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Over 60 per cent of Lagos residents are forced to live in informal settlements, a new report has revealed, highlighting the severity of the state’s housing crisis and the growing gap between affordable housing supply and the needs of its rapidly expanding population.
The finding was contained in the State of Lagos Housing Market Report, Volume 3, published by the Roland Igbinoba Real Foundation for Housing and Urban Development. The report paints a worrying picture of life in Lagos, where areas such as Makoko and Ajegunle continue to reflect the challenges of urban poverty, poor living conditions, and insecure land tenure.
According to the report, obtaining a Certificate of Occupancy (C of O) from the government gives landowners legal rights over their property. However, despite being designed to streamline ownership and discourage land speculation, the Land Use Act has also created bureaucratic hurdles and slowed access to secure land tenure.
To address these challenges, the Lagos State Government has embarked on several reforms through the Land Bureau. Among the initiatives are the introduction of the Electronic Certificate of Occupancy and the Lagos State Geographic Information System (LASGIGIS), which aim to make land transactions more transparent and reduce corruption. The state also established the Land Regularisation Programme, which helps informal landholders legalise their ownership, and started digitising land records to improve retrieval and investor confidence.
“These reforms are already improving efficiency, transparency, and accessibility in land administration,” the report stated. “They have boosted investor confidence in the real estate sector and reflect Lagos’s efforts to modernise land governance under Nigeria’s existing legal framework.”
On housing delivery, the report noted that Lagos State has increasingly turned to Public-Private Partnerships (PPPs) to reduce its housing deficit. Under this model, the government provides land and regulatory backing, while private developers bring capital and technical expertise.
One notable example is the Ilubirin Estate in Ikoyi, a mixed-use project developed on reclaimed land through a partnership between the Lagos State Government and First Investment Property Company. The estate combines residential, commercial, and leisure spaces, catering to multiple income levels.
Other projects highlighted include the Housing Estate Development at Igbogbo, Ikorodu, built on 8.8 hectares in collaboration with M-Bridge Limited, and the Greenwich Gardens Housing Estate in Agboyi-Ketu. The latter, a 101-unit residential project, stands out as the first estate delivered under a PPP arrangement by a local authority with direct grassroots involvement.
“These PPP projects underscore Lagos State’s commitment to tackling its housing shortage by combining public oversight with private sector efficiency,” the report said.
The report also highlighted several urban renewal projects led by the Lagos State Urban Renewal Agency to improve infrastructure and turn slums into liveable communities. In Lagos Island, the Isale-Gangan neighbourhood underwent redevelopment through a land-pooling arrangement where 13 families jointly gave up their properties. This paved the way for the construction of an 11-floor apartment block with 56 units of two- and three-bedroom flats, showing how communities can collaborate in renewal efforts.
Another major project cited is Gracefield Island, a 100-hectare planned city on reclaimed land in Lagos Lagoon, developed by Gravitas Investments Limited in partnership with the state government. Designed to host between 10,000 and 25,000 residents, Gracefield Island is planned as a sustainable city, featuring cycle lanes, green infrastructure, and public charging stations for electric vehicles.
These projects, according to the report, reflect the Lagos government’s broader vision to create sustainable, inclusive, and economically vibrant communities, while addressing both the housing deficit and the problem of informal settlements.
The third edition of the State of Lagos Housing Market report comes nearly a decade after the second edition, released in 2016. The first edition was published in 2009.
