How phony levies frustrate investors’ efforts at projects devt in Rivers
Though the Rivers State Assembly has waded into the matter, raising hope of reprieve for real estate investors/developers in the state, what these investorrs are going through at the moment in many communities in the state is mind-boggling.
Across communities, especially in upland Port Harcourt metropolis made up of Port Harcourt Municipality Council (PHALGA) and Obi/Akpor Local Government Area (OBALGA), property developers, after paying hugely to acquire land, are made to part with a motley of levies, without which fierce-looking young men would menacingly frustrate the projects. All these are after the said property developer had adequately registered with the various state regulatory agencies.
First in the line of the ‘development levies’ is the youth levy, for which able-bodied youths would visit the site, present a computer printed papers as “youth levy demand notice,” which must be paid on demand at site, else they will confiscate site workers’ tools. Amounts asked for range from N60,000 for a bungalow, and N120,000 if it is a multi-storey building.
Next in the levies is a group called ‘Council of Chiefs Levy’ which force property developer to pay upon being presented with a computer printed letter bearing the official logo of the chiefs. Here, the investor must part with at least N80,000 if he is lucky to know a man who will be shown to him as a representative of the ‘Council of Chiefs.’
Thirdly, on the same day, the ‘Local Government Sanitation Levy’ of N85,000 would be demanded by another group irrespective of whether or not the would-be investors had gone to the local government council and made appropriate payment or not. The LGC sanitation agent, who usually is a native of where the new project is located, must ensure the project is not allowed to continue without ‘settling’ him and his group.
The ‘Security Levy’ of N30,000 is demanded by the natives where the project is sited, and it is demanded ‘with immediate effect.’ The developer is again made to pay the ‘Rivers State Board of Internal Revenue –Artisan/ Tradesmen on Site Development Levy’, amounting to N80,000; whereas there is a probably unofficial ‘Building Plan Approval from Local Government levy of N60,000.
Again the real estate developer would come up with a ‘Matching Ground Levy’ of N30,000, seen as his ‘appreciation for being allowed to step on our soil’ – a sort-of permission to start the project.
If you think you are done with payment of the phony ‘development levies,’ wait until you have been asked to pay for ‘Community Development Council Committee Levy’” which, if you are lucky, you would pay N30,000. Then, another group of youths would emerge with demand for ‘Road Levy,’ which may be N30,000 or more. Finally, ‘agent’ for Ministry of Urban Development, would come, demanding for few thousand, irrespective of whether or not you have paid fees at the concerned ministry. This native agent always insists on your payment of the unofficial levy.
As the building is nearing completion or gone some level, the ‘Electricity Levy’ comes in, categorised into provision for high tension cables and concrete electric poles considered as mounted nearest to the developer’s building.
Apparently, to stop the illegal levies and encourage more investments in real estate sector, especially commercial buildings, members of the Rivers 7th Assembly enacted new laws prohibiting payment of such illegal levies by would-be property developers in the state.
Speaker of the Assembly, Ikuiyi Iwaji announced the legislature’s discouraging of cash payments to any agent, as various state ministries and the Revenue Board have been mandated to use the banks for any government transaction.
BEN EGUZOZIE