₦airaland Forum

This article wouldn't have come at a better time than now, in view of the recent activities of the Lagos State Government in some parts of Lagos State where some buildings were recently demolished for violations of planning law.

This article will help you to know what the law says, the professionals to engage, addresses and offices to visit in order to get your building approval.

Below are some key parts in the article

INTRODUCTION
One of the major challenges affecting Nigeria today is housing deficit. From 1999 to 2020, the population growth increased by (119.3 million/206 million) 57.91%. Hence, it may be erroneous to claim that the housing deficit is 17 million, as we have more people homeless now in 2021 than previously have been at any time in the history of Nigeria. This can also be corroborated by the fact that Nigeria is said to be the capital of world’s poverty in terms of population.

For anyone to carryout out any development in many jurisdictions around the world, there is a need to get approval/permission from the authorities in those jurisdictions, which is why this article is focused on the processes involved in getting approval/permit to build any structure in Lagos State

CLARIFICATION: PLANNING APPROVAL IS DIFFERENT FROM C OF O/OTHER LAND TITLES
Before going fully into the topic of discourse, it is pertinent to make some clarifications of what planning permit/approval is. Approval to build or develop is completely different from land title.

Principal Ministries and agencies to deal with in order to get approval
Lands Bureau, Ministry of Physical Planning and Urban Development, Office of the Surveyor General, Ministry of Environment, Ministry of Transportation, LIRS, NTDA etc

THE PROCESS OF GETTING THE APPROVAL
In consonance with the Lagos State Urban and Regional Planning and Development Law 2010, the Ministry of Physical Planning and Urban Development is responsible for Physical Planning, Urban Development, Urban Regeneration and building control policies of Lagos State
The ministry also supervises the following agencies:
Lagos State Physical Planning Permit Authority (LASPPPA): Lagos State Building Control Agency (LASBCA): and Lagos State Urban Renewal Agency (LASURA)

Planning Information
Either before or after buying the land, there is a need to apply for planning information from the Ministry of Physical Planning and Urban Development.

Preparation of documents
Upon getting a nod from the Ministry of Physical Planning and Urban Development based on the planning information, the next thing the intending developer should do is to start preparing necessary documents.

Submission of relevant documents
Sequel to the preparation of necessary documents to facilitate the application, the developer would then submit same to LASPPPA office in the local government area where the property is situated. Some of the documents to be submitted include the survey plan, architectural drawing, structural drawing, among others.

Obtaining assessment
Officer(s) will very verify the documents, request for more details if necessary, make corrections where necessary and thereafter schedule a site visit for inspection

Payments to be made
The assessment is always in two parts. Part 1 will be payment to me made to LASPPPA as the agency granting the approval and the other part will be payment to LASBCA for stage certification.

Issuance of development permit/ approval
Sequel to confirmation of payment into the dedicated account, officials of LIRS would issue a letter to the GM (as stated above). The letter would enable LASPPPA to complete the approval process and development permit is issued to the applicant/developer.

BUILDING CONSTRUCTION PROCESS
After getting the approval from LASPPPA, there is need for LASBCA to grant approval to commence construction. The developer cannot just mobilize workers to site on the basis of obtaining approval. Developer must take the approval to LASBCA in order to get another approval to commence work.

MOVING INTO YOUR HOUSE AFTER COMPLETION OF DEVELOPMENT
After completing the development, LASBCA must issue certificate of completion of building construction and fitness for habitation before the developer or house owner can move in

PROFESSIONALS TO ENGAGE FOR PLANNING APPROVAL
In consonance with the LAGOS STATE PHYSICAL PLANNING PERMIT REGULATIONS, 2019 issued by TPL (Dr.) Idiris Okanla̕ Salako the Commissioner for Urban and Regional Planning, the following are the appropriate relevant professionals registered to practice in Nigeria:
(i) an Architect, registered (ii) an Engineer, registered (iii) a Town Planner, registered (iv) a Licensed Surveyor, (v) a Builder, registered (vi) an Estate Surveyor and Valuer registered (vii) a Quantity Surveyor registered

Please visit the site for other things you must know and do. The remaining part includes
Different uses land can be subjected to in Lagos State
Documents to submit
WHERE ARE LASPPPA OFFICES IN YOUR LGA IN LAGOS?
etc
https://aolmanagementconsult.com.ng/a-z-what-to-know-about-obtaining-building-permit-approval-in-lagos-state-in-2021/

Lalasticlala, mynd44 and Mukina2, when you want to build in Lagos, just follow this guide and no one will trouble you

SocialJustice:
They should wait for me to pay. Nonsense people. The one landlords and agents are doing isn't enough, FG wants their share too.

