The conflict between the Lagos State government and Real Estate Developers over 176 estates that the government labelled “illegal” is not new. Rather, it reflects what urban researchers such as the African Cities Research Consortium (ACRC) have consistently highlighted: that the Lagos real estate and housing sector is caught in a vicious cycle of bureaucratic inefficiency, weak enforcement, informal practices, and desperate demand pressures.
When the Lagos State Government listed 176 illegal estates and handed their developers a 21-day ultimatum, it once again brought to the surface one of the most pressing urban crises of Nigeria’s commercial capital: the tension between rapid housing demand and the weak regulatory framework guiding real estate development.
The announcement, which came with warnings to prospective buyers to steer clear of the affected estates, has been met with mixed reactions. On one hand, the government insists the clampdown is necessary to restore order, prevent unsuspecting citizens from being duped, and enforce town planning regulations.
On the other hand, developers have pushed back, describing the move as unfair, arbitrary, and insensitive to the difficulties they face in securing development permits in the first place.
Lagos’ case against some of these estates is strong. Many of these developments are constructed without proper approval, often lacking essential elements such as drainage, road access, power infrastructure, and environmental safeguards. Some spring up on wetlands, flood-prone areas, or even government-acquired land meant for schools, hospitals, or public housing.
Such irregularities do not just inconvenience buyers; they create long-term urban risks. Every rainy season, Lagos suffers from widespread flooding, and urban planners often attribute the problem to blocked waterways, haphazard developments, and a disregard for environmental regulations. Illegal estates also leave government agencies unable to plan infrastructure investments, since layouts and population densities are not factored into masterplans.
By publishing the list of 176 estates and setting a 21-day ultimatum, the government argues that it is protecting the public and reasserting the rule of law. The state insists that due process exists for obtaining layout approval, land title, and building permits, and responsible developers should comply.
Yet, the developers’ anger also carries weight. Many accuse the state’s regulatory system of being deliberately cumbersome and exploitative. According to several accounts, securing layout approval can take years, with multiple agencies demanding overlapping documentation, unofficial payments, and frequent revisions.
Research findings from ACRC and other urban governance studies reinforce these claims. Developers, particularly small and medium operators, face an opaque and often politicised process of land allocation and approval. In some cases, documents are submitted and “lost” in the bureaucracy, while in others, developers are strung along with endless queries until projects stall.
Faced with these hurdles, many developers press ahead with construction, betting on the insatiable housing demand and hoping that their projects will later be “regularised” through political or financial negotiation. It is a high-stakes gamble, but one that the weak regulatory environment effectively encourages.
Caught between the state and developers are ordinary Nigerians, many of whom commit their life savings to land purchases or off-plan housing in these estates. Some are lured by attractive marketing, flexible payment plans, and assurances of future approval. Others, aware of the risks, still buy because options for affordable, approved housing are scarce.
The result is a cycle of disputes, demolitions, and litigation. Families are displaced, investments wiped out, and public trust in both government and developers eroded. For Lagos, a city of more than 20 million people, where housing demand grows daily, this represents not just a market failure but also a profound governance challenge.
The ACRC has documented similar trends in Lagos, pointing out that informal and illegal developments often emerge as rational responses to regulatory and market dysfunction. A striking case is the report that Lagos hosts more than 172 unregistered estates, developed outside formal approval channels.
Rather than seeing these estates only as criminal enterprises, researchers argue they are part of the broader housing ecosystem, filling gaps left by weak state housing delivery, unaffordable mortgages, and cumbersome planning processes. In other words, illegality is not just a choice; it is often the path of least resistance.
This insight suggests that Lagos’ current ultimatum, while valid, is only treating the symptoms, not the disease. Without reforming the systemic drivers of illegality, future lists of “illegal estates” will only grow longer. What Lagos needs is a multi-pronged approach that combines enforcement with structural reform. The goal should be to build a real estate ecosystem where compliance is easier and more profitable than illegality.
To curb this anomaly, the state must simplify and digitise the planning approval process, while developers should be able to track applications transparently, with clear timelines and reduced human interference. This will cut corruption, reduce costs, and encourage more developers to seek approval upfront.
Also, Lagos should establish and regularly update a public, accessible database of approved estates and layouts. Such transparency would empower buyers to verify claims before committing funds. This reduces fraud and protects the public. There should be collaboration with industry associations like the Real Estate Developers Association of Nigeria (REDAN) and the Nigerian Institution of Estate Surveyors and Valuers (NIESV). Urban research groups like ACRC can help craft evidence-based housing policies. This will ensure reforms are not just reactive but grounded in data and international best practices.
The demand for illegal estates is partly fuelled by the lack of affordable housing alternatives. Lagos must invest more in public housing, particularly for low-income residents; incentivise private developers to build low-and middle-income housing, and expand access to mortgage finance. Without addressing affordability, illegality will remain attractive.
Research underscores the importance of involving communities in urban planning. By engaging local stakeholders, residents, and civil society in estate approval and monitoring, the state can reduce resistance, encourage oversight, and improve compliance. Heavy-handed demolitions without credible alternatives will only deepen distrust and resentment.
Fixing Lagos’ real estate sector does not rest solely with the government. Developers must commit to ethical practices, resist the temptation to cut corners, and prioritise long-term trust over short-term profit. Buyers, too, must exercise due diligence, relying on verified information before investing.
Above all, the government must lead by creating a system that facilitates and rewards compliance, as well as penalises illegality. Selective enforcement, where politically connected developers get away while smaller players are punished, only breeds cynicism. The listing of 176 illegal estates and the 21-day ultimatum is a wake-up call, not just to developers but to policymakers, researchers, and citizens. It underscores the urgency of reforming a sector that sits at the heart of Lagos’ future.
As ACRC and other research initiatives have shown, the problem is not merely one of rogue developers or careless buyers. It is systemic, rooted in governance failures, policy gaps, and the mismatch between soaring housing demand and inadequate supply.
For Lagos to achieve its ambition of becoming a model African megacity, it must move beyond periodic crackdowns. It must build a real estate ecosystem where compliance is transparent, affordable, and efficient, where developers thrive ethically, and where residents can invest in homes without fear of demolition or fraud.
Credit:The Guardian