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The Lagos State Government generated approximately N80 billion in 2025 through building approval applications.
The Commissioner for Physical Planning and Urban Development, Dr Oluyinka Olumide, disclosed this massive revenue milestone on Friday during the 2026 Ministerial Briefing, which commemorated the seventh year of Governor Babajide Sanwo-Olu’s administration.
Olumide explained that the state determines these approval fees based on the size and location of the development, noting that a developer in Ikorodu pays a different rate than one in Ikoyi.
To maintain transparency, the ministry requires all applicants to make payments directly through banks. Applicants then present their bank receipts to the ministry to process and issue the approval.
Olumide stressed that his office does not handle cash directly, but rather tracks performance through end-of-year revenue and taxation metrics.
He noted that the state’s planning and processing reforms have successfully boosted total revenue to the N80 billion mark.
However, the commissioner warned that discrepancies in tax payments can stall the approval process.
He highlighted that the state will halt applications if a developer’s reported tax status looks doubtful, such as an individual paying N200,000 in annual tax while attempting to build a N3 billion property.
Olumide also issued a strict warning against safety violations, stating that building under power lines or over gas lines triggers immediate demolition.
Furthermore, the government will immediately tear down structures that deviate excessively from their approved plans.
The commissioner added that officials will also mark distressed or structurally unsuitable buildings for demolition, urging owners to take immediate action when authorities flag their properties.