The money is not so much if you are to go with 0.78%

please help share this information to Nigerians

INTRODUCTION

This article wouldn’t have been put up at a better time than this, to address this issue currently at the front burner, as it affects renters and property owners. It is imperative to separate facts from myths, so as to allay fears in some quarters and also attempt to provide clarifications due to the ambiguity around the FIRS circular and how (Stamp Duty charge) it would be implemented.

Sometime in early July, 2020 when FIRS first made the announce on stamp duty charge on lease/tenancy agreement going forward in Nigeria, some Nigerians had interpreted it to mean going to Nigerian Postal Service (NIPOST) to obtain N50 postage stamp and affix same on the tenancy agreement, while some interpreted the regulation to mean 6% of professional fee for the preparation of the lease/tenancy agreement.

In this article, attempt would be made to answer certain questions, make some clarifications and separate facts from myths

IS STAMP DUTY SAME AS NIPOST POSTAGE STAMP?
No.
FIRS is charged with the collection of stamp duty on behalf of federal government and State IRS for the 36 states and FCT, not NIPOST. Hence the N50 postage stamp is not the same as what is provided in the Stamp Duty Act

 
IS STAMP DUTY ON TENANCY/LEASE AGREEMENT 6% OF PROFESSIONAL FEE?
No
Stamp duty on lease/tenancy agreement is charged ad valorem (i.e. in proportion to the value of the consideration)

WHO/WHAT IS FIRS.
FIRS is the acronym for Federal Inland Revenue Service.
The Federal Inland Revenue Service (FIRS) statutory and administrative mandate is the responsibility for the assessment, collection and accounting of taxes to the Federal Government of Nigeria

WHAT IS STAMP DUTY?
Under the Stamp Duties Act, CAP S8, LFN 2004 (as amended), stamp duty is payable on any agreement executed in Nigeria or relating, whatsoever, to any property situated in or to any matter or thing done in Nigeria. Instruments that are required to be stamped under the Stamp Duties Act must be stamped within 40 days of first execution.

IS THERE ANY LAW ON STAMP DUTY IN NIGERIA?
There is the Stamp Duty Act (SDA) of Nigeria dated 31st December 2003, which can also be cited as Stamp Duties Act, CAP S8, LFN 2004 (as amended)
The act has three parts (Parts 1, 2 and 3) and 118 sections

WHAT DOES THE FINANCE ACT 2019/2020 SAY ABOUT STAMP DUTY?
The finance act 2019 is contained in the Federal Republic of Nigeria official Gazette No.6 of 14th January, 2020 Vol.107 in Government Notice 11. It has its commencement date as 13th Day of January, 2020
The finance Act 2019 has seven parts (Parts 1, to 7) with 57 sections/amendments and citation.
Part VII covers amendments of Stamp Duty Act from sections 52-57

INSTRUMENTS SUBJECT TO STAMP DUTY CHARGE IN NIGERIA
In consonance with the Stamp Duties Act, CAP S8, LFN 2004 (as amended), the following instruments are subject to stamp duty charge  Deed of Assignment, Contract Agreement, Bonds (Mortgage) Memorandum and Articles of Association, (Alteration of memo), Legal Mortgage,  Deeds of Conveyance or Transfer on Sale of Property, Tenancy/Lease and many more as contained in the act

WHY PAY STAMP DUTY ON LEASE AGREEMENT?
If one carefully study the Stamp Duties Act, CAP S8, LFN 2004 (as amended) and particularly part 2 and sections 68 to 71, it is clear that tenancy/lease agreements are required to be charged stamp duty. The challenge is that over the years, the tax authorities, FIRS/IRS may have failed to implement or enforce the law. Now during the pandemic and dwindling income/revenue accruable from sales of crude oil to the country, the FIRS passed a circular for the payment/collection of stamp duty to boost income to the federal and state government.

