Nigeria has experienced weak tax policies and administration, limiting the funding of essential public goods and services. Property tax has significant revenue potential for subnational governments, but remains underused due to economic, administrative, and political challenges. To uncover these challenges, a diagnostic assessment was conducted to identify gaps and weaknesses in the property tax system in Kaduna State through surveys of stakeholders’ perspectives, including fiscal and tax authorities, land authorities, judiciary and legal professionals, financial services providers including tax practitioners, valuation and technology professionals, non-government actors and civil society organizations, as well as property taxpayers including property owners, developers, and property tenants. The findings from the surveys revealed key challenges relating to property tax administration in the state, including poor billing systems, limited property identification, weak enforcement, low compliance, and lack of transparency in valuation. Therefore, reforms are needed to clarify the role of relevant agencies in the delivery of bills. It is also recommended to enhance enforcement mechanisms, expand property identification, and deploy a transparent, points-based valuation method.
This study was carried out by the African Centre for Tax and Governance (ACTG) with funding and support from LoGRI.
