The Lagos State Government generated approximately N80 billion in revenue from building approval applications in 2025.

The Commissioner for Physical Planning and Urban Development, Dr. Oluyinka Olumide, disclosed this on Friday during the 2026 Ministerial Briefing held in Lagos to mark the seventh anniversary of Governor Babajide Sanwo-Olu’s administration, according to The Punch.

Explaining the cost of obtaining building approvals, Olumide said the applicable charges vary depending on the size of the proposed development and its location within the state.

“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 further explained that all payments for building approvals are processed through designated banks, after which applicants are required to present proof of payment to the ministry before their approvals are 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 noted that inconsistencies or discrepancies in tax payments could delay the processing and issuance of building approval applications.

“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 also warned against construction under power lines and gas pipelines, stressing that any building erected outside approved plans would be subject to immediate demolition.

According to him, such violations leave the government with no option but swift enforcement action.

“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.

He added that distressed buildings could also be demolished without delay, noting that structures deemed unsafe or no longer fit for habitation would be removed immediately once assessed.

“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.