Rethinking Property Tax Administration In Nigeria: Challenges, Comparative Lessons, And A Reform Agenda For Sustainable Local Government Revenue Wike Mobilisation

Abstract

Property tax remains the most under-exploited fiscal instrument available to sub-national governments in Nigeria, despite decades of reform effort anchored on the Land Use Charge (LUC) laws first introduced by Lagos State in 2001 and subsequently adopted, in varying forms, by Anambra, Oyo, Edo, Ondo, Abia, Osun, Enugu and other states. This paper undertakes a conceptual and doctrinal review of property tax administration in Nigeria, situating the discussion within the broader theoretical and comparative literature on land and property taxation in Africa and beyond. Drawing on secondary sources, including empirical studies of the Lagos, Enugu, Bauchi and Benin experiences, the paper identifies the recurring administrative, technical, legal and political constraints that depress property tax yield: an incomplete and poorly maintained fiscal cadastre, outdated and inconsistent valuation practices, a multiplicity of overlapping land-based levies, weak enforcement capacity, low public trust arising from the poor visibility of services funded by the tax, and the disproportionate political influence of property-owning elites who are frequently the largest defaulters. The paper argues that property tax reform in Nigeria has too often been treated as a legal or rate-setting exercise rather than as an integrated administrative and institutional undertaking. It proposes a reform agenda built around five pillars: computer-assisted mass appraisal and geographic information system (GIS)-based fiscal cadastres; harmonisation of overlapping land-based charges into a single, transparent levy; professionalisation and adequate staffing of valuation and revenue functions; a deliberate strategy of linking tax revenue visibly to local service delivery in order to rebuild the fiscal exchange between citizen and state; and a phased, politically sequenced implementation strategy that builds legitimacy before intensifying enforcement. The paper concludes that, properly administered, property tax offers Nigerian sub-national governments a stable, buoyant and internally generated revenue base capable of reducing dependence on volatile federal allocations and financing sustainable urban infrastructure.