May 13, 2026
- Land transaction fees in Lagos have surged by an estimated 300% as the state recalibrates the Fair Market Value (FMV) of properties to reflect current market realities.
- The fee increase, which affects multiple land transaction categories, is part of the 2026 FMV adjustments outlined in the recently released Blue Book, effective from May 1, 2026.
The revised fees, which include Governor’s Consent, Stamp Duties, Registration, Capital Contribution Levy, Charting, and Miscellaneous Fees, have stirred discussions within the real estate sector. Governor’s Consent, the official approval required to transfer or assign land interests in Lagos, has seen a sharp rise, particularly in prime locations such as Lekki Phase 1, Ikoyi, and Banana Island.
In Lekki Phase 1, for instance, the Governor’s Consent fee has increased from between N12 million and N18 million in 2015 to between N40 million and N90 million in 2026. This sharp rise is due to the significant increase in land values in the region, which have surged from N250 million in 2015 to between N800 million and N1.5 billion today.
In Ikoyi, properties that previously attracted fees ranging from N25 million to N40 million now face a range of N100 million to N250 million, as land values in the area have skyrocketed from N500 million to between N2 billion and N4 billion over the past decade.
For those eyeing waterfront properties in Banana Island, the transaction costs have risen sharply, with the perfection cost now ranging between N700 million and N1 billion, based on a property value of N10 billion.
The state government has clarified that the fee increase is due to a reevaluation of land valuations, which had remained largely unchanged from 2005 to 2015, despite significant increases in property values across Lagos. The new 2026 Blue Book aligns valuations more closely with the current market, aiming to improve transparency and bring the statutory fees in line with true market values.
The state authorities emphasized that the goal behind the fee hikes is not simply to increase revenue but to better reflect market realities and create a more transparent and equitable valuation system for land transactions in Lagos.
Credit: Business Day
