The Housing Development Advocacy Network (HDAN) has expressed concern over reports that the Lagos State government generated about N80 billion from building approvals last year.

In a statement signed by its Executive Director, Festus Adebayo, the organisation said such rising regulatory and development charges could worsen housing affordability challenges in the state.

The group stated that Lagos stands at a critical point in its urban development journey and must ensure that housing policies are designed to expand access to affordable homes rather than primarily serve as revenue-generation mechanisms.

According to the group, while the government requires revenue to support infrastructure and urban management, excessive charges associated with building approvals, land administration, infrastructure levies and regulatory processes ultimately increase the cost of housing delivery.

HDAN noted that developers often transfer these costs to homebuyers and tenants, thereby making accommodation more expensive for ordinary residents, especially low- and middle-income earners.

The group stressed that housing should be treated as essential infrastructure tied to economic productivity, public health, social stability and human dignity, rather than as a fiscal opportunity.

It acknowledged the importance of planning regulations and building approvals in ensuring safety, environmental protection, structural integrity and orderly urban development, but warned that the system risks distorting the housing market if it is perceived mainly as a revenue-generating tool.

According to HDAN, Lagos already ranks among the states with the highest land acquisition and construction costs in Nigeria, and additional regulatory expenses could discourage affordable housing projects, slow housing delivery and weaken investor confidence.

The organisation also cautioned that excessive approval charges and administrative bottlenecks may encourage the proliferation of informal and unapproved developments as some developers seek alternatives outside the formal regulatory system.

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

HDAN observed that Nigeria’s housing deficit remains severe, with Lagos accounting for a significant portion of the demand pressure due to rapid population growth and inadequate formal housing supply.

The group called for reforms aimed at balancing urban planning objectives with affordability and investment growth. HDAN urged the Lagos State government to review building approval charges and related development fees to ensure they do not undermine housing affordability.

It also advocated the simplification of approval processes, reduction in project timelines and removal of regulatory bottlenecks that delay construction and inflate costs.

The organisation further recommended targeted incentives and concessions for affordable housing developers and social housing projects, alongside increased stakeholder engagement before major changes are introduced to land and development charges.

According to HDAN, the housing sector requires predictable policies, affordable regulatory frameworks and stronger investor confidence to support sustainable urban growth.

The group maintained that Lagos has the potential to become Africa’s leading destination for real estate investment and affordable housing delivery if the government adopts policies that enable housing development rather than overburden it with excessive fiscal demands.

“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,” the organisation added.