Former Minister of Works and Housing, Mr. Babatunde Fashola, has called on the Lagos State government to streamline the process for obtaining development and building approvals, emphasizing that the current system deters investors and hampers economic growth. He made this plea at the 2024 Lagos Physical Planning Summit held on Tuesday.
Fashola highlighted that the lengthy approval process, which can take up to two years, is sending potential investors away. He stated, “A process that takes two years to respond to an investor’s request for planning approval is sending that investor away. Especially in a period of price volatility, if the investor cannot get his approval within several weeks, and his price changes, they may be hesitant to return.”
He also advocated for fair and reasonable fees for processing building approvals, arguing that the focus should shift from generating revenue to providing efficient services. “Payments for planning approval must not be seen as revenue; they are not sustainable. It’s a one-off,” he explained. Instead, he emphasized that the real revenue for the government comes from the construction of buildings and the subsequent economic activities they generate, including land use charges, property taxes, and Value Added Tax (VAT).
Fashola stressed the importance of utilizing technology to reduce bureaucracy and streamline the approval process. He suggested compressing the number of agencies involved in the approval process, stating, “The more complex the process, the more expensive it becomes, making it less attractive for businesses.”
In response to these concerns, Lagos State Governor, Mr. Babajide Sanwo-Olu, acknowledged the need for reform and emphasized the importance of adopting a more efficient and investor-friendly approach to improve the state’s economic landscape.