IS THIS NOT ANOTHER PART OF MULTIPLE TAXATION NIGERIANS ARE COMPLAINING ABOUT? AND WHY MUST I PAY STAMP DUTY?
This depends entirely on the view point.
Paying taxes is part of civic responsibilities and there are various taxes that are imposed on individuals, goods and organizations. Stamp duty is one of those taxes and it should be paid on tenancy/lease agreements but the agencies responsible for collection may have failed to collect over the years or many Nigerians failed to pay

HOW IS STAMP DUTY CALCULATED AND HOW MUCH SHOULD I PAY AS A TENANT?
As stated above, Stamp duty is chargeable either at fixed rates or ad valorem (i.e. in proportion to the value of the consideration), depending on the class of instrument. In the case of tenancy/lease agreements, it falls under ad valorem (i.e. in proportion to the value of the consideration). This implies that whatever rent you pay as a tenant to your landlord, certain percentage of that rent is charged as stamp duty.

WHO IS TO PAY STAMP DUTY?
The liability for payment is on the beneficiary of the service and in this case, it is the tenant.

WHO IS TO COLLECT?
The Director, Communications and Liason Department, FIRS, Mr Abdullahi Ahmad had said the responsibility of collection and remittance fall on the landlord or agent in charge of the property for lease or rent.

WILL I BE PAYING STAMP DUTY ON LEASE AGREEMENT ANNUALLY?
No.
Mr. Femi Oluwaniyi, Coordinating Director, Tax Operations Group of the FIRS told The Nation that stamp duty on rent or lease only applies to new agreements and not to renewals. If you are a sitting tenant and your landlord signs a tenancy agreement with you once, the charge would apply only once, except if a fresh agreement is prepared annually for renewal.

WHAT IF THERE IS NO AGREEMENT BETWEEN ME AND MY LANDLORD, DO I STILL NEED TO PAY? 
If there is no written or electronic agreement and you are a tenant at will or verbal agreement was entered into by the parties (landlord and tenant) you would most likely not pay stamp duty on the tenancy or lease

PENALTIES FOR FAILURE TO COLLECT AND FAILURE TO REMIT
According to FIRS Chairman Mr Muhammad Nami Failure to deduct or remit stamp duties into the Federal or State Stamp Duties Account attracts relevant penalties and interest as stipulated in the Stamp Duties Act, Cap S8, LFN 2004 (as amended)

https://aolmanagementconsult.com.ng/firs-6-stamp-duty-charge-on-tenancy-lease-agreement-how-it-affects-you-as-landlord-or-tenant/

There is a table of worked example of how you can calculate Stamp Duty on your own and not be cheated by your landlord

Are you thinking of buying any property and seems confused about the C of O and the Governor's Consent? read the full article to allay your fears.

The Governor's Consent is as valid as the C of O and there is no need to apply for a C of O on a land with a Governor's Consent.

Feel free to ask any question in this regard

In this article, we would be focusing on two of the most popular land tiles most Nigerians are familiar with, either by handling or just hearing about them. We would explain in details what each of the tile documents is, what they are not and also share images, as well as describing the differences between these two title documents.

Highlights of this article
WHAT IS A C of O (CERTIFICATE OF OCCUPANCY?)
WHO CAN ISSUE A CERTIFICATE OF OCCUPANCY?
WHO CAN BE ISSUED A CERTIFICATE OF OCCUPANCY?
UNDER WHAT GRANT CAN A CERTIFICATE OF OCCUPANCY BE ISSUED?
ON WHICH LAND CAN A C of O BE ISSUED?
CAN A C OF O BE VOIDED, REVOKED AND CANCELLED?
WHAT HAPPENS AFTER 99 YEARS LEASE STATED IN THE C OF O EXPIRES?
WHAT IS GOVERNOR’S CONSENT (REGISTERED DEED OF ASSIGNMENT?)

WHAT IS A C of O (CERTIFICATE OF OCCUPANCY?)

A Certificate of Occupancy is an authorization document issued by the State Governor/Government (as the case in Nigeria) to an individual, groups of individuals or an entity conferring the right of occupancy of a particular property clearly defined by its location size and a term of 99 years.

https://aolmanagementconsult.com.ng/wp-content/uploads/2019/07/c-of-o-sample.jpg

WHO CAN ISSUE A CERTIFICATE OF OCCUPANCY?

The Land Use Act of 1978 unified the land tenure system in Nigeria and empowers by virtue of Section 9(1) the Governor of every state in Nigeria (the Minister of FCT for Abuja) to issue a Certificate of Occupancy under his hand in evidence of a right of occupancy

WHO CAN BE ISSUED A CERTIFICATE OF OCCUPANCY?

The Constitution of Nigeria provides that every citizen of Nigeria has a right to acquire and own immovable property in Nigeria. There is no discrimination in terms of sex, name, ethnicity, and religion on issuance of this certificate to any person(s) provided the applicant meets the requirement.

