NIESV Accuses State Governments of Undermining LGs’ Authority Over Property Taxes

The Nigerian Institution of Estate Surveyors and Valuers (NIESV) has raised concerns over state governments encroaching on the constitutional powers of local governments to collect property taxes. According to the professional body, this interference undermines local governance and weakens the financial autonomy of local councils.

Speaking at a recent event, NIESV representatives criticized the trend where state governments either take over property tax collection entirely or impose regulations that limit the role of local councils. They argued that this not only contradicts Nigeria’s legal framework but also deprives local governments of a crucial revenue source needed for grassroots development.

Property tax, which includes tenement rates and land use charges, is a major revenue stream for local governments. However, in many states, governments have introduced new policies that centralize tax collection, often channeling the funds to state accounts instead of local councils. NIESV warned that this practice reduces the ability of LGs to fund essential services, including infrastructure, waste management, and community development projects.

The institution called on the federal government to intervene and ensure that local governments retain control over property taxation, in line with the constitution. They also urged state governments to respect the financial independence of LGs and explore collaborative approaches that ensure transparency and efficiency in tax collection.

As the debate continues, stakeholders emphasize the need for clear policies that balance state oversight with local government autonomy, ensuring that property taxes fulfill their intended purpose of funding grassroots development.