A widening dispute over property taxation, valuation and revenue enforcement in Sabon Gari, Kano State, is putting additional pressure on landlords and tenants as property owners say rising government charges are driving up the cost of accommodation and doing business.
Chairman of the Sabon Gari Landlord/Caretaker Association, Kano State, Basil Nnamdi Ulasi, said landlords were not opposed to paying legitimate taxes but alleged that increased assessments, multiple levies and aggressive enforcement had placed property owners under growing financial pressure.
According to Ulasi, the additional costs are eventually transferred to tenants through higher rents.
“Landlords are the ones collecting the money, but when the cost of running the property increases, they have to look at the rent. If government is increasing the charges, somebody will bear the cost,” he said.
Landlords Protest Rising Property Charges
Ulasi alleged that property-related charges had increased significantly, with some landlords who previously paid between N15,000 and N20,000 in local government charges now receiving demands of N500,000 or N800,000.
He said the association had previously negotiated payments of about N100,000 in local government charges, alongside state government payments of about N500,000 and N200,000, but claimed that the financial demands had risen significantly.
The association, he said, could provide previous payment receipts to demonstrate the changes.
Landlords Challenge Property Valuations
The dispute has also extended to property valuation.
Ulasi alleged that some government officials attempted to assess properties without adequate involvement of their owners, resulting in valuations landlords considered unrealistic.
He cited one property which he said could be worth between N60 million and N70 million but was allegedly assessed for taxation purposes at about N700 million.
Such assessments, according to Ulasi, could produce tax obligations that do not reflect the actual economic value or income-generating capacity of properties.
How Rising Costs Affect Tenants
Ulasi explained that the impact becomes clearer at the individual property level.
He gave the example of a landlord with six flats generating about N200,000 each, amounting to N1.2 million in rental income.
From that income, he said, the landlord still has to meet tax obligations and other operating expenses, leaving less money for maintenance, repairs and other property-related costs.
The association chairman said this creates a chain in which increased government charges raise landlords’ operating costs, prompting rent adjustments that eventually affect tenants.
For residents and businesses already facing higher living and operating expenses, the additional rent burden could further increase costs.
The association has therefore called for the harmonisation of taxes so property owners do not receive separate demands from multiple government authorities.
“We suggested that they should unify the taxes, call us and let us see what they are doing. Each tax should be in one place, then we pay with a human face,” Ulasi said.
Tax Dispute Moves To Court
Ulasi said the association wrote to government authorities and sought meetings to resolve the valuation and taxation disagreements.
The landlords subsequently approached the courts seeking clarification on the legality and procedures surrounding property valuation and taxation.
According to Ulasi, the association was advised during the proceedings to engage professional property valuers and meet with government representatives to pursue a resolution through dialogue.
He alleged that following the court proceedings, government officials accompanied by security personnel moved into parts of Sabon Gari.
Ulasi claimed that some shops were sealed and association members, including the vice chairman and secretary, were arrested and taken to a police station before being arraigned.
He said the alleged enforcement action changed the dispute from a disagreement over taxation into a broader confrontation involving government authorities, security agencies and property owners.
Ulasi further alleged that some landlords and traders subsequently paid the amounts demanded to avoid further confrontation.
Landlords Raise Infrastructure Concerns
The taxation dispute is also taking place against the backdrop of concerns over infrastructure in Sabon Gari.
Ulasi said the area had suffered from inadequate water supply despite being a densely populated commercial district.
“Sabon Gari has been lacking basic infrastructure for a long time. We don’t have pipe-borne water. People buy water from Mai Ruwa,” he said.
He said some landlords had drilled boreholes to provide water for tenants but alleged that such private infrastructure efforts also attracted additional local government charges.
According to him, this has created concerns among property owners who pay taxes while also spending their own resources to provide services for residents.
Ulasi acknowledged improvements in electricity supply but said water and roads remained major concerns.
He alleged that nearly 90 per cent of roads in the area were not motorable, although some were undergoing rehabilitation.
Trader Relocation Adds To Congestion
The association also linked the area’s challenges to the relocation of traders from Yankura to the New Road area.
Ulasi attributed the relocation to the Kano State Road Traffic Agency, KAROTA, saying it had transformed parts of New Road into a congested commercial zone.
He disputed claims that traders moved there simply because of better business opportunities, saying they were relocated to facilitate construction work at their previous location.
According to him, trading activities now begin as early as 5am, with traders occupying parts of the road and creating traffic congestion.
“The whole road is blocked from five o’clock in the morning. If you come here, you cannot be able to pass,” he said.
He also linked the congestion to security concerns, alleging thefts and break-ins involving shops and houses in the area.
Association Seeks Unified Tax System
The Sabon Gari Landlord/Caretaker Association wants the Kano State Government to intervene in the dispute and supervise revenue collection activities in the area.
The association is seeking a unified taxation framework, transparent property valuation, a single payment system and greater involvement of property owners in determining the basis for assessments.
Ulasi also appealed for improved water supply, roads, security and traffic management, arguing that better infrastructure would make taxation more acceptable to property owners and residents.
“We are begging the State Government to come to our aid, or else things will go from worse to wherever we don’t know,” he said.
The dispute highlights the relationship between property taxation and housing affordability, with landlords arguing that higher government charges can ultimately feed into rents paid by tenants.
