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INVESTIGACIÓN DE MERCADO

3. Análisis del Mercado

3.1 Investigación de la Oferta

3.2.1 Análisis del Comportamiento del Consumidor

Department

Time: 5 days

Cost: NGN 7,000

Comments: BuildCo requests a Fire Safety Report

to the Fire Service Department and submits the architectural drawing for examination. The Fire Safety Report details whether the proposed project is exposed to any fire-related risks, and details how the flames should be contained in the event of a fire.

Procedure 3. Apply for a building

permit at the Physical Planning and

Development Control

Time: 1 day

Cost: No cost

Comments: In order to obtain a building permit, BuildCo must submit a duly completed application form to the Physical Planning and Development Control, along with the following documents: a. Proof of ownership (such as a Certificate of

Occupancy);

b. Survey plan (attached to the Certificate of Occupancy);

c. Four sets of drawings, including:

ĖŤ1!'(3#!341+Ť"#2(%-2Ťij2(3#Ť/+-ďŤǬ..1Ť/+-2ďŤ elevations, sections, storm drainage system, construction details, and doors and win- dows schedules), duly signed by a registered architect;

ĖŤ314!341+Ť"#2(%-2Ťij"#2(%-Ť!+!4+3(.-2ďŤ foundation layout, structural details on beams, columns, staircases, etc.), duly signed by a registered structural engineer;

ĖŤ+#!31(!+Ť"#2(%-2Ťij+(%'3(-%Ť-"Ť/.6#1Ť+."Ť calculation, power point layout, lighting point layout, and schedule of fittings and fixtures), duly signed by a registered electrical engineer; ĖŤ#!'-(!+Ť#-%(-##1(-%Ť"#2(%-2Ťij+."Ť!+- culations, waste disposal layout, soil disposal layout, and schedule of sanitary fittings), duly signed by a registered mechanical engineer; d. Environmental Impact Assessment Report; e. Site Analysis Report;

f. Three-year tax clearance certificate; g. Fire Safety Report;

h. A letter of undertaking from the structural engineer.

The documents are reviewed by officers of the Physical Planning and Development Control. An on-site inspection will follow. Once the building approval has been granted, two copies of the drawing are given back to BuildCo to be kept on-site. BuildCo may need to present the stamped copies of its building plans when inspections occur during construction.

Procedure 4. Pay the building plan

approval fees at a designated bank

Time: 1 day

Cost: NGN 300,000

Comments: BuildCo is given a payment order to

be submitted to and paid at a designated bank. After payment, BuildCo is given a teller – or bank receipt – to be submitted back to the Physical Planning and Development Control. The Office then schedules an on-site inspection.

Procedure 5. Receive a pre-approval

inspection from the Physical Planning

and Development Control

Time: 1 day

Cost: No cost

Comments: After BuildCo’s application has been

reviewed, the Physical Planning and Development Control conducts an on-site inspection to verify that the plot reflects the details provided in the drawings and that the land is suitable for the proposed project. The inspectors draft a report in which the plot, roads, setback details, adjoining land and power and water connections are descri- bed. They also assess the fees to be paid by Build- Co. The report is then attached to the documents and drawings BuildCo submitted for approval, and forwarded to the Physical Planning and Develop- ment Control for final review and approval.

Procedure 6. Obtain a building permit

from the Physical Planning and

Development Control

Time: 30 days

Cost: No cost

Comments: After the inspection and the payments

have been completed, the Physical Planning and Development Control examines the documents submitted and issues BuildCo a building permit. The approval is valid for 24 months, after which a revalidation is required.

Procedure 7. Dig a borehole to obtain

water

Time: 14 days

Cost: NGN 500,000

Comments: The public water supply system is

very unreliable. It is common practice for cons- truction companies to hire the services of a private borehole company to drill and install a borehole of commercial capacity.

Procedure 8*. Set up a septic tank

Time: 14 days

Cost: NGN 200,000

Comments: BuildCo sets up a septic tank to

establish sewerage.

DOING BUSINESS IN NIGERIA 2014

124

Procedure 9*. Pay compensation to the

natives

Time: 7 days

Cost: NGN 200,000

Comments: With the Land Use Act of 1978, the

government appropriated land on which local tribes lived. Since then, in Benin City, construction companies wishing to develop a project must pay compensation to those natives, and hire some of them as masons or security guards on the site. Cost varies on a case by case basis, and highly de- pends on the negotiation skills of the construction company. Negotiations can take up to 7 days.

