Residents of Kogi State are now required to pay ground rent as part of the state government’s tax collection initiative. This new tax, which applies to both developed and undeveloped land, is aimed at boosting the state’s revenue generation efforts.
Ground rent is a tax levied by the government on land it has granted, with landholders responsible for paying it within a specified timeframe. In Nigeria, most land is government-owned, with individuals or corporations holding leases, which can last up to 99 years. Leaseholders are primarily responsible for paying ground rent, though payment amounts may differ based on the lease agreement.
Highlighting the importance of the new law, Enehe emphasized that it consolidates all revenue collections into a single framework designed to improve the financial standing of local government councils in Kogi State. He noted that the law’s implementation would contribute to the development of smart cities, enhance data-driven decision-making, and create job opportunities across the state.
Enehe also stressed that the law is part of ongoing tax reforms aimed at streamlining the state’s revenue collection system. The initiative is designed to promote transparency and ensure that everyone contributes fairly to the state’s development.
“The successful implementation of this law will have significant benefits for our local governments and the state as a whole,” Enehe said. He pointed out that while the Kogi State Internal Revenue Service (KGIRS) had been collecting tenement rates for local governments, ground rent collection had not been enforced until now.
The implementation of the Land Use Charge, which began last year, is designed to familiarize stakeholders with the process. Local government Chairmen are urged to support enumerators as they visit communities, ensuring the success of the initiative.
KGIRS has urged council Chairmen to collaborate in ensuring the smooth rollout of the law, with hopes that it will unlock Kogi State’s vast potential and improve the lives of its residents.
Mr. Femi Williams, Chief Executive Officer of New Wave Echo System, provided insight into the benefits of the Land Use Charge, noting that the law, which governs property taxes, has been in use in some Nigerian states for over 15 years to generate revenue.
Exemptions to the Land Use Charge include government-owned properties used for public purposes, places of worship, educational institutions, healthcare facilities, properties used by traditional rulers for official purposes, and properties below a certain size threshold defined by the state’s law.
In support of the initiative, local government leaders, including Cosmos Atabo of Olamaboro and Hon. Abdullahi Adamu of Lokoja, reassured that the 21 local government Chairmen in Kogi State would fully back the implementation of the law, emphasizing its positive impact at the grassroots level.
