The Real Estate Developers Association of Nigeria (SEDAN), Lagos chapter, has called on the state government to review exorbitant charges imposed on members.
Its General, Secretary, Alhaji Mutairu Olawale, said the high charges were affecting their businesses.
He recalled that the increases started last year by the Ministry of Physical Planning and Urban Development, which upped building assessment fees by over 100 per cent.
He said the group, however, challenged the government’s move by writing to the ministry in charge and the speaker, House of Assembly, who directed them to liaise 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 five per cent charge based on an application for plan approval. As if that was not enough, last year, ‘’it was increased to 30 per cent’’.
According to him, although the SEDAN officials challenged the levy, the government did 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 per cent,” he said.
Olawale called on the government to review the levies, arguing that the charges were bound to have a spiral effect on the masses who are the ultimate recipient of their services.
He said if this was not done, rent for a self-contained apartment could hit N1.5million.
He added that these and the high cost of building materials such as cement and rods, which prices are going up daily, would also affect rents.
Source: The Nation Online
