Property Tax Underutilised Source of IGR in Nigeria, Says UNILAG Don

Bennett Oghifo

Property tax remains one of the most underutilised sources of internally generated revenue in many parts of Nigeria, including Lagos.
The Dean, Faculty of Environmental Sciences, University of Lagos

Professor Adenuga Olumide stated this at a special session of the 2025 International Week, which was held at the University of Lagos, recently. The theme was: “Digital Innovation and Property Tax in Lagos.”

He said, “In a rapidly urbanising city like Lagos, the challenge of sustainably managing land, property, and infrastructure is immense. Yet, within this complexity lies an unprecedented opportunity — an opportunity to leverage digital innovation to make governance smarter, tax systems more transparent, and public service delivery more effective.”

The story, he said, “is beginning to change — thanks to the advent of Geographic Information Systems (GIS), digital land registries, remote sensing technologies, and Al-driven data analytics. These tools are revolutionizing how properties are identified, valued, and taxed.

“But innovation is not just about technology — it’s also about policy, people, and purpose. It’s about ensuring that systems are inclusive, equitable, and transparent. It’s about training a new generation of professionals — like the brilliant minds we nurture here at the University of Lagos — to build and manage these systems with integrity and insight.

“This forum today presents an incredible opportunity for us to 𝘭𝘦𝘢𝘳𝘯 from leading experts, policymakers, researchers, and industry stakeholders. We will examine case studies, debate policy frameworks, and explore collaborative pathways toward a more digitized, efficient, and fair Property tax regime in Lagos one that supports sustainable development and enhances urban resilience. Let me also commend the organizers of this International Week for choosing » theme that is not only intellectually stimulating but also directly relevant to the development challenges we face 𝘢𝘴 a megacity and as a nation. A𝘴 we proceed with today’s 𝘴𝘦𝘴𝘴𝘪𝘰𝘯𝘴, 𝘐 𝘦ncourage us all to engage with open minds, bold ideas, and a shared commitment 𝘵𝘰 progress, Let this not be just a 𝘤𝘰𝘯𝘷𝘦𝘳𝘴𝘢𝘵𝘪𝘰𝘯 but the beginning of meaningful action, pol𝘪𝘤y reform, and Innovative partnerships, Once again, | warmly welcome you all and wish us a most fruitful and impactful programme.
The Lagos State Commissioner for Housing, Hon. Moruf Akinderu-Fatal, said, “We must note that the increased pull to Lagos bring new challenges: greater housing demand, infrastructure pressure, informal developments, and the perennial need for sustainable revenue to support our growth. This 𝘪𝘴 where property tax, and indeed, innovation — become critical tools for urban governance.

“For too long, property taxation in many developing cities has been hampered by manual systems, incomplete records, and limited coverage. Many properties remain unidentified, undervalued, or untaxed, resulting in significant revenue losses that could have been channelled toward public housing, urban regeneration, and infrastructure provision.

“In Lagos, we recognize that to manage a megacity efficiently, data must replace guesswork, and digital tools must power decision-making. Our administration, under the leadership of Governor Babajide Olusola Sanwo-Olu, has therefore embarked on an ambitious journey to digitize property information and integrate technology into urban management.

“One of our landmark initiatives is the Digital House Numbering and Addressing System — a transformative effort to assign every property in Lagos a unique digital identity.

“Each property is tagged with a QR-coded address plate, linked to a central database containing information on ownership, land use, and valuation. This innovation enhances the ease of locating properties, facilitates efficient service delivery, and forms the backbone for accurate property taxation.
“The system is being piloted in select areas, and the results are encouraging: improved property visibility, better data integration, and enhanced civic engagement. Once fully deployed, this initiative will revolutionize how we administer land, collect taxes, and plan our communities.

“Digital innovation in property tax is not merely about boosting revenue; it is about equity, transparency, and governance.”

He said, “Through the use of Geographic Information Systems (GIS), remote sensing, and automated valuation models, the State can ensure that assessments reflect the true market value of properties.

“For property owners, this means fairer taxation — no arbitrary assessments, no hidden processes. For government, it means increased revenue and reliable data to support planning and service delivery.

“For urban planners and environmentalists — many of whom are seated here today — it opens up new frontiers in data-driven planning, environmental monitoring, and sustainable development.

“Digital transformation 𝘪𝘴 not an end in itself. It is part of a larger vision to make Lagos a smart, inclusive, and resilient city.

“When every property is mapped and registered, we can: Deliver public utilities more effectively; Enhance emergency response times; Improve housing policy and urban design; and Integrate climate resilience into land-use decisions.

“This is how innovation translates into better quality of life for all residents.

“Of course, we must also acknowledge the challenges — Data quality and integration across agencies; Privacy and data security concerns; Public sensitization and willingness to comply; and Capacity building for continuous system management.

“But these are challenges we can overcome through collaboration — between government, academia, and the private sector. The University of Lagos, with its world-class faculty and research strength, 𝘪s a vital partner in this journey. Together, we can create a model for other African cities to emulate.
“We need you to design the algorithms, develop the software, and refine the policies that will make our city smarter and more efficient. To my colleagues in government: let us continue to embrace innovation — not as a luxury, but as a necessity for effective governance.

“And to the citizens of Lagos: paying property tax is not just a civic duty — it is an investment in the infrastructure, housing, and services that sustain our collective well-being.

“The fusion of digital innovation and property taxation represents one of the most powerful instruments for sustainable urban development in Lagos.

“By leveraging data, technology, and collaboration, we are not only improving revenue; we are building a smarter, fairer, and more inclusive city.”

Professor Diana Mitlin, African Cities Research Consortium, University of Manchester, UK, said, “There is a recognition that the state needs to be more effective in generating revenue from those who are able to pay and in finding new ways to redistribute that revenue to deliver services, my optimism for today is that the key people involved in building, in planning and developing the city come together in that discussion to identify how they can draw out revenue, how they can find. Ways to redistribute that revenue, and how they can make sure that all of those who pay tax, be it through property or indeed, consumption based taxes, all of them are represented in choices that will take the city forward.”