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Nairametrics
Home Sectors Real Estate and Construction

FG restricts Banana Island shoreline approvals under new regulatory framework 

Caleb Obiowo by Caleb Obiowo
February 7, 2026
in Real Estate and Construction, Sectors
FG restricts Banana Island shoreline approvals under new regulatory framework 
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The Federal Government has announced it will restrict new shoreline approvals and extensions in Banana Island beyond approved boundaries.

The disclosure was made on the official website of the Ministry of Housing and Urban Development on Friday.

The ministry said the decision follows recommendations from a tripartite inter-ministerial technical committee involving the ministry, the National Inland Waterways Authority (NIWA), and the Office of the Surveyor-General of the Federation (OSGoF).

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The new framework introduces stricter rules for shoreline applications and approvals, aiming to prevent encroachment, ensure compliance with statutory fees, and protect navigational channels.

What they are saying 

The ministry said Banana Island is a high-sensitivity zone, and no new approvals or extensions will exceed boundaries set by the ministry, NIWA, and OSGoF.

  • “For high-sensitivity locations, including Banana Island, no new approval or extension shall exceed boundaries jointly established by FMHUD, OSGoF, and NIWA. Strict compliance shall be enforced.” 

All existing shoreline grants will be reviewed, including new, active, dormant, and pending approvals.

  • “In accordance with earlier Presidential directives, any approval granted in previous years without evidence of payment of statutory assessed fees has been revoked.” 

The statement emphasizes that these measures are aimed at ensuring compliance, transparency, and proper management of shoreline developments.

New rules for shoreline applications and approvals 

Under the new framework, all shoreline applications must start with a Letter of Intent submitted to the Ministry of Housing and Urban Development. A joint inspection by the ministry and NIWA will follow.

  • Provisional allocations will rely on survey data jointly validated by FMHUD, NIWA, and OSGoF.
  • A 14-day processing timeline has been introduced for each stage of approval.
  • Provisional offer letters will now include expiration clauses, and non-compliance by officials or applicants will attract sanctions.
  • The new framework supersedes all previous directives and circulars on shoreline reclamation and allocations.

The ministry said these reforms aim to improve coordination, transparency, and sustainable management of Nigeria’s inland waterways and shorelines.

More insights 

The Federal Government has been addressing shoreline developments across Lagos for some time.

In December 2024, developers along the Lagos shoreline were given one month to regularize their projects or face revocation and demolition.

  • During a Lagos Lagoon inspection, Minister Arc. Ahmed Musa Dangiwa observed unauthorized sand-filling and constructions lacking proper federal titles.
  • The Federal Government retains control over shoreline titles, NIWA manages dredging permits, while Lagos State oversees physical development.
  • Authorities pledged to enforce compliance and restore order along the shoreline.

These measures reflect the government’s ongoing push to regulate shoreline developments and protect navigable waterways from unplanned expansion.

What you should know 

Investigations by Nairametrics show that reclamation along Lagos’ coastline is affecting waterfront properties, which command premium prices due to their exclusivity and scenic views.

  • New reclamation projects appearing between existing homes and the water are blocking views and may reduce property values.
  • Lagos’ land area has increased from 3,577 to 4,050 square kilometres, largely through wetland and lagoon reclamation.
  • Waterfront properties remain highly sought after, but unregulated developments threaten their value.

Reclamation projects are currently suspended across Lagos, including Ikoyi, Victoria Island, Lekki, Ajah, Ikorodu, Ojo, and Badagry, due to environmental and social risks.

The Federal and Lagos state governments are prioritizing oversight to ensure that shoreline reclamation is conducted responsibly and transparently.


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Caleb Obiowo

Caleb Obiowo

Caleb Obiowo is a graduate of Urban and Regional Planning from the University of Uyo. At Nairametrics, he covers transport and logistics in Nigeria, along with real estate, construction, and aviation. He focuses on delivering clear, easy-to-understand stories and often digs deeper into industry issues through conversations with key players.

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