Lagos Unveils New Waterfront Development Policy, Targets Long-Term Revenue Growth

The Lagos State Government has unveiled a new framework for waterfront developments aimed at boosting long-term revenue from the state’s vast coastal and island assets.
The Commissioner for Waterfront Infrastructure Development, Mr. Dayo Alebiosu, disclosed this on Saturday while reviewing the ministry’s achievements in 2025 and outlining projections for 2026.
According to Alebiosu, the new policy represents a major shift from the previous practice of collecting one-off payments for reclaimed land to a profit-sharing model that allows the state to benefit continuously from the rising value of its waterfront assets.
He explained that under the old arrangement, developers paid lump sums for large parcels of reclaimed land—payments that often failed to capture the true future worth of the assets.
“In the past, a company could reclaim 100 hectares, pay the government maybe N5 billion, and everyone would think the government had made money,” Alebiosu said. “Years later, you discover that just two plots from that land could sell for N9 billion.”
He cited instances where land initially valued at about N1 billion per 1,000 square metres appreciated to N4.5 billion within two years, stressing that such rapid value growth underscores the need for a more sustainable revenue approach.
Rather than placing heavy upfront financial burdens on developers, Alebiosu said the state now collects administrative fees and enters into revenue-sharing arrangements.
“The more they earn, the more Lagos earns, and the more infrastructure we can deliver across the state,” he noted.
The commissioner said the ministry’s activities in 2025 were largely driven by the Waterfront Infrastructure Development Summit, which brought together public and private sector stakeholders to address challenges within the sector, including illegal dredging.
He also revealed that the ministry introduced floating pontoons for jetties, deployed for the first time at Agboyi-Ketu and six other locations across the state.
“We introduced floating pontoons because of their long-life guarantee. We want to observe how they interact with our waters before expanding them further,” Alebiosu said, adding that plans for wider deployment are being aligned with the state’s 2026 budget.
Highlighting key projects, Alebiosu said developments such as Orange Island and Graceville have strong prospects for completion, while the Odogun and Oworonshoki waterfront projects in Kosofe Local Government Area are expected to deliver significant economic impact.
He disclosed that the Odogun Waterfront alone is projected to provide about 4,000 housing units.
“Once construction starts, the entire area will become vibrant. Construction sites will generate massive economic activity — artisans, suppliers, transporters and food vendors — and this is 4,000 housing units in one location,” he said.