In the 2025 budget, the Lagos State Government has allocated a significant N101.6 billion for housing and community amenities, reflecting an 81.69% increase from the N55.92 billion allocated in 2024.
This new allocation represents 3% of the state’s total budget of N3.366 trillion for 2025, highlighting the government’s commitment to addressing the growing housing deficit and enhancing community infrastructure amidst rapid urbanisation and internal migration.
Details of this allocation were made public in the recently released Lagos Economic Development Update (LEDU) 2025 report, compiled by the Economic Intelligence Department of the Lagos State Ministry of Economic Planning and Budget.
Although the budget was passed in January, the specifics of the housing allocation were disclosed later in the report.
The report emphasised that the substantial increase in funding is crucial for improving housing availability and community amenities in Lagos, which remains Nigeria’s most populous state.
It also outlined that the increased budget would support several key initiatives, including affordable housing projects, the expansion of public-private partnerships in real estate, and the upgrading of urban infrastructure to meet the growing demand.
In addition to focusing on urban renewal and affordable housing projects, the state has already undertaken several housing developments in 2024.
Notable projects included 444 housing units at Sangotedo Phase II, 420 units in Badagry, and ongoing units in Ibeshe Phase II. Other projects include two-bedroom flats in Egan-Igando, modern apartments at Rising Lagos, and a mixed development project at Greater Lagos LBIC/WGC Apartments in Amuwo Odofin. With the increased 2025 allocation, the government plans to complete these ongoing projects while expanding new affordable housing initiatives.
Public-private partnerships continue to play a significant role, as demonstrated by the Odonla-Odogunyan Housing Estate Project, developed in collaboration with Access Bank Plc. This project will provide 704 housing units across 44 blocks.
Furthermore, the Lagos State Government has launched two major programmes aimed at improving access to affordable housing: the Rent-to-Own Programme and the Lagos Home Ownership Mortgage Scheme (Lagos HOMS). The Rent-to-Own scheme allows first-time buyers to move in with just a 5% down payment, paying the balance as rent over 10 years, while the Lagos HOMS offers mortgage financing, requiring applicants to contribute up to 30% equity, with repayments spread over 10 years.
With these initiatives, the Lagos State Government is working to ensure equitable homeownership and address the growing housing needs of its residents.
