The Housing Development Advocacy Network (HDAN) has called for reforms to Lagos State’s building approval regime days after a DevReporting’s special report revealed how government low-cost housing schemes remain unaffordable for most residents despite billions of naira in public investment.

In a statement signed by its Executive Director, Festus Adebayo, HDAN expressed concern over reports that Lagos generated about ₦80 billion from building approvals in 2025, arguing that excessive regulatory costs ultimately increase the price of housing because developers pass the burden on to homebuyers and tenants.

The call represents one of the first major public policy responses linked to the findings of the housing report, which was facilitated by DevReporting in partnership with the Pro-Poor Development Media Network (PDM-Network) and supported by the African Cities Research Consortium (ACRC).

Warning over affordability

According to HDAN, while the government requires revenue to support infrastructure and urban management, housing policies should be designed primarily to expand access to affordable homes rather than serve as revenue-generation mechanisms.

The organisation warned that excessive charges associated with building approvals, land administration, infrastructure levies and regulatory processes risk making accommodation increasingly unaffordable for ordinary residents.

It also cautioned that high compliance costs and administrative bottlenecks could discourage affordable housing development, slow housing delivery and push some developers toward informal and unapproved construction.

“When formal compliance becomes too costly or too slow, some actors inevitably move outside the system. That is not good for the government, not good for investors and certainly not good for urban planning,” the group stated.

Calls for reforms

As part of its recommendations, HDAN urged the Lagos State Government to review approval charges and related development fees to ensure they do not undermine housing affordability.

The group also called for the simplification of approval procedures, reduction in project timelines and removal of regulatory bottlenecks that delay construction and inflate costs.

In addition, it advocated targeted incentives and concessions for affordable housing developers and social housing projects, including fee waivers and policy measures designed to encourage investment in low-cost housing.

According to the organisation, “Lagos can pursue orderly development without pricing housing beyond the reach of residents. Regulation and affordability are not opposing goals. Investor confidence and social inclusion can reinforce one another when policy is designed with a long-term vision.”

What the housing report found

The DevReporting special report examined public housing schemes, mortgage conditions, procurement records and affordability data across Lagos. It found that while the state has invested billions of naira in housing projects, many units remain priced far beyond the reach of the low-income residents they were intended to serve.

At some government estates reviewed during the investigation, two-bedroom and three-bedroom units required monthly repayments that significantly exceeded the earnings of many workers in the informal economy and low-income households.

At Egan-Igando Estate, a two-bedroom flat costs ₦12.5 million and requires monthly repayments of about ₦129,000, meaning a buyer needs an estimated monthly income of ₦430,000. For a worker earning ₦100,000 monthly, the repayment would consume 129 per cent of income, while only about 2.5 per cent of Lagos workers can afford the state’s current “low-cost” housing schemes.

The report also highlighted a widening gap between housing supply and demand. Despite increased housing delivery in recent years, the number of units produced remains a fraction of the city’s annual housing needs, leaving millions of residents without access to affordable accommodation.

It concluded that while government housing programmes may offer value to middle-income earners, they continue to exclude a substantial proportion of Lagos residents.

Ministry acknowledges report

Reacting to the findings, the Head of Information at the Lagos State Ministry of Housing, Ganiu Lawal, described the investigation as fair and said it would serve as a useful reference for future leadership and policy discussions.

Mr Lawal, however, argued that the benefits of government housing projects extend beyond the units delivered directly by the state.

“The presence of government estates is a motivation for private real estate developers, and this equally increases housing stock,” he said.

Impact

DevReporting’s Team Lead/Editor-in-Chief, Mojeed Alabi, said the response from HDAN demonstrates how evidence-based journalism can contribute to public policy discussions.

“The concerns raised by HDAN mirror issues raised in the housing report and demonstrate that housing affordability is no longer just a media discussion but a matter attracting attention from key stakeholders in the housing sector,” he said.

Mr Alabi added that the objective of the DevReporting-ACRC partnership is to ensure that evidence generated through rigorous reporting informs conversations, decisions and reforms around critical urban development challenges.

“The response generated by this investigation shows that housing affordability remains one of the most pressing development issues facing Lagos and deserves greater attention from policymakers, regulators and industry stakeholders,” he said.