Diagnostic Assessment of Property Tax in Nigeria – The Case of Ekiti State

Nigeria has long faced weak tax policy design and administrative capacity, constraining its ability to mobilize domestic revenue to finance essential public goods and services. Although property tax represents a significant and stable revenue source for subnational governments, it remains largely underutilized due to persistent technical, administrative, and political challenges. In Ekiti State, these constraints have severely undermined property tax performance, with revenues estimated at only 0.002 per cent of the state’s Gross Domestic Product (GDP) between 2021 and 2023. To better understand the underlying causes of this poor performance, a diagnostic assessment was conducted to identify gaps and weaknesses in the property tax system through stakeholder surveys. The assessment captured perspectives from fiscal and tax authorities, land administration agencies, the judiciary and legal professionals, financial service providers (including tax practitioners), valuation and technology professionals, non-governmental and civil society organizations, as well as property taxpayers—namely property owners, developers, and tenants. Survey findings highlighted several systemic challenges, including weak inter-agency collaboration and limited information sharing, incomplete property identification and registries, inconsistent valuation practices, unclear or unevenly applied tax rates and exemptions, and inefficiencies in billing and collection processes. Despite these challenges, the assessment revealed substantial untapped potential for property tax revenue. A coordinated and comprehensive reform agenda aimed at addressing these institutional and administrative weaknesses could significantly enhance property tax performance and help unlock sustainable revenue for Ekiti State.