Governments are being called to revamp tenement rate administration as a critical driver for Nigeria’s economic development. In his keynote address at the 31st John Wood Ekpenyong Annual Memorial Lecture/2025 Fellow’s Induction Compendium of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) in Lagos, former NIESV President Dr Emma Okas Wike emphasized that local governments can fully harness tenement rates as a dependable revenue source.

Dr. Wike highlighted that an efficient tenement rate system could improve public services, enhanced infrastructure, and overall economic stability. He warned, “We cannot afford to keep losing income,” pointing out that, in a country grappling with hunger, unemployment, and poverty—and facing insufficient federal allocations—internally generated revenue like tenement rates is essential for boosting local government finances and driving development.

During the event, no fewer than 148 estate surveyors and valuers were elevated to the fellowship cadre by NIESV, while Senator (Dr.) Godswill Obot Akpabio conferred the Honorary Fellow of NIESV title on an individual recognized for significant contributions to the real estate sector. These appointments underscore the institution’s commitment to excellence and innovation in property valuation and management.

Dr. Wike explained that, as local governments face expanding responsibilities, operating with optimal efficiency becomes crucial. Tenement rates—essentially a property tax levied on buildings based on their rental value—play a pivotal role in generating the funds needed for local government operations. Proper administration of these rates not only supports infrastructure maintenance and community projects but also ensures that property owners contribute fairly to public expenditures, thereby promoting financial autonomy and reducing dependence on federal funding.

The significance of this approach has been further underscored by a recent Supreme Court ruling on July 11, 2024, which granted local governments greater autonomy. With rising expectations from residents, local authorities will require increased revenue to meet their commitments to service delivery and economic growth.

However, Dr. Wike identified several challenges impeding effective tenement rate administration. Among these are the usurpation of collection powers by state governments, inadequate property valuation systems, corruption, inefficient collection mechanisms, and low public awareness. He noted that in states like Lagos, Ogun, Kaduna, Edo, Kano, and Anambra—where Land Use Laws have allowed state governments to assume responsibility for property tax collection—such practices represent a clear case of power usurpation.

To address these issues, Dr. Wike called for a series of strategic reforms. Key measures include the implementation of Geographic Information Systems (GIS) for precise property mapping and valuation, enhancing transparency and governance, strengthening enforcement mechanisms, launching public awareness campaigns, building capacity through training, enacting legislative reforms, engaging stakeholders, and forming partnerships with private firms to adopt modern technology. He added that involving community leaders and property owners in policy formulation is vital to fostering trust and cooperation.

Emphasizing the role of professional expertise, Dr. Wike stressed that estate surveyors and valuers are uniquely qualified to manage tenement rate administration. “Estate surveyors and valuers play a crucial role in nation-building, particularly in revenue generation and wealth creation for all levels of government,” he stated. He urged local governments to establish robust institutional frameworks with licensed professionals at the helm, a move that would not only boost income but also empower them to better serve their communities.

Echoing this sentiment, NIESV President Mr. Victor Alonge encouraged the newly inducted fellows to be exemplary role models for aspiring professionals. He reminded them that the honor of fellowship comes with a commitment to uphold the highest ethical standards, demonstrate unwavering competence, and remain actively involved in advancing the institution’s mission at both national and branch levels.

In summary, repositioning tenement rate administration through strategic reforms and professional management is essential for unlocking local government revenue. Such initiatives are poised to drive improved service delivery, foster sustainable infrastructure development, and ultimately contribute to Nigeria’s economic growth.