Lagos remains one of Nigeria’s most active property development markets, fuelled by population growth, rising housing demand and the expansion of its urban centres.
But behind the city’s growing skyline is a property market shaped by complex land arrangements, rising development expenses and the challenge of providing homes and neighbourhoods that meet the needs of a diverse population.
As the city expands, questions around the cost of developing property, access to affordable housing and the quality of urban infrastructure have become increasingly important.
Developers must navigate a market where the demands of construction, regulation and urban growth intersect, while the consequences of poor planning can extend beyond individual projects to affect entire communities.
In an exclusive interview with Nairametrics, Tpl. Godfrey C. Aniebo, Managing Director and Co-founder of Goania Project Limited, a Lagos-based town planning consultancy, shares his perspective on the realities of property development in Lagos.
He discusses the financial and planning considerations developers need to understand, the challenge of making housing more accessible, and the wider urban development issues shaping the city’s future. The conversation also explores the need for better-planned neighbourhoods and the role of effective development control in building a more liveable Lagos.
Tpl. Godfrey C. Aniebo: As a co-founder of Goania Project Limited, I have observed that developers often underestimate several costs when planning projects in Lagos.
Title perfection is one of the first. Developers need to account for the cost of excision, Certificates of Occupancy, e-GIS searches and title validation. Purchasing unverified family land can also expose developers to disputes that may become expensive to resolve.
Planning approvals are another major cost. EPPPS submissions, professional fees, environmental assessments, drainage studies and traffic impact assessments all require time and money. Developers who do not factor these into their budgets from the beginning may face unexpected expenses and delays.
Drainage and sand-filling are particularly important in areas such as Ibeju-Lekki, where ground conditions can require substantial filling and careful attention to setbacks.
Community engagement is another area that developers sometimes overlook. Unresolved obligations and informal demands can create disputes, making proper agreements with host communities essential.
Developers must also account for compliance penalties arising from breaches of planning, environmental and building regulations. Inflation presents another challenge, as rising costs of cement, diesel and labour can affect project margins, particularly where homes have already been presold.
Finally, post-sales management can create additional costs through buyer disputes, documentation gaps and estate management responsibilities.
At Goania, we recommend using an EPPPS pre-launch compliance checklist to verify land titles, approvals, infrastructure budgets and community agreements before marketing or sales begin. In real estate, profitability starts with preparation, not sales.
Tpl. Godfrey C. Aniebo: The problem is not a lack of houses, but a lack of properly planned, affordable housing.
Most new developments in Lagos target high-income earners. We need functional studios, one-bedroom and two-bedroom apartments that teachers, young professionals and couples can afford, with room to expand over time.
High approval costs also increase housing prices. When Layout Approval, EIA and Planning Permits from MPP&UD/LASPPPA take months and cost millions, developers pass these expenses to buyers. Faster, automated EPPPS approvals can help reduce costs.
Developers also bear significant infrastructure costs, including sand-filling, roads and drainage. Government-led infrastructure development in Ibeju-Lekki, Epe and Ikorodu would reduce development costs and improve affordability.
Adopting locally sourced materials and faster construction technologies can further lower building costs.
Finally, accessible Certificates of Occupancy (C-of-O) and single-digit mortgage rates are essential. Without secure land titles and affordable financing, many residents cannot access mortgages or use their land as collateral.
Affordability must be built into housing from day one through efficient design, shared infrastructure, streamlined approvals and accessible mortgage financing.
Tpl. Godfrey C. Aniebo: The proposed development presents an opportunity to address unplanned urban sprawl along the Lekki corridor. However, its success will depend on how well existing communities are integrated into the new town.
Indigenous settlements should not simply be displaced or isolated. Their integration requires the provision of infrastructure, tenure security and appropriate buffers, while recognising existing community structures.
Housing should also be planned to accommodate different income groups. A balanced mix of low-, medium- and high-density developments is necessary, with at least 40% of housing targeted at affordable and incremental housing options.
Transport planning must be considered from the outset. This includes an interconnected road network, links to the proposed Fourth Mainland Bridge, and reserved corridors for BRT and rail services. Walkability should also be prioritised to reduce dependence on private vehicles.
Essential infrastructure such as water supply, independent power, wastewater treatment and stormwater management must be planned alongside housing. Environmental impact assessments and the protection of wetlands are equally important, as is effective development control.
The objective should be to create a functional, inclusive and sustainable city, rather than another residential estate.
Tpl. Godfrey C. Aniebo: This is a growing concern in high-demand areas such as Yaba, Surulere, Ikoyi, Lekki and Ikeja GRA. While higher-density development is necessary to accommodate Lagos’ growing population, excessive development on individual plots can undermine residents’ quality of life.
Planning authorities must enforce regulations on plot coverage, setbacks, natural lighting and ventilation. Development approvals should also be linked to the capacity of existing infrastructure, including parking, drainage, roads and utilities. Traffic impact assessments are important where proposed developments could place additional pressure on surrounding roads.
Density should be concentrated along public transport corridors, while established low-density neighbourhoods are protected. Developers should also provide adequate shared facilities and green spaces. Where regulations permit, incentives such as additional floor-area allowances could be considered for developments that provide public amenities, green spaces or consolidate plots.
Lagos needs to move from plot-by-plot approvals to area-based planning. Higher density must come with proportionate infrastructure, parking, green spaces and public amenities.
Tpl. Godfrey C. Aniebo: Reclaimed areas such as Banana Island, Eko Atlantic, Orange Island and parts of the Ibeju-Lekki axis require careful planning and engineering controls. Development on these sites must account for ground settlement, flooding and soil liquefaction.
Before construction begins, developers should conduct site-specific geotechnical and environmental assessments. These should include borehole investigations, Cone Penetration Tests (CPT), Standard Penetration Tests (SPT) and consolidation analysis to establish ground conditions, groundwater levels, settlement risks and flood exposure. Environmental Impact Assessments should also be carried out where applicable.
Foundation designs must reflect the findings of these investigations. Depending on the ground conditions, this could involve piled or raft foundations. The placement and compaction of fill materials should also be properly monitored, with independent quality-control checks.
Developers must consider minimum floor elevations, drainage and hydrological assessments to account for tidal flooding and storm surges. Materials testing, staged construction inspections, regulatory certification and appropriate insurance are also important.
