Taxation is a vote loser in any election but perhaps because in Nigeria most people avoid/evade tax it is not a hot election issue. However for a high brow area of Lagos State, a government levy is not making owners of land there very happy with the Government. Regularisation of land title was a levy brought up by the Lagos State Government since the Supreme Court's judgement that effectively ceded the right of planning and approval for developments in the state to it. Before this judgement physical planning approvals on land in Lagos State allocated by the Federal Government were given by the Federal Ministry of Works and Housing. So places like Osborne 1, Banana Island and Federal Parkview had to get approvals from the State Government which insisted that approval seekers must 'regularise' their title first. The regularisation fee: of N20000 per sqm. Now, a title to a 1000sqm plot of land will need N20 million to get “regularised.” “Double that figure” according a market expert on Banana Island, Prince Daniel of Danekhoe and Co “and you can buy a 5-bedroom detached house in any of the other high end estates in the Lekki Peninsular.” As things stand, investors and developers in Banana Island are betting on a political turn in Alausa to see if there might be a policy review or outright reversal of the regularisation fees. That is a shot for the long term and there is no indication that investors are in a hurry to develop their plots.

Although Banana Island properties took over a 50% percent downturn with the global recession, which saw major investors in Banana Island like banks and oil and gas firms sell off their interests, prices are gradually picking up. A 1706sqm plot in the residential Zone G which sold  for around N120 million earlier this year, now commands a  N171 million tag. The end users who were the beneficiaries of the price crash have their eyes on the long term which promises to be good. The unique infrastructures as well as the roll call of the rich and prime multinational companies who have moved their residences and corporate headquarters in Banana Island means that business can only get better for these investors. Already, the likes of Aliko Dangote, Mike Adenuga and Zain Nigeria have registered their presence in Banana Island. Prince Daniel says the strenuous regularisation exercise by the Lagos State Government may not get in the way of making Banana Island the prime luxury location, compared to Ikoyi.

 

The gated community, the well laid security plan, the underground cables, the central sewage and water supply system and other world class utilities in Banana Island makes the banana-shaped island stand out. “Can you find that in Ikoyi?” quips Prince Daniel.

The rules guiding building plan approvals (as laid down by the Federal Ministry of Works and Housing) have changed with the LASG taking development control of Banana Island. It used to be the case that developments in the mix-use residential and commercial areas of Banana Island were restricted to two floor (with Pent House) and six floors respectively. With the new legislation on physical planning in Lagos State, development restrictions in Banana Island might not be what it used to be. In a bid to leverage on the tiny size of Banana Island (less than a square mile,) sky scrapers and other high rise building in the commercial zone might not be out of place, if the price is right.  It obviously translates to more revenue for the LASG in issuing building permits in line with its massive urbanisation programme. However, the conditions for regularisation as it stands is scaring potential investors, considering what it would cost to develop their plots. Already, a lot of them have abandoned their investments waiting for the present administration to live out its time in office or until a time when a price review or policy reversal is enacted. The general consensus among watchers of Banana Island is that Alausa should listen to the investors and other stakeholders and review the regularisation fee for plots in Banana Island. Or get a Governor who will.