Estate surveyors advocate property tax in Nigeria

Worried by the rate of unoccupied houses and high cost of rent in the Federal Capital Territory (FCT), the Nigeria Institution of Estate Surveyors and Valuers (NIESV) has advocated enactment of property tax law to address the development. The NIESV President, Bolarinde Putunola-Ajayi, said this at the weekend while speaking with journalists shortly after its […]

Worried by the rate of unoccupied houses and high cost of rent in the Federal Capital Territory (FCT), the Nigeria Institution of Estate Surveyors and Valuers (NIESV) has advocated enactment of property tax law to address the development.
The NIESV President, Bolarinde Putunola-Ajayi, said this at the weekend while speaking with journalists shortly after its council meeting in Abuja.
He said the property tax if enacted would crash rent in Abuja  and other cities as well as forcing developers and house owners not to leave their property unoccupied, noting that unoccupied property abound in the FCT due to high rent demanded by owners.
“There should be a private developer tax for houses that are not being utilized. If owners of such property do not  want to utilise them, they should either pay tax on the rent they ought to have received if put on rent or pay tax that is equivalent to what they should have paid if they have been collecting rent because those who are collecting rent are paying tax,” he said.
He explained that to make it effective, NIESV was canvassing for the creation of Office of Valuer General of the Federation where there would be an assemblage of information of abandoned property and those left unused by their owners.
Ajayi noted that rent is being dictated by the forces of demand and supply, advising governments at all level to develop mass residential housing for their staff, which he said would  put less pressure and demand on the rented property and in the process developers would have no choice than to bring down the rent. On asset declaration, Ajayi advised that the list of asset declaration of public officers should have the value certified by members of NIESV who are the only one recognized by law to carry out valuation attached to it.
“Once the asset declaration list is ready, NIESV members should be asked to go and verify and establish the true value of the property declared and by so doing there would be no under and over declaration of asset,” he said.