UNDER WHAT GRANT CAN A CERTIFICATE OF OCCUPANCY BE ISSUED?

The Land Use Act does not nullify any interest in the land prior to the Act. Under the Land Use Act 1978, there are two types of rights of occupancy recognized by the Act. These comprises Statutory right of occupancy and Customary right of occupancy. In both cases of Statutory and Customary rights of occupancy, therefore, there exist an actual grant as well as a deemed grant

ON WHICH LAND CAN A C of O BE ISSUED?

It must be emphasized without equivocation that no land can have two Certificates of Occupancy. If there exist two on a single land, one must be a fake document or issued in error due to deception of the government. We have seen circumstances like this before, which were settled in the court

CAN A C OF O BE VOIDED, REVOKED AND CANCELLED?

The Land Use Act that states how the C of O can be granted also provides grounds under which the C of O can be revoked.

WHAT HAPPENS AFTER 99 YEARS LEASE STATED IN THE C OF O EXPIRES?

This is another question many would have at the back of their minds in view of the fact that the C of O confirms the Governor as the perpetual owner of the land, while the holder of the C of O is an occupier for 99 years only.

WHAT IS GOVERNOR’S CONSENT (REGISTERED DEED OF ASSIGNMENT?)

We are used to the term ‘Governor’s Consent’ and not many understand what it means. At times you ask people for the title document covering a land and you hear responses like ‘the property has a ‘Governor’s Consent’ as if ‘Governor’s Consent’ is a document like a C of O is.
https://aolmanagementconsult.com.ng/wp-content/uploads/2019/07/Governors-consent.jpg

The full and elaborate article can be obtained on the website, which shows the clear difference between the two documents
http://aolmanagementconsult.com.ng/difference-between-a-c-of-o-certificate-of-occupancy-and-governors-consent-registered-deed-of-assignment/

Our moderators too can now buy properties with either a C of O or Governor's consent Mynd44, Laslasticlala, Mukina2

Dandsome:
Administration of blame games and responsibilities shifting

Study to show understanding.

This Government has zero blame. Ask the president in power in 2013 that sold PHCN to private investors to manage

Nevee:
If only NERC and the government would tell the truth to the public about the mess they created in the power sector that the DISCOs are now trying to clean up. It's really not a good time most of the DISCOs, bad business something . No wonder most of them are saying they are not doing again and that they are ready to collect their money back even if it is at a discount.

If metering was that easy, why didn't government meter everyone when they still had major control before privatization? Scam government!

You've displayed little understanding of the power sector.

In 2013 precisely 1st November, President Goodluck Jonathan privatized the Gencos and Discos, then retained only Transmission Company of Nigeria.

From 2013 to May, 2015 the Gencos and Discos realized that they have no idea of power Generation and Distribution, but ran into debts over poor management.

Fashola became the Minister and the Gencos and Discos cried for intervention. Buhari approved a refund of what they paid to Government under Jonathan to be given to them as loan/support. Despite that, they're still under performing.

Infact government has refunded their monies back

How's this the problem of Buhari or this administration? Why not call Jonathan that privatized and handed over power sector to people who have no idea of how stuff works?

Anthony Joshua lives in a cheap house in England

MrMcJay:
All those buying from Real Estate Companies should conduct verification before they buy. Check well before you throw money away.

Most people reading this have been scammed by real estate companies. Most of them are saying excision is undergoing processing. Which of them has gotten a single excision since they started selling different estates?

Buying from the government is the best and safest. Omoniles follow and then honest real estate companies.

You've made valid points.

All those companies selling land in Ibeju, Èpè, Ikorodu, Mowe, Ofada etc are scamming people. They are selling land with no valid titles. Most of the properties they sell to people are under government acquisition.

As an estate Surveyor and valuer, registered to practice and not those charlatans claiming to be selling real estate properties, we advise people to verify titles at the land Registry.

Do the buy any land that doesn't have title
Survey plan is not a registered title
Family receipt is not a registered title
Claim of excision or Gazette existing and you're not showed before making pay is also an attempt to scan you.

If you didn't sight a C of O or a registered Deed of Assignment or a Land Certificate or a registered Conveyance, run and don't buy that land.

Land survey is not a title
A survey plan can be prepared in the name of 10 people on the same land. Hence, survey plan is not a title

kryptem:
Good for knowledge. At least, I have learnt one or two things.
But, is the bureaucracy easy and how long would it take from start to finish; Just an overview?

I assure you, if all documents are complete 180 days is enough to start and conclude.

