The Lagos State Government has launched an extensive land formalisation programme aimed at identifying, documenting, and integrating informal land assets into the state’s official records. While the initiative is framed as a revenue and planning reform, it is also expected to significantly affect property owners, particularly landlords operating outside regulatory frameworks, at a time when rent prices across Lagos have surged to historic highs.
Governor Babajide Sanwo-Olu approved the engagement of Octagon Multi Projects as consultants for the exercise, which will be coordinated by the Lagos State Valuation Office. Branded under the slogan, “In Lagos, every square metre matters,” the programme seeks to curb land misuse, improve transparency, and unlock economic value tied to undocumented property holdings.
Policy Context and Rationale
Explaining the motivation behind the policy, Permanent Secretary of the Office of Physical Planning, Olumide Sotire, said informal land spaces in Lagos have been widely abused, often to the detriment of orderly development and public revenue.
“Lagos’ oil is its land. These informal lands will be identified and put to proper use,” Sotire said.
According to the government, the exercise will cover approximately 3,744 hectares of undocumented land, now valued at an estimated ₦3 trillion. Officials noted that previous land audits exposed significant valuation gaps, with assets once estimated at ₦800 million later revalued at about ₦8 billion, underscoring the scale of revenue leakages the state hopes to address.
Impact on Landlords and Property Owners
The formalisation drive is expected to have far-reaching consequences for landlords, particularly those who have benefited from weak oversight amid Lagos’ escalating housing costs.
Stricter Documentation and Tenure Security
Landlords whose properties are currently classified as informal will be required to regularise ownership through proper documentation. While this may enhance tenure security and reduce land disputes, it also eliminates the anonymity that has allowed some property owners to operate outside regulatory scrutiny.
Revaluation and Increased Fiscal Obligations
Once formally documented, properties will be subjected to updated valuations. This process is likely to result in higher property taxes, ground rents, and statutory levies. For landlords who have raised rents aggressively in response to market pressures, the policy introduces additional financial obligations that could narrow profit margins.
Tighter Regulatory Oversight
The initiative strengthens the hand of agencies such as the Lagos State Informal Space Management Authority, making it more difficult for landlords to maintain illegal developments, overcrowded housing units, or unapproved land use. Unscrupulous practices, including arbitrary rent hikes on substandard properties, may face increased scrutiny.
Compensation and Enforcement
While the government has assured landowners of compensation where land is reclaimed for public use, officials have also signalled stricter enforcement of planning and land-use regulations. Properties found to be in violation of zoning or development laws may be sanctioned or reclaimed.
Broader Economic and Housing Implications
The Lagos State Valuation Office argues that formalising land assets will strengthen investor confidence, improve urban planning, and expand the state’s tax base. By bringing informal land into the formal economy, the government aims to attract private investment, reduce ownership conflicts, and support long-term infrastructure development.
For tenants, the policy could indirectly moderate exploitative landlord practices by tightening regulation and increasing transparency in the property market. However, there are concerns that some landlords may attempt to pass new compliance costs onto renters, potentially worsening affordability challenges if not carefully managed.
A Shift in the Property Landscape
As Lagos grapples with soaring rents and mounting housing pressure, the land formalisation drive represents a significant shift in how property ownership and use are regulated. For landlords, particularly those operating informally, the era of minimal oversight may be coming to an end. The policy offers the promise of legitimacy and increased asset value, but it also introduces stricter accountability at a time when public scrutiny of rent practices is intensifying.
