NIESV Accuses State Governments of Usurping Local Governments’ Authority Over Property Taxes
The Nigerian Institution of Estate Surveyors and Valuers (NIESV) has raised concerns about state governments taking control of property taxes, a responsibility constitutionally assigned to local governments.
This issue came to the forefront during the 31st Annual John Wood Ekpenyong Memorial Lecture and the 2025 Fellows’ Induction Ceremony of NIESV, held at Eko Hotels & Suites, Victoria Island, Lagos.
Local Government Financial Autonomy: A Critical Concern
Emma Wike, a former NIESV president and principal partner at Emma Wike & Partners, emphasized the importance of financial independence for local governments.
Wike stated:
“Promoting financial autonomy for local governments is essential to reduce over-reliance on higher tiers of government.”
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He pointed out that tenement rating administration in Nigeria has not been successful due to state governments’ interference.
States Overstepping Constitutional Boundaries
States like Lagos, Ogun, Kaduna, and Anambra have enacted the Land Use Law and adopted the Land
Use Charge, effectively taking over the collection of property taxes.
According to Wike, this action represents a clear case of power usurpation, even when revenue-sharing formulas exist between state and local governments.
Why Local Governments Must Control Property Taxes
Wike further stressed that federal and state governments cannot single-handedly drive economic growth and development across all regions.
He explained:
“Local governments were established to fill the gap by providing essential services and amenities, especially in rural areas.”
Key Points on Local Government Roles:
Local Government Reform of 1976 mandates local governments to provide basic services using internally generated revenue, including tenement rates.
With the Supreme Court granting local government autonomy, expectations are rising, making property tax revenue more critical than ever.
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The Economic Impact of Property Tax Autonomy
Property rating remains a significant revenue source for local governments, but it requires an efficient collection system to fulfill its potential.
Wike concluded:
“The administration of tenement rates must be repositioned for effectiveness if it is to drive and sustain economic growth and development.”
NIESV President Urges Ethical Leadership and Continuous Learning
Addressing the 147 newly inducted Fellows, Victor Alonge, President and Chairman of Council, NIESV, highlighted the importance of ethical standards, professional competence, and integrity in the real estate profession.
Alonge’s Key Messages to Inductees:
Fellows must uphold professional ethics, demonstrate competence, and remain loyal to the institution.
There is a zero-tolerance policy for actions undermining the institution, with strict sanctions for violations.
Emphasis on continuous professional development through training, re-training, and upskilling.
Alonge added:
“Today’s digital landscape provides immense opportunities. You have the privilege of using technology to make positive changes.”
