The Lagos State Government generated about N80 billion in revenue from building approval applications in 2025, the Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, has disclosed.
Olumide made the revelation on Friday during the 2026 Ministerial Briefing held in Lagos to mark the seventh anniversary of Governor Babajide Sanwo-Olu’s administration.
Explaining the cost structure for obtaining building approvals in the state, the commissioner said charges vary according to the size and location of the proposed development.
According to him, property developers in highbrow areas are expected to pay more than those developing in less expensive locations.
“For example, somebody developing in Ikorodu may not pay the same thing as somebody developing in Ikoyi,” he stated.
Olumide stressed that all payments for building approvals are processed through banks and not directly handled by officials of the ministry.
He explained that applicants are required to present evidence of payment before their documents can be processed.
“It is after getting that receipt that you come to us and show the receipt. So a copy of the receipt goes into your file here, and we process it,” he said.
The commissioner added that the ministry’s revenue performance is reflected in the state’s annual revenue and taxation records.
“So far, we are gaining from our exercise in terms of planning and processing. Last year, I think we got about N80bn or so,” he disclosed.
Olumide also warned that inconsistencies in tax records could delay or prevent approval applications from being processed.
He noted that applicants seeking approval for multi-billion naira projects must have tax records that correspond with the scale of their investments.
“Now, you have somebody who pays N200,000 as annual tax, and you bring in land, and you want to develop a N3bn building, something is not okay. You have not disclosed the right tax. So such an application would not work because your tax status is in doubt,” he said.
The commissioner further issued a stern warning against illegal developments, especially structures erected on power lines and gas pipelines.
According to him, such buildings face immediate demolition by the state government.
“If you build on the gas line, we will remove it immediately. If you build on that power line, we will remove it immediately,” he warned.
Olumide added that buildings constructed outside approved specifications or developments deemed structurally unsafe could also be demolished without delay.
He explained that distressed buildings identified by the authorities are considered unsafe and require urgent attention from owners.
“If your building is assessed or adjudged as no longer suitable, it can be brought down immediately,” he said.
The commissioner, however, clarified that when a building is marked as distressed, it serves as a warning to the owner to take corrective action before further steps are taken by the government.
