More investors may lose their assets along the Lagos-Calabar coastal corridor following the federal government?s warning that it will revoke all land approvals within the highway setback.

There are also possibilities of series of litigations to be instituted by investors and landowners who have genuine approvals and proper documentation on their property.

At the very beginning of the project, many investors lost their assets. Landmark Group, a real estate developer, whose Beach Resort valued at $200 million was demolished, readily comes to mind.

Though some stakeholders say the government?s action will help to sanitise the ?madness? going along lagoon coastline or shoreline, especially in Lagos, others are of the view that the action, if carried out, will not bode well with real estate and construction sectors.

?That warning is in bad taste and if carried out and not handled transparently, it could stall ongoing projects, disrupt investment plans, and erode confidence in coastal property development,? the stakeholders said.

Makinde Jolaosho, a property lawyer, told BusinessDay that those who have built without approvals will lose their investments, stressing that the federal government is the highest authority in the land and their powers supersede that of the states.

Jolaosho noted that the affected governors understand and appreciate that the coastal road project, despite all the opposition, is beneficial to the economic development of any state. He said that proper communication reduces the volume of negative issues and controversies that have followed the coastal road development.

An estate surveyor and valuer, who did not want his name mentioned, said that the federal government has the right to revoke properties along federal highways, especially if they were allocated without proper authorisation or in violation of existing regulations.

According to him, President Tinubu?s recent statement addressed unauthorised developments along Lagos? coastline, which have led to community displacement, increased risk of coastal erosion, flooding, and biodiversity loss.

According to the estate surveyor and valuer, investment loss along the affected axis could be significant as there will be decreased property value, including increased uncertainty, which may deter potential investors from putting money in properties along federal highways.

President Bola Tinubu had at the commissioning of Section 1, Phase 1 of the 750km Lagos Calabar coastal highway in Lagos on Saturday, May 31, 2025, said the federal government was going to revoke all land approvals within the setback of the highway.

The president also warned state governors, with emphasis on Lagos, to stop fresh planning approvals for illegal islands, an action real estate stakeholders interpreted as the federal government overstepping its bounds.

Citing the provisions of the Land Use Act of 1978 which states that only state governors have the authority to grant and revoke rights of occupancy over land within their states, the stakeholders faulted President Tinubu?s pronouncement and warning.

But a real estate developer, who pleaded anonymity, told BusinessDay that the governments, especially Lagos, must have played into the federal government?s hands. He explained that the federal government is relying on Section 49 of the Act to use the property.

The developer, who is also a lawyer, explained further that this section exempts land vested in the federal government or its agencies or occupied by the federal government or any of its agencies before the commencement of the Act from the control of state governors. This means federal lands remain under the federal government or its agencies? control.

He also cited the Lands (Title Vesting) Act of 1993, which states that all land within 100 metres of the 1967 shorelines, as well as reclaimed land near the sea, lagoon, or ocean, is vested in the federal government.

?The federal government is over-stepping its bounds, and I believe, for the selfish interest of its officials, but unfortunately, Lagos State government played into FG?s hands.

?For eight years, Governor Babatunde Fashola did not grant a single excision on the Lagoon; Akinwunmi Ambode did not grant any in four years. But in the last five years, over 10 excisions have been granted on the Lagos Lagoon. So, the president knows what he was talking about,? the anonymous developer noted.

The developer advised investors to be cautious and do their due diligence to avoid loss of investment that could be very depressing and discouraging. (BusinessDay)

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