The Lagos State Government generated approximately N80 billion from building approval applications in 2025, according to the Commissioner for Physical Planning and Urban Development, Dr. Oluyinka Olumide.
Olumide made the disclosure on Friday during the 2026 Ministerial Press Briefing held to commemorate the seventh year of Governor Babajide Sanwo-Olu’s administration.
According to the commissioner, the amount reflects the state’s growing success in planning regulation, permit processing, and revenue generation from development activities.
Approval Charges Vary By Location
Explaining how building approval fees are determined, Olumide said charges depend on the size, value, and location of a proposed development.
“For example, somebody developing in Ikorodu may not pay the same thing as somebody developing in Ikoyi,” he said.
He explained that all payments are made through designated banks and not directly to the ministry.
“It is after getting that receipt that you come to us and show the receipt. A copy of the receipt goes into your file and we process the application. We don’t collect money directly.
“What we know is that at the end of the year, our performance is reflected in revenue records. Last year, I think we generated about N80 billion or so,” he added.
Tax Compliance Important For Approval
The commissioner noted that applicants with questionable tax records could experience delays or rejection of their applications.
According to him, tax declarations must align with the scale of the proposed development.
“Now, you have somebody who pays N200,000 as annual tax and wants to develop a N3 billion building. Something is not okay. You have not disclosed the right tax information, and such an application may not proceed because your tax status is in doubt,” he said.
Government Warns Against Illegal Developments
Olumide also warned developers against constructing buildings on restricted corridors such as gas pipelines and power transmission routes.
He stressed that structures erected on such locations could face immediate demolition.
“If you build on a gas line, we will remove it immediately. If you build on a power line, we will remove it immediately,” he said.
The commissioner added that developments that significantly deviate from approved plans may also be demolished without delay.
Distressed Buildings Face Enforcement Action
He further disclosed that distressed and structurally unsafe buildings remain a major concern for the government.
According to him, buildings assessed as unsafe may be marked for urgent attention and, where necessary, demolished to protect lives and property.
“If a building is assessed and adjudged no longer suitable, it can be brought down immediately. When we mark a building as distressed, we are simply calling the owner’s attention to take necessary action,” Olumide stated.
The commissioner reiterated the government’s commitment to enforcing planning regulations, promoting orderly urban development, and ensuring public safety across Lagos State.
