In many developing cities, the acquisition of urban land occurs through either formal or informal means. While the informal sector offers a significant portion of land, its complex mechanisms often elude documentation and understanding, often leading to their oversight in developed nations. This study investigates the multifaceted dimensions of informality, spanning social, economic, spatial, and environmental aspects, encompassing neighborhoods, settlements, markets, employment, and business activities. Focusing on Akure, Nigeria, where a substantial proportion of urban households reside in informal settlements due to exclusion from formal land management systems, this research underscores the prevalence of informal land acquisition, particularly in rapidly urbanizing regions. Past and present development patterns within Akure are intrinsically linked to land administration laws. Customary laws historically guided land administration, granting equal access rights while designating a family head or community chief as the trustee. The 1978 Land Use Act subsequently vested land in Nigerian governors, who grant access through a 'right of occupancy'. However, this transition has generated controversies, especially in urban areas with high urbanization rates, such as Akure. The city's role as an agricultural trade hub amplifies pressure on land resources due to rural-urban migration trends. This paper focuses on the environmental challenges stemming from informal land acquisition, using Akure as a case study. Informal land acquisition primarily occurs among rural immigrants seeking land for subsistence. The stringent formal housing acquisition process further perpetuates informal land acquisition. Consequently, unplanned and uncontrolled developments arise, lacking essential infrastructural facilities that are crucial for healthy living. Through an analysis of the Akure case, this study unravels the intricate nexus between informal land delivery and environmental challenges in Nigeria. By shedding light on this complex interplay, it aims to provide insights for policymakers and urban planners to address the environmental consequences of informal land acquisition, thereby fostering sustainable urban development.