to start business but they will assess you based on blind aruements about how big your company looks and how you must be rolling in money.

Fashola might just get over-confident and spark a riot here. It is pure crime now to look comfortable in Lagos.

There will soon be riot in Lagos because of this tax regime. It is just too crude.
Re: Fashola Stops Building Of New Houses In Lagos by Enjoyment1(f): 12:07pm On Dec 22, 2009
proudly9ja:

If we need money to develop Lagos, they should first stop paying the billions they pay to Tinubu monthly. That should bring in some money.



How will I be convinced that Bola Tinubu is collecting billions monthly?
Re: Fashola Stops Building Of New Houses In Lagos by axeman85(m): 12:11pm On Dec 22, 2009
Nigerians we want the best of things and life and want government to provide everything for us BUT we dont want to pay for it . its not done anywhere becos even in developed countrued everybody pays tax even the cleaners who earn minimum wage also pay tax 16yr old who works also pays tax, every home owner either rented or woned pays a monthly fee called council tax not to talk of if you earn more u pay more.

so fashola is not a thief and the money used to change lagos has to come from somewhere apart from FG allocation budget.   developed countires and cities get a majority of their revenue from taxation.

PAY YOUR TAX AND DUES.
Re: Fashola Stops Building Of New Houses In Lagos by igboboy1(m): 12:19pm On Dec 22, 2009
axeman85:

Nigerians we want the best of things and life and want government to provide everything for us BUT we dont want to pay for it . its not done anywhere becos even in developed countrued everybody pays tax even the cleaners who earn minimum wage also pay tax 16yr old who works also pays tax, every home owner either rented or woned pays a monthly fee called council tax not to talk of if you earn more u pay more.

so fashola is not a thief and the money used to change lagos has to come from somewhere apart from FG allocation budget.   developed countires and cities get a majority of their revenue from taxation.

PAY YOUR TAX AND DUES.

Guy the argument is not about paying taxes, i think every GAD Damn worker in this country should pay taxes but the ISSUE is the rate, That is, is the tax burden realastic, Even in America people that get double taxed are crying left and right,
Re: Fashola Stops Building Of New Houses In Lagos by Enjoyment1(f): 12:26pm On Dec 22, 2009
igbo boy:

Guy the argument is not about paying taxes, i think every GAD Damn worker in this country should pay taxes but the ISSUE is the rate, That is, is the tax burden realastic, Even in America people that get double taxed are crying left and right,

The rate is the issue, Shekinah!.
Re: Fashola Stops Building Of New Houses In Lagos by otukpo(f): 12:36pm On Dec 22, 2009
Fashola shld take it easy.
Re: Fashola Stops Building Of New Houses In Lagos by c0274309: 12:45pm On Dec 22, 2009
igbo boy:

Guy the argument is not about paying taxes, i think every GAD Damn worker in this country should pay taxes but the ISSUE is the rate, That is, is the tax burden realastic, Even in America people that get double taxed are crying left and right,

I second Igbo boy's earlier statement. Accepted people in the western world cry out when double taxed they still end up paying these taxes cos it is the law, Higher income earners get their Annual Income taxed at 40% in the UK and scream earth, wind and fire but the fact remains they still pay it or risk getting a higher payment figure or jail time.

People who are jobless and can't even afford a meal still have to pay their council tax irrespective or they risk a visit from the Baliffs with over-exaggerated sums and a further court order which could also lead to serving jail time.

As to Fashola losing foresight I totally disagree; From a logical view the article talks about a private developer's intent to build a condominium of 52 flats and pent houses (which is quite a number) in an already clustered Lekki phase 1; Could this be another strategic way of declustering Lagos residents without the influx of taking the Lagos State Govt to court which we all know is useless in naija and never time cautious.
Re: Fashola Stops Building Of New Houses In Lagos by selingel: 12:50pm On Dec 22, 2009
c0274309:

I second Igbo boy's earlier statement. Accepted people in the western world cry out when double taxed they still end up paying these taxes cos it is the law, Higher income earners get their Annual Income taxed at 40% in the UK and scream earth, wind and fire but the fact remains they still pay it or risk getting a higher payment figure or jail time.

