The Lagos State Governor’s budget speech last week reveals policies that would have an impact on the real estate market.



The Lagos State Governor’s budget speech last week reveals policies that would have an impact on the real estate market. We present relevant excerpts.

No more waivers on land sales: One of the decisions that I have approved is the recommendation to stop granting waivers to those who seek to acquire land. We lose too much man hours processing requests for waivers for land and also lose revenues that the State would have earned.The truth is that we have not reviewed the cost of our land since 2008 and we will retain these costs to make them affordable.

Changes in fees and charges: Unfortunately, but necessarily, we must implement a review in the annual property rates under the Land Use Charge.

The reasons are simple. The massive infrastructural renewal in Yaba, Apapa, Ikoyi, Victoria Island, Lekki, Iba, Surulere, Mushin and other parts of Lagos has increased the property values and rental income to property owners in this State.

The rate of the Land Use Charge has remained unchanged since 2002 and although it was agreed that the rate will be increased in 2009, but at the peak of the global financial crises, we refrained from doing so until now.

So for 9 (Nine) years we have kept the same rate of Land Use Charge without review even though all the variables of the economy, inflation, interest, and exchange rates have increased.

I must now necessarily announce an increase of 0.05% in the rate of Land Use Charge effective from 1st January 2012

As we exercise these choices, we are mindful of the genuine aspirations and desires of our citizens to own their houses and transact businesses with their properties.

In order to continue to stimulate and facilitate this critical economic exchange, I have also approved the recommendation to reduce the rate of Governor’s Consent by 2%.

Although the rates for Stamp Duties and Registration remain the same, the gross costs for perfecting title now stands reduced from a total of 15% to a total of 13%.

And we have also pegged the total cost of mortgages for residential purposes only to a gross sum of 1% of the value of the property.

Similarly, in respect of the regularization of title to Government land, which some of our citizens built on without prior allocation or approval, I have approved the reduction of regularization costs as follows:
a. The removal of the E-Transaction fee, which is 10% of the assessment; and
b. The reduction of the penal fee from 100% to 50%.

This policy will be in effect only for the Year 2012, as we will no longer look kindly to encroachment of Government land.

Of course we are reviewing the costs and processes of obtaining building permit with a view to possible reduction of costs and expeditious processing of approvals in certain areas of the State to act as additional stimulus for real estate development and economic growth and increased job opportunities in the State.

Toll collection on Lekki Epe Expressway: The politically motivated resistance to the commencement of toll collection on the Eti-Osa, Lekki-Epe Expressway means that your Government had to part with N4 Billion for year 2011 which could have been used to provide more schools, inner roads, hospitals and social needs in Eti-Osa, Ibeju-Lekki and Epe areas.

This decision was sensible and necessary in order to maintain much needed and growing investor confidence in the Lagos economy, in order to maintain our credit rating and reduce our credit risk. It was critical to maintaining the stream of emerging investments required to create business opportunity and jobs for young people.

Regrettably however, our financial realities cannot sustain such funding to the detriment of other developments that are crying out for funding in other parts of the State.

It is undeniable that Property values have risen in that area because of the road work on Eti-Osa-Lekki-EpeExpressway; we have also recently completed the Falomo ramp. It is only fair that the investors begin to collect their toll.

I accordingly lift the suspension on toll collection and leave the concessionaire to announce the date for commencement of tolling

I guess elections are over. Toll will begin on lekki rod let see if there will be resistance.

@OP

What is your source for this story? Can you give us the source link if any?

Thanks.

heres the link
http://www.lagosstate.gov.ng/index.php?page=subpage&spid=985&mnu=module&mnusub=ministry&mpid=25

OAM4J:

@OP

What is your source for this story? Can you give us the source link if any?

Thanks.

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