Procedure 10. Receive an inspection

during construction from the Physical

Planning and Development Control

Time: 1 day

Cost: No cost

Comments: Inspections in Benin City do not

follow any particular order. During construction, a team of inspectors from the Physical Planning and Development Control randomly visits the site to ensure that the construction company has a building permit, that the project is duly supervised, and that the construction follows the specifications mentioned in the building plan previously provided by BuildCo. Construction work does not stop during the inspection. If a problem is identified, the inspection teams issues a stop order requesting the issue to be resolved before construction proceeds further. In practice, during construction, 3 inspections happen.

Procedure 11. Receive an inspection

during construction from the Physical

Planning and Development Control

Time: 1 day

Cost: No cost

Comments: Same as above.

Procedure 12. Receive an inspection

during construction from the Physical

Planning and Development Control

Time: 1 day

Cost: No cost

Comments: Same as above.

Procedure 13. Request and receive

a final inspection from the Physical

Planning and Development Control 

Time: 1 day

Cost: No cost

Comments: After construction is complete,

BuildCo applies to the Physical Planning and Deve- lopment Control for a Certificate of Completion. A final inspection ensues, during which the Physical Planning and Development Control ensures that BuildCo’s warehouse abide by the details provided in the drawings and by the safety/construction standards described in the law.

Procedure 14. Obtain a Certificate of

Completion from the Physical Planning

and Development Control 

Time: 7 days

Cost: No cost

Comments: After the final inspection, the Physical Planning and Development Control issues BuildCo a Certificate of Completion attesting that the construction has been carried out according to the building plans submitted, and that BuildCo can now occupy the building.

Procedure 15*. Obtain a permanent

phone connection

Time: 1 day

Cost: NGN 6,000 (handset + connection)

Comments: Nigerian Telecommunications Limited

(NITEL), the public company historically in charge of providing phone landlines in Nigeria, is no longer functioning. Most Nigerian companies use a cell phone, with a subscription to one of the ope- rators available in the country (MTN, ZAIN, GLO or ETISALAT). The phone line can be connected at any time before and during the construction.

DEALING WITH CONSTRUCTION PERMITS

Ekiti, Ado-Ekiti

Warehouse value: NGN 74,890,495 (US$ 481,497) Data as of: March 2014

See Data notes for the methodology used to estimate the time and cost associated with each procedure.

Procedure 1. Obtain a land use clearance

from the Planning Permit Agency

Time: 2 days

Cost: NGN 5,000

Comments: BuildCo must obtain a land use

clearance to confirm that the use of the land on which the company plans to build the warehouse is suitable for the project. In order to obtain this document, the company must submit to the Planning Permit Agency:

a. Survey plan; b. Preliminary drawings;

c. Receipt of the sale of the land or Certificate of Occupancy (as proof of ownership); d. Three-year tax clearance certificate.

Procedure 2. Obtain an Environmental

Impact Assessment Report from a

registered town planner

Time: 7 days

Cost: NGN 85,000 (town planner fee)

Comments: BuildCo hires a registered town

planner to analyze the site and draft an Environ- mental Impact Assessment (EIA) Report. The EIA report lists the potential impact of the project on the environment, such as the noise, traffic and increase in human density issues that might arise as a result of the development. In order to draft the report, the town planner first verifies the site plan (attached to the Certificate of Occupancy) as well as the preliminary drawings prepared by BuildCo’s architects and engineers, before conducting an on-site inspection. If deemed necessary, he may conduct interviews with relevant stakeholders living in the area.

Procedure 3. Apply for a building permit

at the Planning Permit Agency

Time: 1 day

Cost: No cost

Comments: In order to obtain a building permit, BuildCo must submit a duly completed application form to the Planning Permit Agency of the Minis- try of Housing, Physical Planning and Urban Deve- lopment, along with the following documents: a. Proof of ownership (such as a Certificate of

Occupancy);

b. Survey plan (attached to the Certificate of Occupancy);

c. Four sets of drawings duly signed by a registe- red architect, including:

ĖŤ1!'(3#!341+Ť"#2(%-2Ťij2(3#Ť/+-ďŤǬ..1Ť/+-2ďŤ elevations, sections, storm drainage system, construction details, and doors and win- dows schedules) duly signed by a registered architect;

ĖŤ314!341+Ť"#2(%-2Ťij"#2(%-Ť!+!4+3(.-2ďŤ foundation layout, structural details on beams, columns, staircases, etc.) duly signed by a registered structural engineer;

ĖŤ+#!31(!+Ť"#2(%-2Ťij+(%'3(-%Ť-"Ť/.6#1Ť+."Ť calculation, power point layout, lighting point layout, and schedule of fittings and fixtures) duly signed by a registered electrical engineer; ĖŤ#!'-(!+Ť#-%(-##1(-%Ť"#2(%-2Ťij+."Ť!+- culations, waste disposal layout, soil disposal layout, and schedule of sanitary fittings) duly signed by a registered mechanical engineer; d. Environmental Impact Assessment Report; e. Land use clearance.

