The International Monetary Fund (IMF) has highlighted property taxes as a crucial but underutilised revenue source for Nigeria and other low-income countries aiming to achieve sustainable growth.
In a recent post on its blog, titled, “How Property Taxes Can Help Low-Income Countries to Develop,” the IMF suggested that effective property tax reforms, especially in urban centers like Lagos, could significantly bolster local government revenues, helping fund vital infrastructure and services.
According to the IMF, global governments will need to raise an estimated $3 trillion to meet development goals by 2030, with emerging markets requiring 4 per cent of their GDP and low-income countries a challenging 16 per cent.
For countries like Nigeria, which face high revenue needs and limited income and wealth tax frameworks, property taxes offer an accessible alternative.
The IMF’s findings show that countries in Africa and Asia collect only around 0.1 per cent of GDP through property taxes, compared to over 1 per cent in the OECD and up to 3 per cent in some advanced economies.
