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5 Things Developers Want Gov. SANWO To Do For Them

It is a trying time for real estate players in Nigeria, most especially in Lagos, as the cost of housing materials, high cost of diesel, and inflation have become the major threat to the sector.

Property developers have been badly affected especially in the year 2022. Most of them have been speaking to the government to come in and help the sector. They are of the opinion that it’s only government policies that can change the narrative as most of them are helpless.

Many of these players have been suggesting factors that are affecting the business of real estate in Lagos.

This week, City People lists out 5 key things Developers want Governor Sanwo Olu to do for them.



Top on the list is the bureaucratic process of land registration. Lagos is among the worst when it comes to registering property, according to the World Bank’s Doing Business 2013 report, which ranks it 182nd out of 185 countries. The registration process can last for as long as 6 months to 2 years, taking an average of 12 procedures, and costing about 20.8% of the value of the property.

The lackadaisical attitude to work is the major cause of undue delay at the land registry. Oftentimes, a developer’s application would pass from office to office over several weeks and by the time the necessary approval is obtained, he may have lost his source of funding or incurred huge interest on a loan obtained for development.

Bribery and corruption are also issues affecting Nigeria's real estate industry. And it’s also similar to the first point because some of these applications are delayed when the applicant refuses to bribe his way out and it’s been said that, Nigeria suffers from elements of corruption, lack of fundamental data and poor environmental sustainability programs when building large-scale properties.

Bribery and corruption have a negative effect on the Nigerian real estate sector. There are instances where developers who have not satisfied the preconditions for allocation of land are granted allocation while those who are qualified are denied.



Real estate investors are subjected to multiple taxations, the taxes and levies paid by them include development levy, income tax, building plan approval levy, property tax, land use tax, and we also have cases whereby real estate investors are expected to pay renovation tax whenever they want to renovate their properties.



Nigeria possesses all the key factors for real estate investment — a growing middle-class population, growth in consumption, rapid urbanization and a young demographic compared to more mature economies.

Yet, financing remains a problem both for property developers and prospective homeowners. So whether you’re thinking of investment property financing or securing real estate loans for financing a personal home purchase, you will still have to deal with the familiar problem of insufficient capital sooner or later.

This could be attributed to underdevelopment in our mortgage industry as it generated less than 100,000 transactions between 1960 and 2009.



There is a dearth of competent and professional builders/contractors in Nigeria. This is also one of the issues affecting Nigeria's real estate industry. Most Nigerian builders/contractors are quacks who place more emphasis on money and the initial mobilisation fee instead of getting the right workforce and professionals that will execute the project.

When this becomes the case, the workforce is chosen based on availability and not competence and having the right skills. Experts have blamed incompetent artisans and weak supervision of workmen as one of the major reasons for building collapse and this is where the government can come in. They can regulate the industry and ensure that only competent and professional builders are licensed to work in the sector.



The existence of Omo-Onile especially in the Western part of the country is also part of the issues affecting Nigeria's real estate industry. They are a pain in the neck of real estate investors. Their activities lead to an increase in labour cost, cost of building materials and finally in the cost of completing a building project.

They demand levy for the foundation of a building, fencing of land, erection of gate, and lintel stage. Roofing stage, plastering stage. They levy the builders and artisans, levies are also charged for every building material transported to the site. All these are enough reasons to frustrate anybody who wants to invest in real estate. Another key point is that most investments are liquidity.

One of the factors that motivate investors is the ease of converting their investments to cash whenever the need arises. Unlike most other markets, investors can have a hard time finding statistics with basic information such as deal prices, supply, leasing activity and property ownership. In Nigeria, it takes months or years to convert a real estate investment to cash.



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