Kogi State Introduces Ground Rent and Land Use Charge to Boost Revenue and Development
Kogi State has embarked on a significant revenue generation drive by introducing ground rent as a taxable component and implementing the Land Use Charge Law of 2024. This initiative aims to harmonize revenue streams, enhance data-driven decision-making, facilitate smart city development, and create employment opportunities. Alhaji Sule Enehe, Chairman of the Kogi State Internal Revenue Service (KGIRS), announced these developments during a stakeholders’ engagement session held in Lokoja. He emphasized the importance of the new law, stating that it consolidates various revenue sources into a single framework, ensuring consistent revenue generation across all local government councils within the state.
The Land Use Charge, also known as property tax, is expected to bring numerous benefits to Kogi State. By streamlining revenue collection processes, the law promotes transparency and ensures equitable contributions from all stakeholders. Enehe highlighted that KGIRS has previously collected tenement rates on behalf of local governments but ground rent collection has not been effectively enforced. The implementation of the Land Use Charge marks a significant shift in revenue collection strategy, aiming to fully leverage the state’s land resources for developmental purposes. The process of implementing the Land Use Charge commenced in the preceding year, and collaborative efforts between KGIRS and local government councils are crucial for its successful rollout.
The implementation of the Land Use Charge Law has been designed to be a collaborative effort between the state government and local councils. Enehe urged all council chairmen to actively participate in ensuring the law’s smooth implementation, recognizing that stakeholder collaboration is key to unlocking the state’s vast potential and securing a brighter future for its citizens. The law’s successful implementation is anticipated to significantly benefit both the local government councils and the state as a whole. Enehe stressed the importance of familiarization with the implementation process, emphasizing the need for council chairmen to provide necessary support to enumerators deployed to their respective local governments.
Mr. Femi Williams, CEO of New Wave Echo System, provided a comprehensive overview of the Land Use Charge Law and its potential benefits. He explained that the law is a well-established legal framework governing landed property and has been successfully implemented in several states for over fifteen years to boost revenue generation. Williams outlined specific exemptions to the Land Use Charge, including government-owned properties used for public purposes, places of worship, educational institutions, healthcare facilities, properties owned by traditional rulers for official purposes, and properties below a specified size threshold as defined by the state’s Land Use Charge Law. These exemptions aim to balance revenue generation with social considerations and protect essential public services and cultural heritage.
The chairmen of Olamaboro and Lokoja local governments, Cosmos Atabo and Abdullahi Adamu respectively, expressed their commitment to supporting the implementation of the Land Use Charge Law. They assured the KGIRS of their full cooperation and pledged to mobilize support at the grassroots level. This unified stance from local government leadership is crucial for ensuring the law’s effectiveness and its positive impact on local development. The chairmen emphasized the importance of collaborative efforts between the state government and local councils, recognizing the potential of the Land Use Charge to significantly contribute to development initiatives.
The introduction of ground rent as a taxable component and the implementation of the Land Use Charge Law represent a significant step towards strengthening Kogi State’s fiscal capacity. By streamlining revenue collection, promoting transparency, and ensuring equitable contributions from all stakeholders, the state aims to generate substantial resources for developmental projects. This initiative reflects the government’s commitment to improving infrastructure, enhancing public services, and creating a more prosperous future for all residents of Kogi State. The success of this initiative hinges on the collaborative efforts of the state government, local government councils, and stakeholders across various sectors.
