Lagos targets increased revenue from waterfront development 

…Flags economic gains of Odogun, other project

The Lagos State Government has taken a step to significantly boost its revenuers from waterfront developments with the introduction of a new revenue-sharing formula between the government and private island developers.

Dayo Alebiosu, the state Commissioner for Waterfront Infrastructure Development, disclosed this while reviewing the ministry’s activities in 2025 and outlining projections for 2026.

According to Alebiosu, the new policy replaces the former system of outright, one-off payments for reclaimed land with a more sustainable profit-sharing arrangement that ensures the state benefits continuously from the long-term value of waterfront developments.

“In the past, a company could reclaim 100 hectares, pay the government maybe N5 billion, and everyone would think the government had made money. But years later, you discover that just two plots from that land could sell for 9 billion,” he explained.

He cited an example where land initially valued at about N1 billion per 1,000 square metres rose to N4.5 billion within two years, prompting a rethink of the government’s approach.

“Rather than overburden developers with heavy upfront costs, we now collect administrative fees and go into a sharing ratio. The more they earn, the more Lagos earns, and the more infrastructure we can deliver across the state,” Alebiosu said.

The commissioner noted that 2025 activities were largely driven by the Lagos State Waterfront Infrastructure Development Summit, which brought together stakeholders to address challenges in the sector, particularly illegal dredging openly.

One major innovation introduced was the use of floating pontoons for jetties, deployed for the first time at Agboyi-Ketu and six other locations.

“We introduced floating pontoons because of their long-life guarantee. We want to see how they interact with our waters before expanding them further,” he said, adding that plans for expansion and jetty rehabilitation are being aligned with budget approvals at the Lagos State House of Assembly.

Alebiosu stressed that the new sharing formula also supports the administration’s housing agenda, as island schemes are being structured for completion within the current tenure.

Projects such as Orange Island and Graceville were highlighted as key developments with strong delivery potential, driven by collaboration between government and private proponents.

Of particular economic significance are the Odogun Waterfront and Oworonshoki Waterfront projects in Kosofe Local Government Area.

The Odogun Waterfront, according to the commissioner, is designed to deliver about 4,000 housing units, with all preparatory processes completed and the state awaiting final contract execution.

“Once construction starts, the entire area will become vibrant. Construction sites generate massive economic activity — artisans, suppliers, transporters, food vendors — and this is 4,000 housing units in one location,” he said.

He added that the project will stimulate local employment, increase land value, expand the tax base, and drive ancillary businesses across Kosofe and adjoining communities.

Similarly, the recently approved Oworonshoki Waterfront is expected to unlock new economic opportunities. Alebiosu revealed that the land, reclaimed during a previous administration, had faced threats from illegal sand theft before the current government intervened.

“We had to move in fast to prevent reclaimed land from turning back into water,” he said.

Looking ahead to 2026, Alebiosu expressed optimism that the combination of infrastructure upgrades, housing delivery, and the new island revenue-sharing model would deepen Lagos State’s internally generated revenue while promoting orderly waterfront development.

“The more value these islands generate, the more Lagos benefits. That translates directly into roads, housing, jetties, and improved quality of life for our people,” he said.

With projects at Odogun and Oworonshoki set to reshape Kosofe’s waterfront economy, the commissioner maintained that Lagos is positioning its coastal assets not just as real estate ventures, but as long-term engines of inclusive growth for the state.

SENIOR ANALYST - LABOUR/LAGOS STATE

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