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.

The post Sabon Gari Rent Crisis: Rising Property Taxes Push Kano Landlords To Increase Rents appeared first on Housing TV Africa.

Estate surveying and valuation firm Ubosi Eleh + Co has stressed that proper documentation and ownership titles for properties could become a powerful tool in reducing poverty and expanding economic opportunities in Nigeria.

The firm made the assertion during a media briefing in Lagos ahead of activities marking its 35th anniversary celebration scheduled for the second week of June.

According to industry experts, formal property ownership documentation can unlock access to credit, improve wealth creation and strengthen government revenue generation.

Property Titles Can Unlock Access to Capital

Speaking during the briefing, Principal Partner of Ubosi Eleh + Co, Emeka Eleh, said millions of Nigerians possess properties with economic value but are unable to maximise those assets due to lack of formal documentation.

According to him, property titles make it easier for owners to use their assets as collateral for loans and business financing.

Eleh explained that once ownership is formally recognised, property owners can leverage their assets to access funding that could support small businesses and economic growth.

He noted that individuals often struggle to raise capital from untitled properties despite their significant market value.

Call for Land Reform in Nigeria

Eleh urged government authorities to initiate broad land reforms capable of providing legal titles to property owners across the country.

According to him, such reforms would not only benefit individuals but also strengthen government revenue through improved property taxation systems.

He explained that a properly documented property system enables authorities to identify assets and collect taxes more efficiently.

Property Tax Seen as Major Revenue Source

Eleh pointed out that developed economies rely heavily on property taxes to fund public services and infrastructure.

According to him, cities in advanced countries generate significant portions of their revenue from property-related taxes due to effective land documentation systems.

He argued that strengthening land administration and documentation processes could create long-term benefits for Nigeria’s economy.

Nigeria’s Property Market Becoming More Open

Also speaking during the event, Principal Partner at Ubosi Eleh + Co, Chudo Ubosi, said the Nigerian property sector is gradually moving away from a culture of secrecy toward greater openness and transparency.

He explained that property owners are increasingly becoming comfortable with publicly advertising and transacting property assets.

Ubosi noted that the evolution reflects growing confidence within the sector and changing attitudes toward real estate ownership and investment.

He also credited strategic communication and marketing efforts for the company’s growth over the last 35 years.

The post Property Titles Can Help Fight Poverty in Nigeria — Estate Firm appeared first on Housing TV Africa.

Nigeria’s new Tax Act will take effect come January 2026, ushering in one of the most significant overhauls of the nation’s fiscal framework in decades. Designed to align with global standards, the law is expected to reshape the real estate and housing finance landscape but experts warn its success hinges on effective implementation, transparency, and consistent engagement.

A New Era for Real Estate and Property Investment

The Nigeria Tax Act 2025 introduces tougher anti-evasion measures, including a “top-up tax” on multinational corporations, stricter Controlled Foreign Company (CFC) rules, and more comprehensive definitions of taxable capital gains. Though primarily targeting foreign entities, these provisions will reverberate through Nigeria’s property sector, where many large projects rely on offshore financing through Special Purpose Vehicles (SPVs).

Developers could face higher taxes and tighter reporting requirements under the Federal Inland Revenue Service (FIRS), while property disposals will now attract Capital Gains Tax (CGT) on actual profits closing long-standing loopholes that allowed tax avoidance through share transfers instead of asset sales.

Stamp Duties and Luxury Property Tax

One major flashpoint is the adjustment of stamp duties on property leases above ₦10 million, which experts say could further inflate housing costs in cities like Lagos and Abuja. Similarly, a proposed 1.5% annual luxury property tax on high-end homes in areas such as Ikoyi and Maitama aims to increase revenue from wealthy homeowners but may distort the upper property market.

Impact on Developers and Mortgage Institutions

Developers and lenders are bracing for higher compliance costs and thinner margins. While the reforms may initially raise borrowing costs, experts believe long-term gains are possible if revenues are reinvested into housing infrastructure and mortgage credit.

The Real Estate Investment Trust (REIT) segment could also see changes. Though currently enjoying tax exemptions under FIRS rules, inconsistent interpretation of the new provisions could unsettle investors, highlighting the need for regulatory clarity.

Opportunities Amid Uncertainty

According to Ayo Ibaru, CEO of Northcourt, exempting residential properties from VAT and expanding recoverable input VAT to cover construction services could ease cost pressures. He urged the government to complement reforms with tax incentives for green and affordable housing.

Dr. Roland Igbinoba, President of Proptech Nigeria, described the law as transformative but warned of short-term pain. “CGT has moved from 10% to 30%. Developers must plan carefully, but over time, the law will bring greater transparency and predictability,” he said.

Estate valuer Olufemi Oyedele called for targeted reliefs to protect affordability. “Authorities should tax empty houses and channel proceeds into mortgage support for low- and middle-income buyers,” he advised.

Balancing Reform and Reality

Experts agree that implementation will make or break the reform. Without transparent processes, data-driven valuation systems, and active engagement between government and stakeholders, the benefits could be lost to confusion and overregulation.

The new tax regime marks a critical juncture for Nigeria’s real estate industry, one that could either unlock sustainable financing for affordable housing or deepen existing market imbalances, depending on how policymakers strike the balance.

By: CHINEDUM UWAEGBULAM

Source: Guardian

The post How Nigeria’s New Tax Law Will Transform Real Estate Financing appeared first on Housing TV Africa.

In a recent analysis, the IMF explained that taxing immovable properties, such as buildings and land, could help local governments tap into the wealth created through urbanization and construction. The report emphasized that property taxes are especially valuable for developing nations where collecting income and wealth taxes is often a challenge due to their mobility.

“Recurrent property taxes can help governments fairly generate revenue from the wealth created by construction-driven urban growth,” the IMF stated. “This is critical in countries where other forms of taxation are harder to implement.”

The IMF report drew a striking comparison between advanced economies and emerging regions. While OECD countries collect over 1% of their GDP from property taxes, and some advanced economies collect up to 3%, countries in Africa and Asia generate just 0.1% of GDP from the same source.

To address this shortfall, the IMF urged governments to embrace modern tools like satellite imagery, drones, and geographic information systems to improve the mapping and valuation of properties. These technologies, combined with policy reforms, could increase property tax revenue in developing countries by up to tenfold, the report noted.

The IMF also recommended a phased approach, starting with simple area-based property tax systems before transitioning to market-value-based taxation. This method, already in use in cities like Delhi and Bangalore, could provide a practical and politically acceptable model for countries like Nigeria.

The report highlighted the political advantages of property taxes. Unlike national taxes, property taxes are collected and spent locally, making them less controversial. By linking tax revenue directly to public services like roads, schools, and waste management, local governments can foster greater transparency and accountability.

“Locally collected property taxes create a clear connection between what people pay and the services they receive. This can make such taxes more acceptable to citizens,” the IMF explained.

The IMF stressed the urgency of these reforms, estimating that governments worldwide need to raise an additional $3 trillion by 2030 to meet global development goals. For emerging markets, this translates to 4% of GDP, while low-income countries face the daunting task of raising 16% of GDP.

For Nigeria, adopting an efficient property tax system could provide a much-needed revenue boost to fund essential services, improve urban infrastructure, and support economic growth.

“Property taxes are not just a revenue tool—they’re a pathway to better cities and stronger economies,” the IMF concluded.

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