Real estate developer Mr. Ayotunde Bally has expressed concerns that Lagos State Government’s introduction of electronic physical planning permit processing may increase costs and lead to multiple taxation.
Bally raised the issue in an interview with reporters on Friday in Lagos, saying the shift to a fully digital system has reduced developers’ flexibility in managing costs and timelines.
He noted that the system’s stricter fee structures have raised concerns within the sector.
“An additional 35% of assessment fees is now required at the approval stage, and developers must pay it before proceeding,” he said. Bally warned that operational costs could be passed on to developers, and centralised data access might trigger new levies.
He also expressed concern that developers could face further demands from local government agencies even after paying state-level fees, creating duplication and uncertainty.
Despite these concerns, Bally described the initiative as a positive development for the state. Benefits include improved revenue generation, reduced leakages, stronger compliance monitoring, and a structured base for expanding taxation in real estate.
“For developers, advantages include reduced physical interactions, improved transparency in application tracking, and more standardised approval processes,” he said.
Bally urged the government to harmonise all fees across state and local levels, eliminate duplication, and clearly define revenue collection roles. He also called for sanctions against unauthorised collections and protections for compliant developers.
He noted that developers are critical partners in addressing the housing deficit and should be supported through favourable policies. Rising approval costs, he warned, could be passed to home buyers, negatively affecting affordability.
While praising the digital permit system, Bally stressed it must be paired with fair pricing and proper regulatory alignment to avoid constraining development.
The Electronic Physical Planning Permit Processing System, launched by Gov. Babajide Sanwo-Olu in March, is designed to simplify and modernise Lagos State’s physical planning permit applications.
