The Lagos State government has confirmed that developing new towns is now a necessary response to mounting population pressure, limited land, and overstretched infrastructure.
Dr. Oluyinka Olumide, Commissioner for Physical Planning and Urban Development, made the announcement at UPDC’s 4th Annual Real Estate Summit in Lagos, highlighting that the megacity’s growth has outpaced traditional city expansion models.
With an estimated 25 million residents occupying just 0.4% of Nigeria’s total land area, Lagos faces significant congestion, making innovative planning a critical priority.
The commissioner noted that the state continues to absorb high numbers of internal and external migrants, intensifying demand on housing, transportation, and environmental systems.
“Developing new towns is a central strategy for redistributing population growth and opening less developed regions for orderly expansion,” Olumide said. “We are updating operational plans, expanding physical planning schemes, and collaborating with private developers to ensure emerging communities follow approved layouts, avoiding haphazard development that leads to slums and infrastructure deficits.”
He acknowledged ongoing urban management challenges, including land acquisition disputes, encroachments, funding gaps, and inconsistent compliance with planning regulations, stressing that these must be addressed for the successful delivery of resilient communities.
Environmental considerations also drive the new town agenda. Olumide explained that natural drainage channels and water flow paths in Lagos Island and surrounding areas have been disrupted, leaving many communities prone to flooding. “Creating new towns with modern drainage systems, protected corridors, and climate-resilient layouts supports the state’s wider efforts to reduce environmental risks,” he added.
The government is also improving access to housing and essential facilities in emerging growth corridors through partnerships with private sector firms. Opportunities for investors include technology hubs, logistics centers, industrial parks, tourism developments, and infrastructure corridors.
“Properly planned new towns will transform communities by improving housing, infrastructure, and essential services,” Olumide said. He also highlighted collaborations with Ogun and Ondo states to strengthen regional integration, facilitate movement, and support balanced development.
Prof. Franklin Ngwu, a strategic management expert at Lagos Business School, warned that Nigeria’s historical failure to plan for population growth threatens national development. He said new towns—integrated communities with housing, education, transport, commerce, leisure, and employment—offer an effective way to ease pressure on overcrowded cities.
Ngwu stressed that the real estate sector, contributing about 12.8% to Nigeria’s GDP, can drive stronger economic growth if large-scale, coordinated developments are implemented. Drawing from global examples, he cited transport-linked suburbs, master-planned communities, and university towns as models that generate jobs, expand markets, and strengthen value chains.
Chief Executive Officer of UPDC Plc, Odunayo Ojo, emphasised the summit’s timing, noting that congestion along corridors like the Lekki–Epe Expressway illustrates the limits of existing urban centers. He said the summit aims to bring government and private sector experts together to explore how new towns can improve economic development and residents’ quality of life.
Ojo added that new towns provide a practical solution for easing overcrowding, reducing commuting times, and expanding critical infrastructure for future generations.

