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All You Need to Know About Lagos State Parking Levy on Setbacks

All You Need to Know About Lagos State Parking Levy on Setbacks

The Lagos State parking levy collection on setbacks is now operational in the state. The State government through its parking agency – Lagos State Parking Authority has commenced the collection of parking levies for vehicles parked on setbacks outside the perimeter fence of business orgnisations. Dear Reader, are you a business owner operating from any property in Lagos State? Please stay close by and read along.

In an official letter (that has now gone viral on the web) dated August 15, 2022. The Lagos State government through the State Parking Authority slammed a total sum of N290,000 on Nellies, a food and pastry business in Lekki. This amount is the parking charge for three parking lots on a setback. Also included in the sum is a non-refundable administrative processing fee of N50,000. The agency explained in the letter that each parking lot on a setback is charged at N80,000 per annum, plus a processing fee of N50,000.

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Start Your Business in 30 Days Even If You Don't Have An Idea
Start Your Business in 30 Days Even If You Don’t Have An Idea

Lagos State Parking Authority

The Lagos State Parking Authority is the parking regulatory agency of the Lagos State Government. They are saddled with the responsibility to achieve excellence in how Lagos State parking policies are envisioned and developed. This is in line with best global practices for a modern, efficient and sustainable managed parking system. A parking system geared towards reducing congestion, disruption, improved road safety and changing travel behavior.

What is a Setback?

According to LASPA, “a setback is the space between your perimeter fencing and the walkway or the road, as the case may be”.  Some people have argued that a setback space around a particular property belongs to the owner of that property. But the parking agency has clarified that “whoever claims he/she owns a setback around his/her property will have to provide official documentation from the authorized MDA in Lagos State showing the legal ownership of the said setback and the Traffic Impact Assessment (TIA) certificate of the property to the Authority”

It is important to also note that the parking fees being charged by the State agency are not for vehicles parked inside a property premises. The fees only applies to those parked on the setback space outside the perimeter fence of a property. This point has also been reiterated by LASPA in a general notice issued on their website.

According to the agency, “The general public MUST be aware that LASPA or any of its staffers or agents WILL NOT charge on cars parked in any compound but if anyone parks on the setback, such person, organization or group of persons will be charged accordingly”.

See also, 15 Small Business Startup Costs And How To Reduce Them.

What To Do As Business Owner or Operator

  • Make adequate parking spaces available for your staff and visitors inside your business premises. This is especially true for such properties with ample spaces inside their premises.
  • Clearly map out and delineate the parking spaces available on the setbacks around your business property. This is to avoid being over-billed by the parking agency for spaces not belonging to your property.
  • Make sure that setback spaces around your property are only used for those that transact business with you.
  • You may consider providing paid parking services if you have large setbacks for parking around your property. This will help you offset part of the huge parking fees you will be paying to the government.
  • You can erect a notice of disclaimer on the safety of vehicles parked on the setback spaces around your property. This will protect your business from liabilities arising from the theft of vehicles or vehicle parts as well as vandalism.
  • You may get a security personnel to direct traffic if the location of your business property is on busy streets/roads. This is to avoid traffic incidents.

On a final note share your thoughts with us in the comment section below on the implementation of this Lagos State parking levy policy. Do you think the State government is on track by placing additional tax burden on business owners? Let’s have your thoughts!

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