Property Taxation, Urban Finance, and Housing Affordability in Abuja’s Satellite Towns

This study examines the role of property taxation in financing urban infrastructure and its implications for housing affordability in Abuja's satellite towns including Lugbe, Kubwa, and Nyanya. Property taxes represent one of the most efficient instruments for urban finance, yet they are among the most poorly administered taxes in Nigeria, constrained by outdated valuation rolls, low collection rates, and political resistance to rate increases. Rapid urbanisation in Abuja's periphery has intensified demand for infrastructure without a commensurate increase in property tax revenue to support it. Using a mixed-methods empirical design, the study analyses FCT Inland Revenue Service property tax assessment and collection data for 2,000 assessed properties in three satellite towns over five years. Hedonic pricing models are estimated to assess how property tax liabilities are capitalised into residential property values, revealing incidence patterns. A survey of 150 landlords and tenants assesses the extent to which tax costs are passed on through rental pricing, with implications for housing affordability. The study expects to find significant under-assessment of taxable property values relative to market prices and substantial pass-through of property tax increases to tenants. Recommendations address mass computer-assisted valuation adoption, property registration incentives, and the use of property tax increment finance to fund satellite town infrastructure. Keywords: property tax, urban finance, housing affordability, Abuja satellite towns, valuation.