Dwindling revenue: Senate to recover N6tr from property owners
Targets 2 million houses in 36 states, FCT
BY TUNDE OPALANA
Desirous of shoring up Federal Government revenue base, the Senate on Wednesday set up an ad hoc committee to investigate and recover over six trillion naira (N6tr) expected accrual from the non-payment of ground rent by property owners across the country.
Members of the committee are: Senators Adamu Aliero (PDP, Kebbi Central ); Sani Musa (APC, Niger East); Sam Egwu (PDP, Ebonyi North); Smart Adeyemi (APC, Kogi West ); Opeyemi Bamidele (APC, Ekiti Central ); Betty Apiafi (PDP, Rivers West) and Yusuf Abubarkar Yusuf (APC, Taraba Central).
Mandate of the ad hoc committee among others is to, investigate the inability of federal ministry of works and housing to investigate and recover these incomes for the government .
They are also charged to investigate the circumstances that led to the inability of the land use act allocation committee, saddled with the responsible of handing rent and licence matter, to carry out their responsibility on the matter .
The red chamber also called for a comprehensive data of Federal Government property that are sold to the public under the ministry of works and housing across the country.
The resolution of the Senate follows a motion by Senator Yusuf Abubakar Yusuf (APC, Taraba Central).
Coming under orders 41 and 51 of the senate standing rules, Yusuf said the Land Use Act has vested ownership rights to the Federal Government over its land in states and the Federal Capital Territory.
He stated that the rights include the power to control and regulate town planning, and physical development in relation to such lands and by extension prescribing and collection of any tax, fees or rates.
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Yusuf lamented that since 1992, over two million houses across the 36 states of the federation, including FCT have been built and allocated to beneficiaries by the federal government, yet majority have no evidence of payment of ground rent on their properties.
The lawmaker noted that with the current revenue challenges facing the country, there is a need for the government to look into other means of generating income than relying on oil revenue.
He added that investigation reveals that, the failure of relevant authorities to recover these funds has led the country to loosing over six trillion naira.
Other senators took turns to comment on the motion.
George Sekibo (PDP Rivers) while commending Yusuf said the motion ought to have been presented at least three months earlier.
He suggested categorization and computerization of lands as well recoding of payments made on landed property.
“There should be a perfect system of controlling the nation’s revenue collection system,” he said.
Gabriel Suswam, though agreed with the motion but want Yusuf to clarify if such land were sold by states on behalf of the Federal Government to individuals, stressing that the Federal Government cannot collect rent on such landed property sold to states.
He warned that his colleagues should not just assume that there is a six trillion naira waiting somewhere for the Federal Government to grab.
Suswan further enlightened that double collection of rent by both Federal and States governments may arise from if there is no clear cut categorisation.
Sabi Abdullahi (APC Niger) suggested that a committee should be set up to look into categorisation of land payment system. Ibikunle Amosun (APC Ogun) said the Federal Government has no right to collect ground rents in states except in the Federal Capital Territory (FCT).
But, he said that if the ground rent payment is well streamlined, it will be a veritable source of revenue for the Federal Government.
The committee was given one month to report back to plenary.
