- within Immigration, Tax and Finance and Banking topic(s)
Introduction
In Lagos today, it is common to see half-finished or finished buildings marked with red paint warnings or clear signs that a project has violated planning or building regulations. Unfortunately, many real estate developers wait until agencies like the Lagos State Physical Planning Permit Authority (LASPPPA) or the Lagos State Building Control Agency (LASBCA) arrive with enforcement notices before seeking the necessary approvals.
In this article, we will examine the key compliance requirements for operating as a developer in the real estate sector in Lagos State without any legal hiccups.
What Are the Regulatory Bodies for Real Estate Development in Lagos State?
The Corporate Affairs Commission
The Corporate Affairs Commission ("CAC") is the government agency that oversees the affairs of companies and other business and non-business entities in Nigeria. As a first step to operating as a real estate developer in Lagos, you must register your business with the CAC. The law is that every business owner in Nigeria must register their business with CAC within 28days of commencing their business. You must also file your annual returns as and when due to keep the status of your company active with the CAC.
Federal Inland Revenue Service/Nigeria Revenue Service
The Federal Inland Revenue Service ("FIRS") is the government body that regulates the taxes of individuals and businesses in Nigeria. After the registration with CAC, you are expected to register for your tax identification number and create a tax filing portal with the FIRS within six (6) months of registration with CAC. The FIRS is also responsible for issuing tax clearance certificates to real estate developers who file their tax returns as and when due. Note that you will require a tax clearance certificate to obtain a physical planning permit from the Lagos State Physical Planning Permit Authority.
Special Control Unit Against Money Laundering (SCUML) License
Given the high potential for money laundering and terrorism financing in the real estate sector, a Special Control Unit against Money Laundering (SCUML) certificate is required to carry on real estate business in Nigeria.
The SCUML license is issued by the Economic and Financial Crimes Commission ("EFCC"), and all real estate agents, developers, and businesses must obtain the license before commencing business.
Lagos State Real Estate Regulatory Authority
The Lagos State Real Estate Regulatory Authority ("LASRERA") regulates and licenses both local and foreign real estate practitioners in Lagos State, including real estate developers, facility managers, property management companies, etc. To legally practice as a real estate developer in Lagos, you must have a real estate practitioner license, which is renewable every year. To apply for LASRERA registration, you will need:
- Evidence of CAC registration
- Means of Identification
- Operational Office Address
- Minimum Qualification (Senior School Certificate Examination, SSCE)
- License Fee (depending on the category, e.g., Real Estate Agency, Broker, Developer etc.)
Lagos State Lands Bureau
The Lagos State Lands Bureau (The "Land Bureau") is responsible for land administration and management in Lagos State, Nigeria. It oversees key activities such as land allocation, issuing Certificates of Occupancy (C of O), land registration, and managing state-owned lands. This is where you register your title to land as a developer, whether you bought the land from a previous owner or obtained it directly from the government. Note that every subsequent assignment, lease, gift, or any other kind of transaction on the land is to be registered at the land bureau after obtaining the Governor's consent.
Lagos State Physical Planning Permit Authority
The Lagos State Physical Planning Permit Authority ("LASPPPA") regulates and oversees physical development within Lagos State. Before you begin any construction as a developer, you must obtain an approved layout and building plan to ensure your proposed project aligns with the Lagos State Urban and Regional Planning Law.
To view the article in full click here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