The documents are reviewed by officers at the Planning Permit Agency of the Ministry of Hou- sing, Physical Planning and Urban Development, who assess the fees to be paid, based on the size of the building, the use of the building and the lo- cation of the plot. An on-site inspection will follow. Once the building approval has been granted, two copies of the drawing are given back to BuildCo to be kept on-site. BuildCo may need to present the stamped copies of its building plans when inspections occur during construction.

Procedure 4. Pay the building permit

fees at a designated bank

Time: 1 day

Cost: NGN 188,072 (NGN 156,072 assessment

of commercial development [NGN 40 per cubic meter of the warehouse] + NGN 12,000 fencing fee [NGN 100 per perimeter of the plot of land] + NGN 20,000 registration of the Environmental Impact Assessment Report)

Comments: BuildCo is given a payment order to

be submitted to and paid at a designated bank. After payment, BuildCo is given a teller – or bank receipt – to be submitted back to the Planning Per- mit Agency of the Ministry of Housing, Physical Planning and Urban Development.

Procedure 5. Receive a pre-approval

inspection from the Planning Permit

Agency

Time: 1 day

Cost: No cost

Comments: After BuildCo’s application has been

reviewed, the Planning Permit Agency conducts an on-site inspection to verify that the plot reflects the details provided in the drawings and that the land is suitable for the proposed project. The inspectors draft a report in which the plot, roads, setback details, adjoining land and power and water connections are described. The report is

* This procedure can be completed simultaneously with previous procedures.

125

then attached to the documents and drawings BuildCo submitted for approval, and forwarded to the Planning Permit Agency for final review and approval.

Procedure 6. Obtain a building permit

from the Planning Permit Agency

Time: 14 days

Cost: No cost

Comments: After the inspection and the pay-

ments have been completed, the Planning Permit Agency examines the documents submitted and issues BuildCo a building permit, along with 2 signed copies of the plan. BuildCo must keep one copy on the construction-site, to be presented when inspectors from the Planning Permit Agency come during construction for inspection.

Procedure 7. Dig a borehole to obtain

water

Time: 14 days

Cost: NGN 500,000

Comments: The public water supply system is

very unreliable. It is common practice for cons- truction companies to hire the services of a private borehole company to drill and install a borehole of commercial capacity.

Procedure 8*. Set up a septic tank

Time: 14 days

Cost: NGN 200,000

Comments: BuildCo sets up a septic tank to

establish sewerage.

Procedure 9. Receive an inspection at

setting out level by the Planning Permit

Agency

Time: 1 day

Cost: No cost

Comments: Once the construction reaches the

setting out stage, BuildCo’s architect must notify the Planning Permit Agency that sends a team of inspectors to the construction-site. The purpose of the inspection is to ensure that the related stage has been completed successfully, that the project is duly supervised, and that the construction fo- llows the specifications mentioned in the building plan previously provided by BuildCo. Construction work does not stop during the inspection.

Procedure 10. Receive an inspection

at damp-proof course stage from the

Planning Permit Agency

Time: 1 day

Cost: No cost

Comments: Once the construction reaches the

flooring stage, BuildCo’s architect must notify the Planning Permit Agency that sends a team of inspectors to the construction-site. The purpose of the inspection is to ensure that the related stage has been completed successfully, that the project is duly supervised, and that the construction fo- llows the specifications mentioned in the building plan previously provided by BuildCo. Construction work does not stop during the inspection.

Procedure 11. Receive an inspection

at roof level from the Planning Permit

Agency

Time: 1 day

Cost: No cost

Comments: Once the construction reaches the

roofing stage, BuildCo’s architect must notify the Planning Permit Agency that sends a team of inspectors to the construction-site. The purpose of the inspection is to ensure that the related stage has been completed successfully, that the project is duly supervised, and that the construction fo- llows the specifications mentioned in the building plan previously provided by BuildCo. Construction work does not stop during the inspection.

Procedure 12*. Obtain a permanent