The Lagos State Government’s recent classification of 176 estates as “illegal” has sent shockwaves through the real estate market, leaving residents fearful and investors jittery, while developers count heavy losses.
The Real Estate Developers Association of Nigeria (REDAN), in a letter to the state government, expressed deep concern over the announcement, describing it as a devastating blow to the industry.
“It came as a rude shock when over 170 of our members were publicly listed as not having the requisite documents to provide sustainable housing,” REDAN stated.
“This blanket statement has traumatised developers, created panic among residents, and shaken investor confidence, resulting in significant revenue losses for the sector and the state.”
The estates in question are mostly located in Eti-Osa, Ajah, Ibeju-Lekki, and Epe.
Authorities claim the properties lack proper layout approvals and gave owners 21 days to regularise their documents or face closure.
According to Permanent Secretary Oluwole Sotire, the developments undermine the state’s sustainable development goals by operating without approved layouts. Commissioner for Physical Planning and Urban Development, Olumide Oluyinka, defended the move, stating that while some estates have partial approvals, others have none, and some are built on land zoned for agriculture, industry, or other non-residential purposes.
However, developers insist the process for obtaining approvals is unnecessarily cumbersome and accuse officials of carelessness, unprofessional conduct, and even hypocrisy.
One senior director at Gracias Global Estate, Ibeju-Lekki, blasted the government’s choice of words:
“Labeling estates as ‘illegal,’ including some sold by the government itself, is a blunder. It’s harsh, especially at a time when real estate companies are already battling reputational damage from scammers. Investigations should have been thorough before releasing such a list.”
She also lamented that some of their properties were demolished for the Lekki coastal road project without state intervention, while others encroaching on the same route were spared.
Another affected realtor, Gideon Mfon Abasi, called the publication “very sad” and demanded accountability:
“How can you release an inaccurate list into the public domain? The officials involved should be sanctioned. Enough is enough professionalism must return to the system.”
REDAN is now pushing for a retraction of the “illegal” tag and a more collaborative approach between government and developers to avoid further damage to Lagos’s booming real estate sector.
