• Sunday, June 16, 2024
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BusinessDay

World Bank, FG partner to create land banks as states battle to increase IGR

World Bank

Faced with paucity of funds and dwindling resource allocation from the federation account, government at Nigeria’s sub-national levels, aided by the World Bank, are shifting focus to harnessing lands and other natural resources for economic gains.

When implemented, the policy will ensure fair compensation for land, standardise and ensure clarity in compensation rates in each state.

As part of the process, the Federal Ministry of Finance, Budget and National Planning (FMFBNP), assisted by the World Bank is playing a leading role in helping states strengthen deployment of Geographic Information Systems (GIS) Technology to strengthen Land Administration and Property Taxation at the subnational level.

This is expected to provide states with GIS data, orthophotos of property mapping and software to support enumeration.

Under the World Bank assisted programme, states who are able to update their property records by June 2021 and capture at least 50 percent of the properties that have electricity connections in urban areas will each unlock $2 million in performance grant under the World Bank funded States Fiscal Transparency, Accountability and Sustainability (SFTAS) Programme for Results.

Recall that the National Economic Council (NEC) at its last meeting mandated states to establish land banks to enhance investments in agriculture and agro processing, among others.

Over the years, land administration in Nigeria had faced several challenges following struggles for state autonomy, which created problems of control, especially in selecting the most efficient system for Land Administration in the country.

These challenges were further compounded by the scarcity of suitable indigenous technical expertise, poor capacity building programmes, huge capital outlay required to effectively harness land as a natural resource.

The absence of technical support for the implementation of modernisation also affected the level of property development.

Goddy Ehimikhuae, a constitutional lawyer and land expert, sees the move as long overdue.

“This, apart from being a move in the right direction, I will say is even long overdue. With such land banks, possessory rights become easier and government can convert abandoned and tax delinquent landed properties into productive use, people can easily get land for investment purposes, while more taxable revenues can be accessed by the government for development purposes,” he told BusinessDay.

Those who know say it is however imperative that these property records reflect accurate information about the name of the owner/occupier, size of the land parcel, size of the building, use of the land/property, among other criteria required by the programme.

BusinessDay understands that many states are already at varying stages of GIS deployment, with Kaduna, Kogi, Lagos, Oyo, Nasarawa and Gombe states leading the way.

The Peer Learning Events will have these states showcase their deployment experience and avail aspiring states still early in the process of deployment, an opportunity to break free of challenges that could derail and hinder GIS deployment at state level.

Olanrewaju Ajogbasile, senior programme manager of the Nigeria Governors’ Forum SFTAS Technical Assistance Project, said the NGF is holding two Peer Learning Events (PLEs).

According to Ajogbasile, “States were determined to get it right this time and ensure old mistakes are not repeated, thus, the need to learn from the experiences of others who have led the way in GIS deployment. The GIS deployment and the consequential benefit of holding accurate land and property records will bring sanity to land administration across the country, while ensuring that fair and right taxes, fees or levies are charged.”

The World Bank will train partners and implementing agencies on the SFTAS programme state officials, states project managers for the GIS deployment, directors of lands (Ministry of Lands/GIS Agency); directors, Property Tax (State IRS), and states SFTAS Focal Persons.

Expectations are also that each state will as part of the efforts to strengthen the land administration system, engage relevant civil societies and associations including the citizenry to ensure smooth implementation of critical reforms that may follow.

Modibo Bakari, a property lawyer, cautioned against official abuse by government officials.

He noted. “Section 1 of the Land Use Act vests all land in a state on the governor of that state to hold on trust for the beneficial use by Nigerians. But government officials use the opportunity to allocate the land to themselves and they must correct such abuse.”

Bakari sees the project as being capable of checking “double allocation” of lands and other sundry malpractices.