People who are jobless and can't even afford a meal still have to pay their council tax irrespective or they risk a visit from the Baliffs with over-exaggerated sums and a further court order which could also lead to serving jail time.

As to Fashola loosing foresight I totally disagree; From a logical view the article talks about a private developer's intent to build a condominium of 52 flats and pent houses (which is quite a number) in an already clustered Lekki phase 1; Could this be another strategic way of declustering Lagos residents without the influx of taking the Lagos State Govt to court which we all know is useless in naija and never time cautious.


 

Yes, you are right to an extent, but have you seen the figures displaced as against the tax policy here?. Have you noticed the double taxation techniques?
Re: Fashola Stops Building Of New Houses In Lagos by Kay17: 12:54pm On Dec 22, 2009
the man is a saint?? no no! he is stealing and chopping money. apart from building street lights( that never go on), extending roads, or BRT and planting flowers. what else could be shown for his work. no ambulance service, no water, no light, no effective fire brigades, no social welfare, no metro. the guy is simply a demagogue, he is good at manipulating the crowd.
Re: Fashola Stops Building Of New Houses In Lagos by axeman85(m): 12:57pm On Dec 22, 2009
@igbo boy

This is not a matter of the rate, if you want to do somethin then you are given a quotation either u like it or lump it as its mandatory. Lagos is already clustered already with houses everywhere and more people tropping into lagos on a daily basis for various reasons.  rates are being paid everywhere even in developed countries and they even disguise their such as council tax, which varies from area to area. for a company wanting to build such a mighty development, they should be able to pay the rates becos when they start selling off the houses they will be in million of naira or even rent it out in dollars and pounds. its a housing development and one way or the other the govt must benefit from it as hopefully the proceeds will go back to improving the city of lagos.
Re: Fashola Stops Building Of New Houses In Lagos by axeman85(m): 1:02pm On Dec 22, 2009
Kay 17:

the man is a saint?? no no! he is stealing and chopping money. apart from building street lights( that never go on), extending roads, or BRT and planting flowers. what else could be shown for his work. no ambulance service, no water, no light, no effective fire brigades, no social welfare, no metro. the guy is simply a demagogue, he is good at manipulating the crowd.

my friend why dont you keep you baldadash to yourself instead of opening your mouth and ranting rubbish and showing your stupidity on here. is expanding road not a means of trying to curb trafic jams, ? is introducing brt not an improvement compared to the molues ? planting flowers is beauty is that not better than seeing waste and refuse dumps by the roadside. ? and is all these not creating a few hobs for the unemployed ? do you pass by toll gate and 3rd mainland bridge and do u see those little buses and vans with sirens parket on those strategic areas ? there are not toys ok . so before you speak always think well and dont just make baseless and pointless accusations.
Re: Fashola Stops Building Of New Houses In Lagos by selingel: 1:02pm On Dec 22, 2009
Kay 17:

 the man is a saint?? no no! he is stealing and chopping money. apart from building street lights( that never go on), extending roads, or BRT and planting flowers. what else could be shown for his work. no ambulance service, no water, no light, no effective fire brigades, no social welfare, no metro. the guy is simply a demagogue, he is good at manipulating the crowd.



Yes he is not a Saint though, but he is trying. I am just against his tax collection method and tax-duplication. Why ask someone to pay another N428million, after you have collected N16million on a piece of land worth N1.6b? What is the basis for this?
Re: Fashola Stops Building Of New Houses In Lagos by c0274309: 1:06pm On Dec 22, 2009
selingel:

Yes, you are right to an extent, but have you seen the figures displaced as against the tax policy here?. Have you noticed the double taxation techniques?

Sorry I'm in the dark in regards to displaced figures in Lagos against the State tax policy. Likewise can you shed more light on the double taxation techniques mentioned above

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