The Federal Government is set to overhaul the collection of property rates by phasing out cash payments and introducing a centralised electronic payment system for Metropolitan, Municipal and District Assemblies (MMDAs).
The Minister for Local Government, Chieftaincy and Religious Affairs, Mahama Ayariga, disclosed this on Monday, October 5, during the Government Accountability Series at the Jubilee House.
Under the proposed system, property owners will be able to pay their rates electronically through mobile money platforms and bank transfers.
Ayariga said the reform was designed to address inefficiencies, inconvenience and revenue leakages associated with the existing property rate collection system.
“Our existing property rates regime is plagued by inefficiencies, inconvenience to property owners and outright corruption, where monies paid end up in private pockets,” he said.
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He said the government also planned to improve the quality of services delivered by local authorities, arguing that better services would encourage property owners to voluntarily fulfil their rate obligations.
According to the minister, improving service delivery would reduce the need for aggressive enforcement measures against property owners who fail to pay.
Ayariga said the redesigned property rate collection framework was being developed in collaboration with the Ministry of Finance and development partners.
The proposed centralised electronic system is expected to simplify the payment process, reduce reliance on cash transactions and strengthen accountability in the collection and management of property rate revenues by local authorities.
The reform is also intended to improve revenue mobilisation at the local-government level while providing property owners with more convenient and transparent payment channels.
