Lagos Government Pushes New Town Development to Ease Housing Crunch

Lagos State is leaning into New Town Development as a strategic response to decades of rapid growth, overcrowding, and strained infrastructure. The plan is simple in concept and complex in execution: create well-planned, serviced urban centers outside the old city core so Lagos can grow in a controlled, livable way rather than expand as a chaotic sprawl.

The New Towns Development Authority (NTDA), established in 1981, leads this initiative. Its goal is to develop self-contained, sustainable communities with proper infrastructure, housing, and social amenities rather than allowing unplanned sprawl that has characterized parts of Lagos for decades. NTDA’s stated mission is to “develop new towns with functional infrastructure” and to manage planned growth beyond the already congested metropolitan zones.

As NTDA’s website explains, Lagos is small in land area but huge in population, and planned new towns are meant to “open up the semi-rural settings” while providing roads, utilities, housing, schools, and health centers where they are most needed.

Photo by Ben Iwara on Unsplash

Why now? 

Population pressure, limited land, and repeated environmental crises have made new towns necessary. As Lagos State Commissioner for Physical Planning and Urban Development, Dr. Oluyinka Olumide told a recent real estate summit:

“Well-planned new towns will transform communities by improving housing, infrastructure, and essential services. We are also working with Ogun and Ondo states to strengthen regional integration that will ease the movement of people and support more balanced development.”

Put plainly: Lagos is bursting at the seams, and the state wants alternative centers where people can live, work, and access services without daily gridlock.

Short history and earlier plans

The idea of planned “new towns” in Lagos is not new. Discussions and proposals date back years; NTDA itself was created in 1981 for this reason, and high-level plans have been floated in waves (2015 plans sketched seven schemes across Lekki, Badagry, Ikorodu, and Epe). But political will, funding, and private-sector interest have waxed and waned over time. What’s different now is heightened urgency (climate risk, infrastructure strain) and stronger private-sector buy-in from master planners and developers.

Who’s building? 

Simple answer: Government and private developers. This is a public-private play. The state sets the planning framework and approvals; developers bring capital, delivery, and marketing.

Notable private projects that illustrate the new-town model:

• Isimi Lagos (LandWey): Pitched as an eco-city and “Future City,” LandWey’s CEO said the project demonstrates their commitment to sustainable, long-term development:

  “Isimi Lagos is a prime example of our vision for sustainable living,” LandWey’s leadership has said in press statements.

• Lagos New Town (Mixta Africa): A master-planned district along the Lekki-Epe corridor, conceived as mixed-use with housing across price bands and infrastructure to support tens of thousands of residents.

Developers argue that master planning, serviced plots, and integrated infrastructure will attract residents who now face long commutes and poor services in central Lagos.

What will the new towns include?

A proper new town is more than houses. It is planned to include:

• road networks and public transport links

• reliable water supply, drainage, and waste systems (flood mitigation is a top priority)

• power provisioning and digital connectivity

• social amenities: schools, hospitals, parks, community centres

• commercial zones, logistics, and job-creating facilities

Why the New Town development matters

At a UPDC real-estate summit, Prof. Franklin Ngwu of Lagos Business School explained the economic logic: new towns that combine housing, jobs, and services can lift productivity and reduce long commute costs. He urged developers to adopt “sustainability standards, modern technology, and transport systems that support livable communities.”

UPDC’s MD, Odunayo Ojo, added that the congestion on corridors such as Lekki–Epe “illustrates the limits of existing urban centers and underscores the need for new towns that can relieve pressure on residents and businesses.”

What problems do the new towns aim to solve?

• Decongestion of core Lagos (less traffic, shorter commutes)

• Housing supply created on planned, serviced land (reducing slums)

• Flood risk is reduced through modern drainage and land-use planning

• Regional development: connecting Lagos to neighbouring states for broader economic zones.

Challenges & risks

The state acknowledges obstacles:

• land acquisition disputes and compensation issues

• funding and financing gaps (public budgets are limited)

• encroachment and non-compliance with approved layouts

• risk of speculative land grabs and price inflation if governance is weak

NTDA and officials repeatedly stress that good governance, stakeholder engagement, and careful compensation are necessary; otherwise, new towns risk becoming planned parcels on paper rather than functioning communities.

What this means for investors & developers

• Investors: Opportunity for early land/plot plays, but due diligence is critical. Verify approvals, master plans, and infrastructure commitments.

• Developers: Projects that guarantee infrastructure, drainage, and transport links will sell better. Branded, well-managed estates will attract long-term buyers.

• Buyers: Buying into new towns is a long-term bet. Look for strong governance, phased delivery guarantees, and confirmed transport links.

What to watch next

• NTDA approvals and tender announcements (they post RFPs/EoIs for development works).

• Major developer partnerships (Mixta, LandWey, and UPDC announcements).

• Funding windows (public budgets, private investment vehicles, or funds like MREIF tying into housing finance).

• Infrastructure milestones (roads, power, drainage, and transport links that actually open).

Frequently Asked Questions.

Q: Where are the new towns proposed?
A: Growth corridors include Ibeju-Lekki, Badagry, Epe, and Ikorodu (historic proposals also referenced other zones). Developers’ projects tend to cluster along the Lekki-Epe due to port, refinery, and industrial corridor investments.

Q: Will new towns be expensive?
A: They will contain mixed offerings. Some master-planned projects claim units across price bands, from affordable to luxury, but early serviced land often appreciates quickly. Expect initial buys to be an investment play; cheaper, mass-housing components usually require government facilitation or subsidy.

Q: How long will it take?
A: New towns are multi-decade projects. Some phases can open within 3–5 years; full build-out (infrastructure, schools, operations) could take 10–20 years.

Q: Who enforces planning rules?
A: NTDA coordinates, but enforcement involves multiple agencies (Ministry of Physical Planning, LASRA/related bodies). Private developers also sign off on approved layouts and standards.

Q: How does this affect central Lagos homeowners?
A: In the short term, central districts may keep appreciating due to scarcity and amenities. Over the medium term, successful new towns could ease price pressure and offer alternatives for families and workers.