The labyrinthine process of property registration in Lagos, Nigeria’s commercial capital, is emerging as a major hurdle for investors. With a staggering 17 different steps involved, developers are voicing their concerns about the stifling effect it has on business activity in the city.
This cumbersome system stands in stark contrast to established property markets like London, where developers navigate a mere nine steps, often from the convenience of their offices.
Lagos State Property Registration: A Multi-Agency Maze
Investors in Lagos face an intricate web of government agencies, each demanding approvals before a property can be registered. This bureaucratic maze includes the Lagos State Physical Planning Permit Authority (LASPPPA), the Lagos State Safety Commission (LSSC), the Ministry of Physical Planning and Urban Development (MPPUD), and the Lagos State Materials Testing Laboratory (LSMTL).
The list expands further to encompass the Lagos State Environmental Protection Agency (LASEPA), the Lagos State Fire Service (LSFS) for new constructions, the Standards Organisation of Nigeria (SON), the Lagos Waste Management Authority (LAWMA), the Lagos State Water Regulatory Commission (LSWRC), and the Lagos State Internal Revenue Service (LIRS), among others.
“Nigeria desperately needs to streamline the approval process for developers, particularly regarding planning requirements,” said Gbenga Olaniyan, chairman of Estate Links, in a recent Lagos meeting. “This is crucial for fostering diaspora investment in the country’s real estate sector.”
The World Bank’s Ease of Doing Business report underscores the importance of streamlined property registration procedures. Unfortunately, Lagos, along with Ogun and Rivers states, received low rankings in the 2021 report. While the World Bank temporarily halted the report in September 2021 for improvement, the rankings highlighted a critical issue for these Nigerian states.
Experts warn that the cumbersome processes not only restrict local economic growth but also hinder national progress. These bureaucratic bottlenecks contradict the frequent pronouncements by Nigerian politicians on fostering a business-friendly environment.
In a bid to address these concerns, Lagos State launched a land administration portal in January 2024. The initiative aimed to improve ease of doing business, expedite property registration, minimize corruption within the process, and guarantee title and transaction security.
However, investors remain apprehensive due to the continued existence of the lengthy and tedious 17-step process. The addition of new government agencies to the registration chain further complicates the issue.
Possible Solutions
The Lagos State government faces the urgent task of streamlining the property registration process. Investors require a more efficient and transparent system with fewer bureaucratic hurdles.
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Potential solutions include:
Consolidation of Agencies: Merging or collaborating similar agencies can reduce the number of entities developers need to interact with.
Online Processing: Enabling online applications and approvals can expedite the process and minimize physical interactions.
Standardization: Establishing clear and standardized procedures will eliminate ambiguity and ensure consistency.
Transparency: Providing clear timelines, fees, and documentation requirements fosters trust and avoids unnecessary delays.
A streamlined property registration process in Lagos would not only benefit investors and developers but would also send a powerful message to the international community. It would demonstrate Nigeria’s commitment to creating a business-friendly environment that encourages economic growth and attracts foreign investment.