Yes, I'm speaking the truth

shogbenga:
I advise that prospective subscribers should thread carefully with buying land from Lagos State government. I paid for IGBOGBO scheme since 2009, till this moment, no allocation. 4 years ago, I applied for refund. As I type this comment, the government has not done anything. A lot of us are victims. For me it's easier to buy from estates developers than from Lagos government. In fact, I will rather buy from omonile than from Lagos government.

There are issues in Ikorodu, but same can not be said about other schemes.

Please always consult professionals who are registered Estate Surveyors and Valuers to advertise, not quacks

In this article, you'll learn about all residential and industrial schemes available in Lagos State, owned and managed by the Lagos State Government. You'll also learn about the 4 Ministries Departments and Agencies (MDAs) that manages these schemes, how to own a property in any of the schemes and steps you need to take in getting development permit, thereby avoiding the Lagos State Building Control Agency from sealing/demolishing your building.

https://aolmanagementconsult.com.ng/wp-content/uploads/2019/03/NTDA-Scheme-768x614.jpg

In exercising the power conferred on the governors of each state, the governors can acquire land for public use through residential schemes for allocation to residents in the state as part of efforts to meet the housing needs of citizens of the state. This paper examines the various residential schemes created by the Lagos State Government in Nigeria and further discusses how to subscribe to any of these schemes and processes involved in developing same.

SOME GOVERNMENT RESIDENTIAL SCHEMES IN LAGOS STATE
There are 5 divisions in Lagos State and in these 5 divisions; we have the constitutionally recognized 20 Local Government Areas and the 37 additional Local Council Development Areas. The schemes created by the Lagos State Government are available in each of the five divisions which are listed below

Lagos Island Division: Lekki Pennisula Scheme 1, Lekki Pennisula Scheme 2, etc
Epe Division: In Epe Division, we have Orisan Waterfront; Agbowa mixed scheme, Light Industrial Scheme, Teachers’ Village, Temu and Valley View Mixed development schemes respectively.
Badagry Division: We have Amuwo-Odofin, Ijanikin Rose Garden, Safe-Court Garden Ijanikin, Mosafejo Aradagun Scheme and Sunny Field Scheme.
Ikeja Division: We have Oko-Oba Scheme, Omole Scheme, Fortune Garden Residential Scheme, Ilasamaja Industrial Scheme Isolo, apart from the well known Magodo Scheme and Isheri residential scheme.
Ikorodu Division: Ikorodu GRA 2 and 3 and Millennium residential scheme

AGENCIES THAT MANAGES GOVERNMENT SCHEME IN LAGOS STATE
There are four primary government MDAs (Ministry Department and Agencies) directly responsible for the management and design of all Lagos State Government Schemes. These agencies are The New Towns Development Authority (NTDA) Ministry of Physical Planning and Urban Development, Land Use and Allocation Committee (LUAC) and Office of the Surveyor General of Lagos State

HOW TO ACQUIRE LAND IN A GOVERNMENT SCHEME
The various schemes under the ownership and management of the Lagos State Government have been listed above. Some of these schemes are fully subscribed and no longer available in the primary market (direct allocation/sale by Government) except from secondary market (buying from original allottees) while some others are still available for purchase from the Lagos State Government.
Click on the link for more information

DEVELOPING LAND WITHIN GOVERNMENT SCHEME
There are various clauses in the Letters of Allocation and Certificates of Occupancy issued to allotees of Government Scheme which states categorically that land must be fully developed within 2 years from the date of issuance of the Certificate of Occupancy. Failure to comply with these clauses could constitute a breach. The Government has always warned plot owners in the scheme to commence the development of their plots, or have them confiscated by the State

It is important to note that before any development can be commenced on any land in Lagos State, there is need for development permit to be sought from the Ministry of Physical Planning and Urban Development. Under the Ministry is the Lagos State Physical Planning Permit Authority (LASPPPA) the agency responsible for granting development permit. All intending developers must apply to the agency before they can mobilize personnel to the site.

DEVELOPING LAND IN GOVERNMENT SCHEME WITHOUT APPROVAL
Every property/building in the state must be validated and regularized in line with the specifications of the state Ministry of Physical Planning and Urban Development, irrespective of whether the building/property is within Government Scheme or private land. There exist the Urban and Regional Planning and Development Law 2010 that regulates development in Lagos State.

http://aolmanagementconsult.com.ng/processes-involved-in-acquiring-and-developing-land-in-lagos-state-government-scheme/