Built environment operators estimate that approximately N36 trillion is lost annually to unclaimed land in Nigeria.
Land registration costs vary depending on location. However, the average registration fee for land parcels in Nigeria varies by state and local government, but has been fixed by operators at NOK 1 million, which was used as the basis for this estimate.
In an exclusive interview, Ayodele Odele, Treasurer of the Nigerian Institute of Property Surveyors and Valuers, said that out of the 40 million households in the country, only about 10 per cent have formal property rights, which means they are unable to communicate with the government. He said this means it is legally recognized. Subject to taxes and other regulatory fees.
He said: “According to the Nigerian Bureau of Statistics and African Center for Affordable Housing Finance, the total number of households in Nigeria is about 40 million.
“Furthermore, as the Minister of Housing pointed out, the proportion of households with formal property ownership is around 10 percent. Therefore, households without formal property ownership (informal housing market) account for 90 out of 40 million households. %, or 36 million households.
“The loss of income per household is determined by the amount that the government normally receives from households with formal property rights (e.g. property taxes, registration fees, income taxes, building permits, licenses, etc.). Let us assume that an average of N1 million can be collected per year per household with
“The total potential income from informal households is estimated as 36 million households multiplied by 1 million naira per household, equivalent to 36 trillion naira per year. Therefore, the government expects that the informal housing market will generate approximately 36 trillion naira per year. This could amount to a trillion naira in lost revenue. This is an estimate and the actual figure may vary depending on the specific taxes, fees and charges applicable in different regions of the country.”
An official at the Lagos Ministry of Lands, who spoke to our correspondent in confidence as he was not authorized to speak on the matter, said the exact amount of land registration varies from local government to local government.
He said, “Land registration in places like Epe area of Lagos would amount to a total of N4.5m, especially if such a person is not a public servant.”
Another land developer, Dr. Kolade Adepoju, said he recently completed the documentation of 10 hectares of land 600 meters north of Ibeju Lekki, of which he estimated 4 to 5 meters north of each plot.
He said, “On average, it costs close to five million naira per plot to acquire land title.”
The Chief Executive Officer of Fame Oyster & Company, Olufemi Oyedele, said the amount in Lagos would depend on the location of the land.
He added: “In Ikedera, for a 648 square meter plot of land, it would be about 3.5 meters north to north.For example, in 1991 the payment for land registration was about 20,000 naira.However, the situation has risen astronomically. The cost of purchasing land, the price of buildings, and the rents collected have increased. In all cases, to comply with global best practices, land registration should not exceed 2.5 percent of the value of land. There are other ways to earn income from land other than registration.
“There are ground rents, lease fees, and neighborhood improvement taxes, which in some states are combined into land use fees.Other taxes include inheritance taxes, capital gains taxes, withholding taxes, and building approval fees.Some. Land registration fees are high in the state. If prospective property owners feel that the land registration fees are prohibitive, they can petition the governor for review.
Meanwhile, Ota Ogun State lawyer Tejideen Oluwadare said the value of the land is important in such transactions.
“The value of land is important and currently land on the outskirts of Ota Ward is valued at more than N20m. Land ownership up to the completion stage is close to or even more than N5m.”
Another lawyer, Hassan Yakubu, while affirming the N5 million estimate in Ogun State, said the associated bottlenecks contributed to the high cost of land documentation.
“It must be kept in mind that it will take time to issue the certificate of occupancy after the survey and other valuation fees obtained from the Land Department,” he said. Therefore, to get things done quickly, you need to set aside funds for staff PR. ”
In September, the Ministry of Housing and Urban Development and the World Bank Group committed to addressing 90 percent of Nigeria’s unregistered and untitled land.
