Why Building Permit Fees Are Kept High in Lagos - Sanwo Olu

Lagos State Governor Babajide Sanwo-Olu has addressed concerns about the cost of building permits, explaining that the fees are intentionally high to deter bribery and curb misuse within the construction approval system.

Sanwo-Olu shared this perspective at the Chartered Institute of Directors (CIoD) conference held in Lagos, where he discussed how good governance can drive economic recovery and growth in Nigeria. He highlighted the importance of discouraging situations where individuals offer bribes to officials to approve building projects beyond legally sanctioned heights.

The governor clarified that charging a cost-reflective fee for permits is intended to discourage developers from bribing inspectors, as they will have already committed considerable resources to obtain necessary approvals through proper channels.

“We have initiated reforms to strengthen our institutions, promote transparency, and ensure accountability across all sectors in Lagos State. Are there challenges? Yes. Are there individuals who attempt to tarnish our image? Yes,” Sanwo-Olu stated.

He further illustrated the issue by explaining that some developers attempt to bypass regulations by bribing officials. For example, he noted that if someone plans to build beyond their approved limit of three floors but instead constructs seven, they might consider bribing inspectors to overlook the discrepancy. By setting high permit fees, Sanwo-Olu argues that developers would have less incentive or resources to offer bribes.

“When I receive feedback that the permit fees seem excessive, I explain that the fees are set high deliberately to discourage bribery. Once you have paid a substantial amount, you won’t have any extra to bribe anyone,” Sanwo-Olu explained.

He emphasized that when developers pay the appropriate fees, they are more likely to stand firm if approached for bribes, knowing they’ve fulfilled their financial obligations. Sanwo-Olu added, “If an officer tries to solicit additional money, you can remind them that the governor has provided for their allowances and there’s no need for further payments.”