REAL Estate Developers Association of Nigeria (REDAN), Lagos chapter, has called on the state government to review the outrageous charges imposed on its members.
The General Secretary, Alhaji Mutairu Olawale, stated that the high charges were affecting their businesses.
He noted that the increase started in 2020 by the Ministry of Physical Planning and Urban Development, which increased building assessment fees by over 100%.
Olawale said the association challenged the government’s directive by writing to the ministry in charge and the speaker of House of Assembly had directed them to reason with the appropriate committee.
“We appeared before the committee and pleaded that the increment was too high and should, therefore, be reviewed. Up till now, nothing has happened,’’ he said.
Olawale said a few months after their encounter with the House, the government introduced the special enhancement levy, which is a 5% charge based on an application for plan approval.
“As if that was not enough, last year, it was increased to 30%,” he said.
According to Olawale, REDAN challenged the upsurge in assessment and processing levy but the government has not fulfil its promise to review it.
“At the moment, the government charges for building plans, permit and processing fees as well as for stage certification levy of 35%,” he said.
Olawale called on the government to review the levies, stating that the charges were bound to have a negative effect on the masses as the ultimate recipient of their services.
“If this is not done, rent for a self-contained apartment could hit N1.5million,” he said.