approves key initiatives to drive revenue for the FCT

In a significant shift in fiscal policy, Nyesom Wike, the Minister of the Federal Capital Territory (FCT), has given the nod to a draft property tax regulation for the city of Abuja. This development marks a departure from the existing tax landscape, signaling changes in how property owners will contribute to the revenue streams supporting the development and maintenance of the nation’s capital.

Abuja, as the political and administrative center of Nigeria, has witnessed rapid urbanization and infrastructural development over the years. As the city continues to expand, the need for sustainable revenue sources becomes more pressing. In response to this, Minister Nyesom Wike has taken a bold step by introducing a property tax regime, a move that aligns with the global trend of utilizing property taxes to fund local governance and development.

The newly approved property tax regulation for Abuja introduces a structured system for assessing and collecting taxes from property owners. While specific details of the regulation may vary, property taxes generally consider factors such as property value, location, and usage. This tax is expected to contribute to the funding of essential services, infrastructure projects, and overall city development.

The FCT-Internal Revenue Service is said to have commenced the implementation of Capital Gains Tax in the FCT, as stipulated in the Capital Gains Tax Act 2004
The Minister of the Federal Capital Territory, Nyesom Wike, has approved a draft property tax regulation for the city.

The development means that property owners in Abuja will start paying property taxes.

The FCT-Internal Revenue Service is said to have commenced the implementation of capital gains tax in the FCT, as stipulated in the Capital Gains Tax Act 2004.

The Capital Gains Tax mandates the payment of a ten percent tax on the total amount of chargeable gains accruing to any person on the disposal of chargeable assets in a year of assessment.

Haruna Abdullahi, the Executive Chairman, FCT-IRS, made this disclosure when he spoke to journalists in Abuja on Sunday.

Abdullahi said the minister had approved some key initiatives to drive revenue for the FCT.

He said, “In the last three weeks, the minister has approved some initiatives that are huge and will certainly change the dynamics in terms of the bottom line. Just the other day, we submitted a draft proposal to the minister for the FCT property tax regulation.

“The FCT-IRS Act empowers the minister to come up with a property tax regulation for the FCT. So we had a long conversation and we suggested it to the minister, and he asked us to come up with a draft regulation, which we did, and he has approved the initiative.

“So we have an inter-agency collaboration whereby we review it because the draft was just done by the FCT-IRS, but that’s not enough; you need other stakeholders. So he approved the initiative to go ahead and review the draft and then come back.

“Subsequently, at the end of the day, he will sign the regulation, which is gazetted and implemented. So that alone should tell you that there is a huge positive impact on the bottom line of the IGR in the city.”