Stakeholders in Nigeria’s housing and built environment sector have raised concerns over the negative impact of multiple taxation on private developers and property owners. They say the burden is discouraging investment and hindering progress in the real estate industry.
This concern was voiced at a two-day workshop in Ogun State, themed “The Impact of Emerging Technologies on Urban and Regional Planning: Challenges and Opportunities.”
Excessive Levies Hurting Private Developers
Bisi Adedire, President of the Association of Town Planning Consultants of Nigeria, highlighted how numerous levies imposed by various ministries and government agencies are stifling private sector operators.
“While the levies are necessary to enhance government services, they hurt property developers—especially when they must pay upfront before construction even begins,” he said.
Adedire called on the Federal Government to adopt a more flexible, inclusive tax system that benefits all stakeholders in the housing value chain.
Tax Complexity Discourages Land Regularization
Olorunyomi Alatise, an estate surveyor, echoed similar sentiments, stating that the tax burden discourages property owners from regularizing their land.
“You pay capital gains tax, land use charge, tax clearance, and other fees. The total becomes overwhelming, especially for someone who just bought a property,” Alatise explained.
Government Acknowledges Issues, Calls for Collaboration
Oluwole Sotire, Permanent Secretary at the Lagos State Ministry of Physical Planning and Urban Development, acknowledged that while taxes are necessary, questions remain about their fairness.
“Citizens must pay taxes, but we must ensure equity through stakeholder involvement and responsible governance,” he said.
He also lamented cases where planning regulations are undermined, including a recent land encroachment case in Otta, Ogun State, involving government officials issuing conflicting Certificates of Occupancy.
Implementation, Not Policy, Is the Core Issue
Babatunde Adeyemo, CEO of Pelican Valley, stressed that Nigeria’s housing challenges stem from poor policy implementation, not a lack of policy.
“The rules are there, but we lack strategic orientation and proper enforcement,” he noted.
Using the Muhammad Buhari Estate in Kobape as a case study, Adeyemo criticized the government’s approach to land acquisition without infrastructure, warning that such practices stall development.
“You don’t just clear land without plans to provide roads, water, and electricity. Development will never happen that way,” he added.
As Nigeria’s housing demands grow, industry experts agree that reforming the tax structure and enforcing planning regulations will be crucial for fostering sustainable development.
