The Lagos State Government has reaffirmed its commitment to Lagos expanded housing development in 2026, with plans to complete multiple ongoing projects and deliver additional residential units across the state as part of its comprehensive strategy to bridge the housing deficit. Commissioner for Housing, Mr. Moruf Akinderu-Fatai, announced the government’s determination to accelerate housing delivery during a recent review of the ministry’s 2025 performance, emphasizing that completing all ongoing projects remains a top priority aligned with Governor Babajide Sanwo-Olu’s vision for the year.
The state government is targeting completion of over 14,000 housing units by 2026, building on the nearly 10,000 units delivered over the past six years since 2019. This ambitious target encompasses projects at various stages of development across Lagos’ five administrative divisions, representing one of the most comprehensive housing expansion programmes undertaken by any state government in Nigeria. The initiative combines direct budgetary allocation projects with public-private partnership developments, creating a multi-pronged approach to addressing Lagos’ estimated 3 million housing unit deficit.
Among the priority projects earmarked for completion in 2026 are the Sangotedo Phase II development in Eti-Osa East LCDA, comprising 528 housing units that will serve the rapidly growing Lekki corridor. The Egan-Igando Clusters II and III in Igando-Ikotun LCDA will add 576 residential units to the state’s housing stock, with completion projected for the first quarter of 2026. The Ibeshe Phase II project in Igbogbo-Baiyeku LCDA will contribute 192 housing units, expanding affordable housing options in the Ikorodu division.
The Ilubirin Foreshore Housing Project represents one of the most ambitious developments under the 2026 plan. Located on a 27-hectare waterfront site on Lagos Island, the first phase consisting of 196 units is scheduled for completion by December 2026. The mixed-use development, being executed through a public-private partnership with First Investment Development Company Limited and Ibile Holdings, will ultimately accommodate nearly 3,000 residential units across 15 to 20-storey buildings, along with hospitality and commercial facilities including a hotel component.
Commissioner Akinderu-Fatai stressed that the ministry would continue strengthening collaboration with key stakeholders, including private developers and financial institutions, to guarantee smooth implementation of housing initiatives in line with the THEMES Plus development agenda. This collaborative approach has proven effective in mobilizing resources beyond government budgets, with private sector participation contributing 5,976 housing units through PPP arrangements since 2019, compared to 3,994 units delivered through direct budgetary funding over the same period.
The expanded housing development plans for 2026 come with substantial financial backing from the state government. Lagos allocated N101.6 billion for Housing and Community Amenities in its 2025 budget, representing an 81.7% increase from the N55.92 billion allocation in 2024. This budgetary commitment demonstrates the government’s recognition that addressing the housing crisis requires not just policy statements but sustained financial investment at scale. While the 2026 budget details are still being finalized, indications suggest continued prioritization of housing development with allocations potentially exceeding 2025 levels.
The Lagos Home Ownership Mortgage Scheme (LagosHOMS) continues to serve as a key mechanism for enabling access to government housing projects. Under the scheme, managed by the Lagos Mortgage Board, qualified applicants contribute up to 30% equity with the remaining balance repaid over 10 years. Monthly repayments are capped at 30% of income, making homeownership accessible to middle-income earners who might otherwise be priced out of the property market. The transparent draw process and strict prohibition on subletting ensure that allocated units serve their intended purpose of providing primary residences rather than becoming speculative investments.
In December 2024, the government signed a partnership agreement with Access Bank to develop the Odonla-Odugunyan housing estate in Ikorodu, spanning 9.98 hectares and comprising 704 units of modern 2-bedroom apartments across 44 blocks. This partnership exemplifies the government’s strategy of leveraging financial institution capacity and expertise to accelerate housing delivery while sharing development risks and responsibilities. Similar partnerships with other commercial banks and development finance institutions are expected to be announced in 2026 as the state seeks to maintain momentum in housing construction.
The Lagos State Development and Property Corporation (LSDPC) plays a crucial complementary role in the state’s housing expansion strategy. Over the past six years, LSDPC completed 12 developments adding 710 homes to the housing stock. Currently, the corporation manages 25 projects expected to deliver an additional 2,415 housing units, contributing significantly to the 14,000-unit target. With 4,052 homes currently under construction and another 2,224 in the planning phase, LSDPC’s pipeline demonstrates the scale and continuity of housing development efforts across multiple administrations.
Permanent Secretary of the Ministry of Housing, Engr. Abdulhafis Toriola, emphasized during a New Year prayer session with management and staff that the ministry reaffirmed its commitment to ensuring more Lagosians have access to decent, safe, sustainable and affordable housing. He stressed the importance of core values including diligence, fairness and integrity in public service, urging staff to approach their duties with commitment and a sense of purpose. This emphasis on institutional values reflects recognition that delivering on ambitious housing targets requires not just funding and partnerships but also professional excellence and ethical conduct from public servants.
The geographical distribution of housing projects across Lagos’ five divisions ensures that development benefits reach all parts of the state rather than concentrating in traditionally favored areas. Projects in Badagry, Epe, Ikorodu, Alimosho, and Eti-Osa divisions address demand across diverse communities with varying income levels and housing preferences. The LagosHOMS Ajara project in Badagry Local Government comprises 420 housing units, while the Epe Housing Scheme at Itamarun will deliver 112 units, both contributing to decentralized urban development that reduces pressure on the state’s congested central areas.
In addressing the housing deficit more comprehensively, the state government is also intensifying efforts to tackle abandoned buildings across Lagos. According to Permanent Secretary Toriola, the government will leverage existing laws including the Lagos State Real Estate Regulatory Authority (LASRERA) Law to intervene in the completion of abandoned properties. This regulatory intervention aims to increase housing stock, improve the urban landscape, and enhance public safety by eliminating structures that become havens for criminal activities or environmental hazards. The approach recognizes that addressing housing shortage requires not only new construction but also bringing existing incomplete or abandoned structures back into productive use.
Governor Sanwo-Olu has emphasized that the housing policy in Lagos extends beyond merely providing shelter to encompass driving inclusive development, enhancing social stability, and fostering long-term economic growth. During the World Congress of the International Real Estate Federation, the governor articulated how housing development stimulates economic activity through construction employment, materials supply chains, financial services, property management, and associated retail and service businesses. By positioning housing as an economic development tool rather than solely a social welfare provision, the administration has built broader support for sustained investment in residential construction.
The successful delivery of 21 housing estates across Lagos’ five administrative divisions since 2019 provides a track record that lends credibility to the 2026 expansion plans. Recently commissioned projects include the Akinsanya Sunny Ajose and Abraham Adesanya Housing Projects (Parcels A and B), and the 270-unit Egan-Igando Mixed Housing Estate (Cluster 1), which was the 21st estate delivered under the current administration. These completions demonstrate capacity to move projects from planning through construction to handover, though challenges including construction delays, cost overruns, and allocation disputes have occasionally marred otherwise successful developments.
As Lagos pursues its expanded housing development plans for 2026, the broader context includes rapid population growth, urbanization pressures, and evolving housing preferences among residents. With Lagos’ population exceeding 20 million and growing at approximately 3% annually, the state must deliver roughly 200,000 new housing units annually just to maintain current deficit levels, meaning that even the ambitious 14,000-unit target represents a fraction of actual need. This reality underscores that government housing programmes, while valuable, cannot alone solve Lagos’ housing crisis without parallel efforts to enable greater private sector participation, improve access to mortgage financing, streamline land registration and building approval processes, and create regulatory environments that incentivize rather than obstruct housing development.
