The Lagos State government has approved an ambitious N3.366 trillion budget for 2025, with 62% of the funds earmarked for infrastructure development.
Signed into law by Governor Babajide Sanwo-Olu, the budget is structured around five strategic pillars: Infrastructure Sustainability, Economic Diversification, Social Inclusion and Human Capital Development, Environmental Sustainability, and Governance and Institutional Reforms.
Analysts view the emphasis on infrastructure as a significant step toward addressing Lagos’ urbanization challenges, housing deficit, and transportation inefficiencies. The state’s high urbanization rate and growing population, now estimated at 20 million, make such investments crucial.
The governor has announced plans to construct several kilometers of roads across Lagos’ 20 local government areas and 37 Local Council Development Areas (LCDAs). These efforts aim to open up the hinterlands, encouraging development and easing pressure on the city center.
Infrastructure as a Catalyst for Housing
Lagos’ inadequate road network has long hindered housing development in suburban areas. Many developers avoid acquiring land in these locations due to poor accessibility. Similarly, residents are reluctant to buy homes in areas far from work or business hubs, often choosing to rent closer to the city.
Experts note that improved infrastructure could change this narrative. By enhancing connectivity, the budget creates opportunities for real estate development in previously inaccessible areas, offering affordable housing options and reducing urban congestion.
Adetokunmbo Ajayi, CEO of Propertygate Investment and Development Company, highlights that land in suburban Lagos remains underutilized due to poor road access. “Improved infrastructure will make these areas attractive for both developers and homebuyers,” he said.
Long-Term Benefits
Investments in infrastructure could lead to higher homeownership rates, boosting social security and increasing government revenue through property taxes and tenement rates. Public-Private Partnership (PPP) investments are expected to play a vital role, potentially reducing infrastructure costs by 30%.
The budget’s infrastructure focus is also anticipated to improve Lagos’ housing supply, attract real estate investors, and decongest overcrowded areas. This could drive new town developments, enhance transit premiums, and foster economic growth.
With disciplined implementation and strong revenue performance, the Lagos 2025 budget has the potential to redefine housing opportunities, creating a win-win for the government and residents alike.
