One of the most critical challenges facing the physical environment of the Lagos metropolis is the rapid degradation of peri-urban communities, specifically Okokomaiko. This settlement is currently characterized by a lack of basic "ekistic" convenience—the balance between human settlement and nature. Observations indicate that inadequate urban services, infrastructure deficits, pervasive poverty, and environmental pollution act as significant impediments to the community's socio-economic development. While sustainable development remains a primary concern for governments, NGOs, and global stakeholders, this study reveals that the existing conditions in Okokomaiko are functionally unsustainable. However, this paper argues that through the application of appropriate urban planning methodologies, these negative impacts can be mitigated. The objective of this study is to enumerate strategies for improving environmental quality, transforming current urban challenges into opportunities for achieving a sustainable physical environment in Okokomaiko.