The Nigerian government is stepping up efforts to collect past-due ground rent from property owners as part of efforts to generate Revenue from lands with unpaid taxes. Ground rent—a state-imposed Tax on both built and undeveloped land—have been frequently unpaid due to ineffective collection methods, difficult procedures, and a lack of understanding among property owners. This has resulted in significant financial losses, hampering the government’s capacity to Finance Infrastructure projects and necessary services. In response, the federal government has issued an ultimatum of 60 days to all federal Certificate of Occupancy (C of O) holders to pay their dues or have their land titles revoked.
Speaking at the 29th Conference of Directors of Land in Abuja, Ahmed Dangiwa, the Minister of Housing and Urban Development noted that the government had wasted trillions of Naira due to repeated non-compliance. Policymakers, academics, and community representatives gathered at the conference, which was themed “Equitable Land Stewardship: Challenges of Land Administration and its Impact on Climate Change and Community Rights,” to discuss urgent land administration concerns. He listed other obstacles to tax collection, such as associations in federal housing estates that prevent government representatives from entering residences for the purposes of billing and enforcement.
90 percent of Nigeria’s land is still unregistered.
Dangiwa highlighted the intricacies of Nigeria’s land regulations, namely the 1978 Land Use Act, as well as the drawn-out, expensive land titling and registration procedures that deter many Nigerians from formally acquiring land. He pointed out that many rural landowners are unable to use their land as financial assets or obtain credit since they do not have official land titles. Dangiwa also emphasized how land transactions are made more difficult, particularly in rural regions, by the conflict between formal legal frameworks and traditional land tenure arrangements. According to him, 90% of Nigeria’s land is still unregistered, accounting for almost $300 billion in “dead capital,” or unrealized economic potential.
Due to this backlog, substantial amounts of revenue are being withheld by property owners. The conference’s communiqué emphasized how urgently extensive automation of land records and an electronic revenue collection system are needed. It also suggested that in order to increase equity in land transactions, the Electronic Mortgage Asset Registry System (EMARS) be adopted, along with a new compensation assessment for economic trees and crops. The Federal Government has suggested a number of measures to address fundamental issues, such as establishing a centralized landowner database and strengthening collaboration with state governments to define more precise jurisdictional borders.
Unpaid ground rents constitute a substantial loss.
Additionally, the government intends to launch public awareness initiatives to inform landowners of the significance of ground rent and the possible consequences of noncompliance. Increased ground rent collection is seen by the Nigerian government as a calculated step to diversify its sources of income and maintain Economic Stability in the face of volatile oil prices. Officials stress that unpaid ground rents constitute a substantial loss and that collecting these arrears can contribute to funding social programs and vital infrastructure nationwide. The legal requirement of ground rent is also emphasized by federal authorities, who point out that it has long been mandated by Nigeria’s Land Use Act.
According to the government, appropriate collection and compliance will lessen problems related to informal or undocumented land ownership and help create a more organized and regulated Real Estate market. Concerns regarding alleged service gaps are acknowledged by officials, and several ministries have suggested that ground rent money be used to improve local infrastructure, particularly in underprivileged areas. The government intends to do this in order to show citizens the real advantages of compliance. Government officials emphasize that nonpayment of ground rent will result in severe penalties in order to promote compliance, further bolstering these efforts.
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Some experts, taking into account the complexity and implications of this move for property owners, argued that the 60-day ultimatum may be excessively short. While a few experts pointed out that better ground rent collection could have financial advantages, as it could lessen Nigeria’s reliance on oil, others, like real estate and legal experts, expressed worries about problems with property documentation. They cautioned that a rapid push for collection may encounter opposition from landowners who do not directly benefit from it.