Govts urged to explore tenement rates for economic growth, development

Governments have been urged on the need to reposition tenement rate administration effectively for the nation’s economic growth and development.

Through effective tenement rates administration,  the former President of NIESV, Dr. Emma  Okas Wike, who doubles as Keynote Speaker during the 31st  John  Wood Ekpenyong Annual Memorial Lecture/ 2025 Fellow’s Induction Compendium of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), in Lagos, said that the local governments would be able to unluck full potential of tenement rates as a reliable source of revenue.

This in turn, he said would contribute to improved public services, infrastructure development and economic stability.

“We cannot afford to keep losing income. This is also key to repositioning tenement rate administration for economic growth and development.

“In today’s Nigeria, where widespread hunger, unemployment and poverty undermine rapid economic development, where federal allocation is grossly inadequate to enhance infrastructure development and provision of essential services, Internally Generated Revenue, including tenement rate would go a long way in boosting local government income, provision of services and amenities, economic growth and development,” he said.

However, no fewer than 148  estate surveyors and valuers were promoted to the fellowship cadre by the council of NIESV.

Also, the President of the Senate, Senator  (Dr.) Godswill Obot Akpabio, conferred the Honorary Fellow of NIESV, having made remarkable contributions to real estate.

Justifying the need for effective tenement rate administration, Wike explained further that with the increasing responsibilities of local government authorities, it is required of them to operate with optimal efficiency to be able to satisfy the ever-increasing needs of its residents. 

He pointed out that tenement rates, a form of property taxation, played a crucial role in generating revenue for local governments. 

According to him, these rates are imposed on property owners or occupiers based on the assessed value of their properties and are used to fund public services and infrastructure development. 

“The tenement rate, often categorized under property tax, is a levy imposed on buildings based on their rental value,” he said 

Efficient tenement rate administration, the keynote speaker said would contribute to revenue generation for local government operations, infrastructure maintenance, and community development projects; ensure property owners contribute proportionally to public expenditures based on property values; and promote financial autonomy for local governments, reducing over-reliance on allocations from higher tiers of government.

He pointed out that with the Supreme Court judgement on July 11,, 2024 granting autonomy to local governments, all eyes henceforth would be on the third tier of government, the closest to the grassroots, adding that expectations of the people from the local governments would definitely increase. 

“The implication is that, more revenue shall be needed to run the local governments, in order to meet their commitments to provision of services and amenities, to economic growth and development, as well as yearnings of the people within their localities,” the guest lecturer said.

“By addressing existing challenges and implementing strategic reforms, local governments can unlock the full potential of tenement rates as a reliable revenue source,” he said.

Some of the challenges, he said include the usurpation of power of the local governments to collect tenement rate by state government; inadequate property valuation systems; corruption and lack of transparency; inefficient collection mechanism, noting that weak institutional frameworks lead to revenue leakages; low public awareness resistance to tax compliance; non-involvement of professional estate surveyors and valuers; unwillingness to pay tenement rate; inadequate staff training; insufficient logistics and transportation facilities.

“Unfortunately, tenement rating administration in Nigeria has not been very successful. We are actually losing it, for reasons I considered fundamental.

“Although there is a constitutional basis for the tenement rate, we need to address the situation in states like Lagos, Ogun, Kaduna, Edo, Kano and Anambra, which have enacted the Land Use Law and adopted the Land Use Charge. Under these laws, state governments have taken over the authority and responsibility of local governments by collecting property taxes or tenement rates. This situation represents a clear case of power usurpation, regardless of the sharing formula agreed upon by the state and local governments,” Wike said.

To repositioning tenement rate administration effectively for economic growth and development, the former president of NIESV, called for the implementation of Geographic Information Systems (GIS) for accurate property mapping and valuation, enhancement of transparency and governance; strengthening of enforcement mechanisms; public awareness campaign; capacity building; legislative reforms, stakeholders’ engagement, and establishment of partnerships with private firms for capacity building and technology adoption.

“Involving community leaders and property owners in policy formulation promotes trust and cooperation,” he said 

By addressing existing challenges and implementing strategic reforms,  he said that local governments could unlock the full potential of tenement rates as a reliable revenue source. 

However, he pointed out that estate surveyors and valuers are the right professionals to manage tenement rating, saying they possessed the expertise required for the task.

He said: “ Estate surveyors and valuers play a crucial role in nation-building, particularly in the areas of revenue generation and wealth creation for all levels of government.”

The guest lecturer urged the local governments to establish a proper institutional framework, with licensed estate surveyors and valuers managing the administration of tenement rates and all property-related taxes. 

“This approach will enhance the effectiveness and efficiency of the process.

“By implementing this framework, local governments will not only increase their income but also empower themselves financially to better meet their responsibilities to their communities,” he said.

President of NIESV, Mr. Victor Alonge, urged the new fellows to continue to be role models to younger estate surveyors and valuers, and the aspiring ones.

According to him, it is expected of them to continue to show quality leadership to other members of the profession, especially the younger ones and espouse the profession for the benefit of humanity. 

He said: ”Your actions should inspire and influence those around you. Use this influence wisely.

“I also want to remind you that the honour being conferred on you today requires continued absolute compliance to professional ethics and standards of practice, total commitment to the aims and objectives of the Institution. Let me emphasize that as Fellows of this noble profession, you are expected to continue to demonstrate the attributes of competence, ethical standards, integrity, honesty and devotion in addition to absolute loyalty to the institution.”

“You are obligated to uphold the ethics of the profession, defend the Constitution including the Council and general meetings decisions, comport yourselves and practice the profession in dignifying manners that will bring honour to the profession. It is also expected of you to be active and be fully involved in the activities of the institution at both National and Branch levels, and be active members of the Board of Fellows,” Alonge said.

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