Taiwo Oyedele
Picnews
Lagos has the potential to generate N1 trillion yearly from property tax, according to Taiwo Oyedele, a partner and head of tax and corporate advisory services at PwC Nigeria. This is a significant opportunity for the state to boost its internally generated revenue (IGR) and fund infrastructure development.
Property tax, also known as Land Use Charge (LUC), is an annual levy on real estate properties in Lagos, combining ground rent, tenement rate, and neighborhood improvement levy. The current rate is approximately 0.394% of the assessed property value, with rates varying depending on property type and location.
The Lagos State Government has implemented measures to improve property tax collection, including digitalizing the payment process and increasing enforcement. However, challenges persist, such as inadequate property valuation and resistance from property owners.
To achieve the N1 trillion target, Oyedele suggests improving tax administration, increasing property coverage, and enhancing compliance. This could involve leveraging technology to identify and assess properties, as well as engaging with property owners to raise awareness and encourage voluntary compliance.
Other states in Nigeria, such as Oyo and Abuja, are also exploring property tax reforms to boost revenue. If implemented effectively, property tax could become a significant contributor to Nigeria’s revenue, funding essential public services and infrastructure.
The success of property tax initiatives will depend on factors like transparency, accountability, and fairness in tax administration. Would you like to know more about property tax rates in other Nigerian states or the impact of property tax on Nigeria’s economy?
