NIESV Advocates Ground Rent as Sustainable Revenue Source for Housing and Infrastructure Development

The Nigerian Institution of Estate Surveyors and Valuers (NIESV) has renewed its call for the adoption of ground rent as a key strategy for revenue generation and housing affordability in Nigeria. Speaking during the 2025 Estate Surveyors’ Week held in Lagos, the Lagos State Chapter Chairman, Gbenga Ismail, emphasized that the implementation of a well-structured ground rent system could significantly boost government income while simultaneously promoting access to affordable housing for ordinary Nigerians.

Ground rent refers to the periodic payment made by leaseholders to landowners—usually government—in exchange for the right to occupy and develop a parcel of land. Ismail highlighted that in many countries, this system is not only a major source of public revenue but also an effective means of regulating land use and encouraging efficient land development. In the Nigerian context, he argued, such a model could help reduce the financial burden on developers and homeowners while ensuring that government maintains a sustainable revenue stream to reinvest in infrastructure and public services.

According to Ismail, one of the biggest barriers to home ownership in Nigeria is the high upfront cost of land. He proposed a model where land is allocated at a marginal cost, allowing developers to pay the bulk of their fees gradually through a structured ground rent system. This would help make land more accessible to private developers and individuals while ensuring that the government can collect revenue over time to support public spending.

“We cannot continue to price land in a way that shuts out the average Nigerian,” Ismail said. “If the government releases land at minimal cost and developers are allowed to amortize their payments through ground rent, then we will not only increase access to affordable housing but also create a more sustainable and equitable system of revenue collection.”

This proposed system, he explained, would also help address the issue of underutilized land. By enforcing regular ground rent payments, the government can incentivize landowners to develop their properties or risk losing them due to non-compliance. This approach, he argued, could unlock idle land and spur economic activity, particularly in urban centers where demand for housing remains high.

Ismail also pointed out the challenges posed by the current cost of building materials, over 70 percent of which are imported. The reliance on foreign finishing products has contributed significantly to high housing costs, making homeownership unaffordable for most Nigerians. By encouraging local manufacturing and combining it with a fairer land allocation and rent structure, the government could make housing more accessible and stimulate domestic economic growth.

On the policy front, Ismail weighed in on Lagos State’s proposed initiative to transition rent payments from annual to monthly. He welcomed the idea but stressed that such a shift must be backed by a clear legal framework, effective enforcement mechanisms, and adequate infrastructure. He recommended that the state pilot the initiative in government-owned estates before expanding it to private properties. This phased approach, he said, would allow for proper testing and adjustment before full-scale implementation.

“While the monthly rent policy could benefit tenants by easing the financial burden, it must be carefully designed to protect the interests of both landlords and tenants,” Ismail noted. “We must strike a balance—ensure affordability for tenants while safeguarding the investment of property owners.”

He also suggested offering incentives to landlords who comply with the new system, such as tax breaks or priority access to government services. This, he believes, would encourage broader adoption and improve compliance rates across the state.

The Estate Surveyors’ Week also served as a moment of reflection for the Lagos chapter of NIESV. Ismail recounted several achievements under his tenure, including the growth in membership and the successful implementation of the Mandatory Professional Continuous Development (MPCD) program. These initiatives, he noted, have significantly improved the quality and professionalism of estate surveyors in Lagos State, setting the benchmark for excellence within the profession nationwide.

Under Ismail’s leadership, the chapter has also strengthened partnerships with government agencies and private stakeholders, advancing the cause of property professionals in public policy discussions. The MPCD program, in particular, has enhanced the capacity of practitioners to engage with emerging trends and challenges, equipping them with the skills necessary to navigate the increasingly complex real estate environment in Nigeria.

The NIESV’s advocacy for ground rent as a revenue model is part of a broader push to modernize Nigeria’s land administration system. Experts believe that a transparent, accountable, and enforceable rent structure could not only improve public revenue but also reduce land speculation, promote equitable development, and foster long-term investment in housing.

As Nigeria continues to grapple with a significant housing deficit—estimated at over 17 million units—NIESV’s call for reforms offers a practical solution that aligns both economic and social objectives. By using ground rent as a lever for affordability and revenue, the country could move closer to achieving inclusive urban development and sustainable public finance.

In the face of growing urbanization and increased demand for housing, the call to integrate ground rent into Nigeria’s land and housing policies is gaining traction. The NIESV’s proposals mark a strategic shift toward smarter, more sustainable land management—one that promises to benefit both citizens and the state in equal measure.