The Lagos State Government has unveiled a sweeping plan to identify, document, and formalise informal land assets across the state.

The initiative is designed to curb misuse, unlock economic value, and boost revenue generation. Governor Babajide Sanwo-Olu on Wednesday approved the engagement of Octagon Multi Projects as consultants, with the Lagos State Valuation Office coordinating the exercise under the slogan: “In Lagos, every square metre matters.”

Why the Policy Matters

Permanent Secretary of the Office of Physical Planning, Olumide Sotire, explained that informal land spaces have been “largely abused” and must be reclaimed. “Lagos’ oil is its land. These informal lands will be identified and put to proper use,” he said.

The project covers 3,744 hectares of undocumented land valued at an estimated ₦3 trillion, a significant jump from earlier projections. Consultants note that similar efforts a decade ago revealed massive revenue gaps, with land initially valued at ₦800 million later reassessed at ₦8 billion.

Implications for Landowners

For landowners, the initiative carries both opportunities and obligations:

  • Documentation and Security of Tenure
    • Landowners whose properties fall under “informal” classification will now have their holdings formally recognised.
    • Proper documentation strengthens ownership rights and reduces disputes.
  • Valuation and Taxation
    • Once documented, lands will be properly valued. This increases transparency but also means landowners may face higher property taxes or levies based on updated valuations.
    • The government sees this as a way to plug revenue leakages.
  • Compensation Where Applicable
    • Officials have stated that compensation will be paid in cases where land is reclaimed for public use.
    • However, landowners must be prepared for stricter enforcement of planning regulations.
  • Potential for Increased Land Value
    • Formalisation could significantly raise the market value of previously undocumented land.
    • Owners may benefit from improved access to credit, as banks and investors prefer formally registered assets.
  • Regulatory Oversight
    • Landowners will be subject to closer monitoring by agencies such as the Lagos State Informal Space Management Authority.
    • Informal developments, encroachments, or misuse of land will be harder to sustain.

Wider Economic Impact

The Lagos State Valuation Office says the initiative will strengthen investment growth and improve long-term revenue prospects. By formalising land, the government hopes to:

  • Attract private sector investment.
  • Enhance urban planning and infrastructure development.
  • Reduce conflicts over land ownership.
  • Expand the state’s tax base.

For landowners, Lagos’ new policy is a double-edged sword: it offers stronger ownership rights and potential value appreciation, but also brings stricter regulation, higher compliance costs, and possible taxation.