Ikoyi Housing Stock Constricts as Federal Government Takes Possession of Prime Assets
Federal Government Seizes Prime Ikoyi Properties Following High Court Ruling
The Federal Government of Nigeria has formally taken possession of several high value residential properties in Ikoyi, Lagos, following a long-standing legal battle. The exercise, which commenced on 28 January 2026, was carried out pursuant to a 2022 judgment delivered by Justice A.M. Lawal of the High Court of Lagos State. The action has led to the immediate displacement of several residents and a further reduction in the available housing stock within the prime Ikoyi axis.
Execution of Court Judgment
The properties under contention were primarily located on George Street, Mobolaji Johnson Avenue, and Second Avenue. Specifically, the government-targeted assets include Nos 1, 2, and 5 George Street. Observations at the scene revealed that No 1, which had been undergoing significant high-rise redevelopment, was among those seized. Another property, No 2, bore markings designating it as a "Military Zone," while No 5, a two floor mult family unit, was also marked for possession.
The legal basis for the seizure is the suit Federal Government of Nigeria Vs The Unknown Occupier(s) (ID/2643LMW/2020). Official notices posted at the sites stated that the properties were taken over by the Asset Recovery and Management Unit of the Federal Ministry of Justice.
Impact on Residents and the Real Estate Market
The enforcement exercise, supported by a detachment of Mobile Police, caused significant disruption for occupants. While some residents expressed hope for a political solution, others were seen frantically moving belongings. A government official, speaking on the condition of anonymity, indicated that the possession was necessary due to the "adamant" refusal of occupiers to vacate despite the 2022 ruling.
The recovery of these assets is part of a wider federal mandate to reclaim government-owned lands and buildings across Lagos. The exercise is expected to extend toward Bank Road and the Old Federal Secretariat Complex near Obalende.
Economic Context and Market Outlook
This constriction of the Ikoyi housing market comes at a time when property values in the area have seen unprecedented growth, with land prices reaching as high as ₦3.5 million per square metre. The removal of these units from the private rental and sales market whether temporary or permanent likely places additional pressure on the remaining supply in one of Africa's most expensive real estate sub-markets.
The Federal Ministry of Justice has directed all enquiries regarding the seized properties to its Asset Recovery and Management Unit in Abuja. As the government continues its reclamation efforts, stakeholders in the real estate sector remain cautious about the long-term impact on investor confidence and the future redevelopment of these prime federal assets.
