Kano Landlords Raise Rents as Property Taxes and Levies Surge in Sabon Gari

Rising property taxes, multiple levies and disputed property valuations are putting additional pressure on landlords and tenants in Sabon Gari, Kano State, with property owners warning that higher government charges are feeding into rental costs.

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The development is unfolding in one of Kano’s busiest commercial districts, where landlords say the rising cost of owning and operating property is becoming increasingly difficult to absorb.

Basil Nnamdi Ulasi, Chairman of the Sabon Gari Landlord/Caretaker Association, said landlords were not opposed to paying legitimate taxes but argued that increased assessments, multiple charges and enforcement activities were placing significant financial pressure on property owners.

He said landlords ultimately have to consider those additional costs when setting rents, meaning some of the burden is being transferred to tenants.

Property Charges Become Central to Rent Dispute

According to the landlords' association, property-related charges have risen sharply in recent years.

The association has previously complained about increases in tenancy fees and other charges imposed by local and state authorities. In 2025, landlords in Sabon Gari took legal action over what they described as excessive tenancy fees after charges that had previously been relatively modest increased substantially.

The latest dispute has broadened to include property valuation, taxation and enforcement.

Landlords argue that the cumulative effect of these charges is increasing the cost of maintaining rental properties and reducing the income available to property owners.

For tenants, the concern is that higher operating costs could ultimately translate into higher rents.

Disputed Property Valuations Add to Pressure

Property valuation has emerged as another major point of disagreement.

The landlords' association has questioned the basis on which some properties are being assessed for taxation, arguing that valuations in some cases do not reflect the actual market value or economic performance of the properties.

Ulasi cited an example of a property he said could be worth between ₦60 million and ₦70 million but was allegedly assessed for taxation at about ₦700 million.

Such a valuation, if established, would significantly increase the property's tax liability and could create additional pressure on the landlord's rental income.

The association has consequently called for greater transparency and professional involvement in the valuation process.

Higher Landlord Costs Can Feed Into Rents

The dispute highlights a direct link between property taxation and housing affordability.

Landlords have to recover a range of costs from rental income, including taxes, maintenance, repairs, utilities and other operating expenses.

When government charges increase sharply, landlords may respond by increasing rents, particularly where demand remains strong enough to support higher prices.

That creates a chain in which a government revenue policy can eventually affect household housing costs.

However, taxation is only one factor influencing rents. Construction costs, land prices, demand, vacancy rates, infrastructure, household incomes and access to housing finance also determine rental prices.

Multiple Taxation Remains a Wider Kano Concern

The Sabon Gari dispute is not the first time landlords and businesses in Kano have raised concerns about multiple taxation.

Earlier reports showed landlords and business owners complaining about overlapping charges from local and state authorities. The complaints centred on tenancy fees, property-related rates and other demands imposed on the same properties.

This makes the current dispute part of a broader conversation about how property-related revenue should be collected and administered.

For investors, predictable taxation is important because uncertainty over annual property costs can make it more difficult to calculate rental yields and assess the viability of new developments.

Infrastructure Adds Another Layer to the Dispute

The taxation disagreement is occurring alongside concerns about infrastructure in Sabon Gari.

The landlords' association says inadequate water supply remains a significant problem in the densely populated district.

Some property owners have reportedly invested in boreholes and other private solutions to provide water for their tenants, while also facing additional property-related charges.

The association has also raised concerns about roads, although some rehabilitation work is reportedly taking place.

This creates a broader policy question: how should property taxation be balanced against the quality of infrastructure and public services available to property owners and residents?

For landlords, the issue is not only how much they pay but also what services and infrastructure they receive in return.

Rent Increases Could Affect Tenants and Businesses

The pressure extends beyond residential tenants.

Sabon Gari is also a major commercial district, meaning higher property costs can affect shops, offices and other businesses operating from rented premises.

Higher commercial rents can increase operating costs for businesses, which may eventually be reflected in consumer prices or encourage some businesses to relocate.

For residential tenants, higher rents can place additional pressure on household budgets at a time when accommodation already represents a significant component of living expenses.

The result could be greater demand for lower-cost housing in other parts of Kano, potentially increasing pressure on affordable rental stock.

Landlords Seek Dialogue With Government

The landlords' association has sought discussions with government authorities over the valuation and taxation issues.

The matter has also reached the courts, with the association seeking clarification around the legality and procedure surrounding property valuation and taxation.

According to reports, the landlords were encouraged during the proceedings to engage professional valuers and meet government representatives in an attempt to resolve the dispute through dialogue.

The association has also alleged enforcement actions against some properties and members following the dispute. Those allegations should be distinguished from independently established facts and the position of the relevant government authorities.

Taxation Must Balance Revenue and Housing Affordability

Property taxation can provide governments with an important source of revenue for infrastructure and public services.

But excessive or unpredictable charges can have unintended consequences for the property market.

When landlords face substantially higher operating costs, they may increase rents, defer maintenance, reduce investment or reconsider the viability of holding particular properties.

That can eventually affect the supply and quality of rental housing.

A transparent and predictable property-tax system, therefore, needs to balance revenue mobilisation with the need to maintain an environment in which landlords have an incentive to invest in and maintain rental properties.

Kano’s Property Market Faces a Policy Test

The Sabon Gari dispute demonstrates how taxation, property valuation and infrastructure can intersect with the rental housing market.

For government, the objective should be to improve revenue collection while ensuring that assessments are credible and charges are transparent.

For landlords, predictable costs are essential to maintaining properties and making long-term investment decisions.

For tenants, the ultimate concern is whether rising property costs translate into rents that increasingly exceed household incomes.

Resolving these competing interests will require stronger coordination between state and local authorities, property owners, professional valuers and other stakeholders.

Outlook

The continuing dispute in Sabon Gari highlights the need for greater transparency in property taxation and valuation across Kano's property market.

The issue also demonstrates why housing affordability cannot be considered separately from the wider cost of owning and operating property.

While higher taxes may increase government revenue, excessive or poorly coordinated charges can also raise rents, discourage investment and place additional pressure on households and businesses.

For Kano, the immediate priority is to resolve the taxation and valuation dispute through a transparent process while ensuring that property owners and tenants receive clearer information about their obligations.

More broadly, the Sabon Gari case shows that housing affordability depends not only on building more homes but also on creating a property-market environment where taxes, infrastructure, land administration and operating costs support sustainable rental housing.

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