Connect with us

News

Revitalized Optimism: Leveraging the Impact of Property-Associated Taxes in Nigeria

Published

on

While Nigeria’s real estate market is assessed at around $56 billion and the urban-focused economic expansion and ongoing urbanization enhance real estate prices, leading to substantial wealth for property holders, the income from property taxation remains significantly inadequate compared to that of other nations.

Ownership of land has emerged as a prominent symbol of personal affluence. Due to their tangible and fixed nature, landed properties offer a straightforward means of revenue generation for landlords and governments alike. In most OECD countries, property taxes account for 1-2% of their Gross Domestic Product (GDP), while in other countries collection amounts to only 0.1 – 0.2% of their GDP.

Revenue potentials from the property related taxes include Land Use Charge, Capital Gains Tax, Withholding Tax on rental Income, Personal Income on Rental Income, Stamp Duties, Building Plan Approvals, Ratification and regularization fees.

Although Nigeria’s real estate market has been valued at an estimated $56 billion and our urban-centric economic growth/continued urbanisation boost real estate values whilst generating enormous wealth for property owners, revenue from property tax remains abysmally low compared to other countries.

Property taxes are widely recognised as an economically efficient and progressive revenue source; the current revenue compared to the size of the Nigerian Economy show that the enormous potential has not been fully tapped by the country’s sub national Governments.

In most states, the processes in place for tax collection are inefficient and ineffective, leading to lost revenue. The current systems are characterised by weak or non-existent legal frameworks, inefficient property enumeration, narrow coverage of issued assessments, non-delivery of assessment notices, and inadequate enforcement mechanisms.

In order to drive an efficient and effective property tax system, we need a strong legal framework partnered with a robust IT platform with GIS property identification features, and the ability to seamlessly handle identification of properties in the state. There also needs to be a working system for preparation of tax rolls, issuing tax bills, collecting taxes, responding to assessment appeals, dealing with arrears, and payment enforcement. Most importantly, our tax system will benefit from the integration of useful data relating to properties, owners, and occupants which are currently siloed in different government departments.

Lastly, as we strive towards establishing a robust property tax framework, tackling the challenge posed by influential figures who exploit their connections to undermine the system is paramount. Therefore, it is imperative for Governors to exhibit the necessary determination to collect revenue from this valuable source and close any existing loopholes.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Lagos schedules meeting with owners of distressed buildings.

Published

on

The Lagos State Government has said it would soon arrange a meeting with developers/owners of distressed buildings on how best to address the redesign and remodelling of such structures by November.

This was disclosed recently by the Commissioner for Physical Planning and Urban Development, Oluyinka Olumide, at a function in Alahusa, Lagos.

Olumide said the prevalence of distressed buildings in different parts of the state was worrisome and needed the urgent attention of all stakeholders.

He said, “The Ministry of Physical Planning and Urban Development as mandated by the Lagos State Urban and Regional Planning and Development Law, 2019, as amended, was willing to extend its responsibility for approving the remodelling of existing buildings to provide technical assistance to developers and owners of distressed buildings, especially on the design and remodelling of such buildings.

Continue Reading

News

FG threatens contractors over Enugu-Onitsha road delay

Published

on

The Federal Government has instructed the contractors responsible for the 107km Enugu-Onitsha road dualization to expedite the project.

This directive was given by the Minister of Works, Senator David Umahi, during a meeting with MTN, the Enugu State Government, and the contractors, RCC Ltd and Nigercat Ltd, on Friday.

According to a statement released on Friday, the minister said he is disappointed over the slow pace of work on the project, he said, “Let me express my disappointment over the slow pace of work on that project. It is one of the worst roads in this country.

“Everywhere we have diversion; diverting from the one that RCC and Nigercat had completed, the contractors are not kind enough to even put stone based on the diversion points.”

He added, “So, by the reason of the launching of our Operation Free our Roads, it is now a violation of the policy on the side of the controllers and directors of the Federal Ministry of Works where we have vehicles falling on any project that is ongoing or where there are potholes on our roads.”

He also blamed the sufferings of road users on the lack of commitment and insensitivity of the contractors.

“The public must know that the President’s intention is not for them to suffer while trying to fix the roads, and it is their right to insist that contractors should fix the roads that they are engaged on,” he said.

The Minister commended the Enugu state government for their resolve to fund the construction of a 20 KM section of the road and expressed hope that MTN would execute the second phase of the project.

He noted, “Why the Enugu State government is intervening is because of the slow pace of work by the contractors and because of funding issues. The essence of tax credit is for funds to be made available. And so, I don’t see RCC going to keep their promise to finish this project in 6 months.

“My advice to MTN is to look for another contractor within that axis if they want to get the job done. Division of labour is even the best. While they are doing the road, and if Nigercat is doing a good job, you can give them greater scope to do if you want to finish that job.”

He warned contractors that the Federal Government would not accept phased handovers of projects and has phased out Variation of Price in contract administration.

Continue Reading

News

Ekiti state government mediates land dispute between traditional ruler and family in Epe-Ekiti

Published

on

The Ekiti State government has intervened to resolve a longstanding land dispute between the Elepe of Epe-Ekiti, Oba Ayodele Adesoye, and the Atolagbe family. The government cautioned against the misuse of modernization as an excuse to disregard traditional customs.

In line with the community’s traditions, the government has ordered the release of resources, including palm trees at Oko Oba Farmland, to Oba Adesoye for his administration. This decision ensures the continued adherence to age-old practices.

Ekiti State Deputy Governor, Chief (Mrs) Monisade Afuye, announced the resolution in Ado-Ekiti. The decision was made after considering the Elepe’s claim to Oko Oba Farmland based on historical evidence.

Mrs. Afuye acknowledged the Elepe’s right to be the custodian of Oko Oba Farmland, citing longstanding traditions that support his claim. The decision reflects the importance of respecting historical practices and ensuring their preservation.

The deputy governor, however, told the monarch in clear terms that other princes and princesses from all the three ruling houses should be allowed to farm on the land without payment of royalty.

Mrs Afuye appealed to the community to comply with the government’s position to restore unity, peace and orderliness to the beleaguered community.

Oba Adesoye expressed gratitude for the government’s decision and pledged to foster peace and unity between the throne and the community, aiming to accelerate Epe’s development.

Representing the Atolagbe family, Dr. Yemi Agbeleoba acknowledged their willingness to cede Oko Oba Farmland to the monarch. However, he emphasized the need for all three ruling houses to participate for a lasting and traditional solution.

Agbeleoba expressed appreciation for the government’s directive, believing it will contribute to resolving the long-standing conflict.

Continue Reading

Trending