Investors Alarmed by Federal Crackdown on Lagos–Calabar Highway Setback Rules
A recent federal enforcement of setback regulations along the Lagos–Calabar Coastal Highway is causing worry among investors and developers in Nigeria's real estate sector. Authorities are strictly implementing right-of-way and setback rules, which define how close properties can be to this major highway. Investors fear this could lead to demolitions, legal problems, and financial losses, especially for those unfamiliar with the regulations.
Historically, land buyers in Nigeria have had to independently verify compliance with land laws, but this federal move places responsibility firmly on property sellers and local authorities. According to existing laws, properties within 100 meters of the coastline fall under federal government jurisdiction, a position recently reinforced by Nigeria’s Supreme Court.
While state governments usually handle local planning issues, the federal government’s involvement now means properties without clear federal approval could face enforcement actions, potentially including demolition without proper compensation.
Experts like Dr. Daramola Olapade advise investors to carefully verify property ownership documents, conduct precise surveys, and consult both state and federal agencies before making decisions. Even properties outside immediate enforcement zones could lose value due to uncertainties about approval processes and overlapping authority.
Observers believe that given the current political alignment, a negotiated solution might be achievable. President Tinubu’s experience as a former Lagos governor might help create balanced agreements between infrastructure development needs and property owners’ rights. Industry leaders recommend private negotiations and clear, transparent communication from the government to avoid market panic.
Environmental groups support the government's enforcement, emphasizing the need to protect coastal areas from erosion and flooding. However, they caution that abrupt legal actions without clear and fair procedures could scare away potential investors. Critics have also suggested that the current enforcement policy might be unevenly applied, targeting certain areas more than others, potentially leading to political controversies.
To address these challenges, stakeholders propose the following steps:
Set up an independent technical team comprising urban planners, legal advisors, environmental scientists, and engineers to clearly define setback boundaries.
Create a joint committee within Nigeria’s National Assembly to unify federal and state approaches to coastal management.
Ensure transparent processes, including proper notifications, fair compensation, and relocation support for affected property owners.
Without these measures, Nigeria risks undermining investor confidence and harming the reputation of its growing real estate market.