Why property tax is important for developers, unoccupied buildings

Stakeholders in Nigeria’s housing sector have explained why property tax is necessary, saying that the introduction of such a tax along with tax reliefs are good measures to tackle housing deficit and growing issue of unoccupied buildings.

The stakeholders are also of the view that besides encouraging affordable housing delivery, property tax can compel owners of vacant properties to either sell or rent them, thereby reducing the number of unused houses across the country.

According to them, economic challenges make it difficult for both the private and public sectors to deliver affordable housing without significant policy changes.

The stakeholders spoke at the annual African Housing Awards organized by Housing Development Advocacy Network (HDAN) which also serves as a platform for recognizing individuals and organizations contributing to the growth of Nigeria’s housing sector.

“We should have policies that exempt those building social or low-cost housing from paying certain taxes. This will motivate people to construct homes that are affordable,” Festus Adebayo, executive director of, said, tasking the government to provide incentives to achieve this goal.

Adebayo called on the government to actively participate in housing delivery by allocating free land and making sufficient budgetary allocations to housing projects.

Ahmed Dangiwa, Minister of Housing and Urban Development, however, affirmed government’s commitment to addressing the country’s housing deficit under the Renewed Hope Cities and Estates Programme.

He announced that 14 construction sites across the country are currently active, with a total of 10,112 housing units underway.

“We are constructing 12 Renewed Hope Estates, each comprising 250 housing units in 12 states, alongside larger urban projects in the FCT, Kano, Lagos, and other states. These include plans for new developments in Enugu, Borno, Rivers, and Nasarawa states,” Dangiwa said.

Shehu Osidi, managing director of the Federal Mortgage Bank of Nigeria (FMBN), commended HDAN for its commitment to sustainable housing advocacy.

Osidi disclosed that FMBN has provided N100 billion off-takers’ guarantee to facilitate the development of the Renewed Hope Cities and Estates.

He also highlighted new initiatives by the bank, including rent assistance, non-interest mortgages, and the introduction of a Diaspora housing fund mortgage to expand access to affordable housing.

“This event is a laudable initiative, inspiring us all to contribute more to the sector. FMBN remains committed to innovative financing models and stakeholder engagement to ensure housing accessibility,” Osidi said.

The African Housing Awards, organized by HDAN, also served as a platform to recognize individuals and organizations contributing to the growth of Nigeria’s housing sector.

According to Musa Sada, former Minister of Mines and Solid Minerals and Chairman of the occasion, the awards celebrate excellence and encourage players in the sector to work towards solving the nation’s housing challenges.

“Housing is a fundamental human right. About 80 percent of Nigerians rely on social housing, and generating innovative ideas is critical to achieving a vibrant housing sector,” Sada noted.

With states like Sokoto and Nasarawa already making strides in housing development, stakeholders hope that these reforms and government-backed initiatives will alleviate the country’s housing challenges and provide affordable options for millions of Nigerians.