Last week’s description of 176 estates as illegal by Lagos State government, has thrown residents into panic and created fears in investors as real estate developers are counting the cost of the action.

Real Estate Developers Association of Nigeria (REDAN) in a letter to the state government, expressed worries.

The association said: “It comes as a rude shock to REDAN members when the Lagos State Government lists over 170 members as not having or suggesting that its members’ estates do not have the requisite documents to provide sustainable and safe housing for citizens of Lagos State.

“REDAN members, many of whom are long-standing, internationally verified and respected estate developers and professionals, have been negatively affected by the public notice, which suggests that all the over 170 estate developments in Lagos State listed have no proper documentation, leading the residents in these estates and investors to panic.

“REDAN members have been traumatised by this notice, which has not only caused some doubt in the minds of investors but has led to a significant decline in business for the real estate sector, which in turn leads to further losses of revenue for the state.”

The 176 estates listed by the state government are predominantly located in the Eti-Osa, Ajah, Ibeju-Lekki, and Epe axis of the state.

The government said the estates were deemed illegal due to their failure to obtain layout approvals. It gave the owners of the estates 21 days to regularise their documents or risk their closure.

According to the Permanent Secretary, Office of Physical Planning, Oluwole Sotire, the estates compromised the state’s sustainable development ethos and T.H.E.M.E.S Plus Agenda by operating without approved layout.

At the weekend, Commissioner for Physical Planning and Urban Development Olumide Oluyinka defended the action, saying some of the estates have between 50 to 70 per cent approvals while others have none or are being developed on places designated for agricultural, industries and other purposes.

He said: “In March 2024, we observed that a lot of developers have purchased land from Omoniles to develop estates, though the government zoned the lands for different purposes such as agriculture, recreation, residential, infrastructure, etc.

“In addition, we noted that diasporan Nigerians and those living here have invested money in the wrong land and as a responsible government, we needed to act fast to avoid our people losing their hard-earned money.

“Some developers just acquired land and started selling with no approval whatsoever from the government, while some have gotten only provincial approval of between 50 and 70 per cent others are developing or selling land with no approval. If you do something wrong, then it is illegal as far as the government is concerned.”

Some of the developers and realtors who spoke with The Nation on the issue, accused the state officials of making the processes for layout approvals cumbersome.

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Apart from alleging that the officials were careless and unprofessional in compiling the list, the developers and realtors said they (officials) had unwittingly told the public that the government sells and allocates land illegally.

One of them called for the withdrawal of the word ‘’illegal’’ by the ministry, while another said he might go to court if the government made good the threat to seal the estates.

A Director in Gracias Global Estate, Ikegun, Ibeju-Lekki, who did not want her name in print, said: “This particular issue is not a good one, especially because whoever was in charge didn’t do their homework well before putting the list out to the public.

By using the word ‘illegal’ for several estates, including the ones the government itself sold, is a total blunder.

“I understand the importance of layout approval, but in my humble opinion, I feel that the government using the phrase ‘Illegal’ to classify several real estate companies because they want people to do layout approval is a bit harsh, especially at this period, when several real estate companies are being labelled scammers.

“In my humble opinion, the government should do their investigations well instead of tagging several real estate companies as illegal.”

She added that some of their properties affected by the new coastal road alignment in Lekki were demolished by the Federal Ministry of Works for encroachment without the state government coming to their aid.

The director said: “The coastal road diversion remains a mighty blow, because people who encroached on the Gazette alignment were left out. They displaced those of us who have been doing the right thing.”

A realtor whose company also owns one of the listed estates, Gideon Mfon Abasi, said: “The publication is very sad and the issue must be addressed frontally.

“The officers involved ought to be sanctioned for bringing shame and disrepute to the Lagos State government. How on earth can you publish a document that is not correct and put it in the public domain?

“Is it not sad that the custodian of Information and Data can no longer be relied upon to give accurate information? The officers in charge are not even remorseful over their misdeeds. They are carrying on business as usual”.

Mfon called on REDAN to bring to an end the acts of carelessness by state officials who are doing more harm than good to the system.

“Enough is enough, and it is time we demand professionalism and better service from these government officials,” he added. (The Nation)