Lagos Generated N80 Billion From Building Permits - Commissioner , Lists Conditions That Could Warrant Demolition

The Lagos State Government generated about N80bn in 2025 through building approval applications.

The Commissioner for Physical Planning and Urban Development, Dr Oluyinka Olumide, disclosed this on Friday in Lagos during the 2026 Ministerial Briefing in commemoration of the seventh year of Mr Babajide Sanwo-Olu’s administration as Lagos State Governor.

Speaking on the charges for obtaining building approval, Olumide explained that the rate is determined by the size of the development and the particular location.

“For example, somebody developing in Ikorodu may not pay the same thing as somebody developing in Ikoyi. So that is a good example,” he said.

He added that all payments are made through the bank, and the applicant will only present a receipt of payment to the ministry, where the approval will be issued.

“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. We don’t charge money; we don’t make it available.

“What we know is that at the end of the year, our total revenue will be estimated for revenue and taxation. It will display our performance. 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 said.

Olumide pointed out that discrepancies in tax payments can delay the processing of building approvals.

“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 added.

The commissioner warned against building under power lines and gas lines, adding that building outside what was approved attracts immediate demolition.

“Now, the condition that can warrant immediate demolition in Lagos: if you build on the gas line, we will remove it immediately. If you build on that power line, we will remove it immediately.

“If you build excessively and aggressively out of order, not in line with the approval granted, you can also be demolished. Those are areas that can warrant immediate demolition. I don’t want to go into the control part,” Olumide added.

According to him, a distressed building could also attract immediate demolition. “If you have a distressed building, that’s another one that can warrant immediate demolition. If your building is assessed or adjudged as no longer suitable, it can be brought down immediately.

“So if we say a building is not suitable, take it like that. And when we say buildings are not suitable, it doesn’t mean that the demolition is done. What it simply means is, take attention,” Olumide disclosed.

  

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