On January 19, 2026, the Lagos State Executive Council approved a historic ₦200 billion fund dedicated to slum redevelopment across the state. This is the single largest housing initiative ever launched by any Nigerian state government.
The fund targets the redevelopment of major slum areas — most notably Makoko, Ajegunle, Iwaya, Orile, and Bariga — with a goal of delivering 25,000 new affordable housing units by 2030, starting with the first phase of 8,000 units in 2026–2027.
Core Structure of the ₦200B Slum Redevelopment Fund
- Funding Breakdown
- ₦120B from state budget & infrastructure bonds
- ₦50B from development partners (World Bank, AfDB, private equity)
- ₦30B from private sector via PPP commitments
- Financing Model for Developers
- Subsidized interest rate: 5–8% fixed for qualifying PPP partners (vs market 22–26%)
- Tenor: 15–20 years
- Equity contribution: 20–30% (state covers land & basic infrastructure)
- Offtake guarantee: Lagos State pre-commits to buy-back 20–30% of units for civil servants at controlled prices
- Unit Pricing & Target Beneficiaries
- 1-bedroom: ₦8M–₦12M
- 2-bedroom: ₦15M–₦22M
- 3-bedroom: ₦25M–₦35M
- Priority allocation: 60% to current slum residents (with relocation support), 30% to civil servants, 10% open market
- Timelines & Phased Rollout
- Q1–Q2 2026: Makoko pilot phase (2,500 units) groundbreaking
- Q3–Q4 2026: Ajegunle & Bariga Phase 1 (3,500 units)
- 2027: Iwaya, Orile, full-scale rollout
- Completion target: 8,000 units by end of 2027, 25,000 by 2030
- Investor & Developer Opportunities in 2026
- PPP Partnership Entry: Developers can apply for funding allocation (minimum ₦5B commitment) via Lagos State PPP Office. Approved partners get land at no cost + subsidized financing.
- Offtake & Pre-Sale: State guaranteed purchase of 20–30% units creates instant liquidity for developers.
- Private Investment Angle: High-net-worth individuals & funds can participate via fractional debt/equity in PPP consortia (minimum ₦50M entry, 12–18% projected IRR).
- Secondary Market Flip: Early off-plan units in pilot phases expected to appreciate 25–40% by handover due to state-backed infrastructure.
Key Benefits for the Market
- Addresses Lagos’ 3-million-unit housing deficit
- Reduces informal settlements that currently occupy 70% of prime waterfront land
- Creates 150,000+ direct & indirect jobs during construction
- Improves property values in adjacent areas by 15–25% (spillover effect)
Risks & Challenges
- Execution risk: Past state projects have faced delays (mitigated by PPP structure & World Bank oversight)
- Community relocation: Potential resistance in Makoko (state promises 1:1 replacement + cash compensation)
- Fraud exposure: High-value PPPs attract syndicates (mitigated by EFCC monitoring & blockchain title requirement)
How to Position as an Investor/Developer in Q1 2026
- Developers: Submit PPP expression of interest by February 28, 2026 (via lagosstate.gov.ng/ppp).
- Investors: Monitor pre-launch off-plan units in Makoko pilot (expected Q2 pricing ₦12–18M for 2-bed).
- Everyone: Use the new National Digital Property Registry (NDPR) for title verification (mandatory from March 1, 2026).
This fund is not just a social program — it’s a massive value-unlocking catalyst for Lagos real estate. The next 18–24 months will see significant appreciation in redeveloped zones and surrounding areas.
Disclaimer: This information is for general purposes only and not legal advice. Consult a qualified real estate lawyer for guidance.
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