In a move to ensure better accountability in the collection of ground rent across Nigeria, experts are urging the federal government to prioritize transparency as it sets up a task force to audit ground rent nationwide.
Ground rent, a controversial and often opaque tax system levied on landowners, has become a hot topic, especially in the Federal Capital Territory (FCT), where recent actions by Minister Nyesom Wike, including the revocation of Certificate of Occupancy (C/O) titles from high-profile politicians, have put the issue in the national spotlight. Wike’s actions were a response to the failure of some prominent individuals to pay the tax on their properties, reigniting the debate over the collection process.
Ground rent is essentially a fee paid to the state government by landowners for the use of land, whether developed or undeveloped. While this tax is intended to serve as a key revenue stream for infrastructure development, experts argue that the current system is fraught with inefficiencies, potentially allowing for mismanagement and corruption.
Segun Maku, the CEO of Cipriani Ltd, underscored the need for technological innovation in ground rent collection, suggesting that the existing Geographic Information Systems (GIS) used in various states, including the FCT, should be leveraged for the process. Introduced in 2003, the Abuja Geographic Information System (AGIS) was designed to streamline land administration and improve transparency. Maku emphasized that if the government truly intends to audit ground rent collection effectively, it must implement a similar digitized system to track payments and monitor any discrepancies.
Speaking on the importance of this audit, real estate expert Musa Baba highlighted the necessity of ensuring that only credible individuals are tasked with carrying out the audit. Baba also stressed the importance of making the results public, arguing that public trust can only be restored by full transparency. He suggested that ground rent has untapped potential to fund much-needed infrastructure improvements, provided the system is revamped to ensure that the revenues collected are properly allocated.
In response to mounting concerns, the Federal Ministry of Housing and Urban Development has revealed plans to deploy audit teams across all 36 states and the FCT. Dr. Shuaib Belgore, the ministry’s Permanent Secretary, outlined the government’s strategy to conduct comprehensive audits of state properties and land while overseeing the collection of ground rent. During a recent meeting with housing controllers from across the country, Dr. Belgore explained that the task force teams will consist of state controllers, representatives from the federal and state housing authorities, and will be led by the Surveyor-General of the Federation.
Dr. Belgore assured that adequate resources would be provided to ensure the success of the initiative, with a portion of the generated revenue being allocated to fieldwork and audits. He also highlighted the importance of professional oversight, regular field audits, and effective communication to ensure that the task force’s work is both thorough and timely. To ensure that the initiative runs smoothly, Belgore emphasized the need for collaboration, calling for state controllers to work together and execute projects efficiently. He also stressed the importance of hands-on field experience, noting that effective project management is rooted in direct engagement with the areas being audited.
To address the challenges posed by a dwindling workforce, Belgore revealed that the ministry is making plans to recruit new staff and offer training programs to fill the gaps created by retiring personnel. Additionally, he called for the renewal of contracts for facility managers overseeing state projects, in a bid to tackle the growing issue of vandalism in certain regions.
As Nigeria sets its sights on reforming the ground rent system, experts and stakeholders are hopeful that this effort will not only improve the integrity of the process but also bring much-needed revenue into the government’s coffers for critical infrastructure development. With the audit task force now in place and an emphasis on transparency and accountability, the hope is that this initiative will pave the way for a fairer and more efficient system of land taxation in Nigeria.
