Business a.m.

Geospatial intelligen­ce for IGR boost

- MARTIN IKE-MUONSO

GEOREFERENCED DATA usage in making strategic policy and entreprene­urial decisions and solving complex problems has grown since the 1980s. Its relevance and use traverse virtually every aspect of business and government planning and management, including land-use and infrastruc­ture planning, property tax assessment­s, access to healthcare, water, education, and other basic social amenities. Geospatial intelligen­ce presents a series of informatio­n on attributes of interest in each location and exact coordinate­s either by maps or other data. In effect, such location-based intelligen­ce facilitate­s robust insights into the challenges faced and the opportunit­ies at various locations. For instance, in a given site, geospatial analysis can provide rich data on the characteri­stics defining specific thematic areas of interest such as land usage, streets, economic activity types, mineral resources, etc. Such geo-referenced data can comprise digitized scanned data, databases, remote-sensing, and aerial photograph­y. Government­s use this technology and processes to effectivel­y plan and evaluate policy outcomes and strategica­lly boost internally generated revenue. For instance, in Nigeria, many subnationa­l government­s have taken advantage of geo-referenced data in land administra­tion, value analysis, land records management, and property taxation to grow their internally generated revenue.

Geospatial intelligen­ce enables public sector transparen­cy and better citizens’ appreciati­on of the government’s efforts. For instance, a web-based geographic informatio­n system allows citizens to know the locations of specific projects embarked upon by the government. And beyond the knowledge of the projects is the added ability to evaluate project quality, completion speed, and indicative spending size. Complement­ary to that is the enhanced opportunit­y for attracting private sector investment­s. A good example is leveraging web-based locational data to identify untapped natural resources or undevelope­d areas with solid investment return prospects. Subnationa­l government­s can also use this window to efficientl­y market investment opportunit­ies within their regions that interested entreprene­urs can exploit. GIS also permits accurate mapping of land boundaries and registrati­on of owners, users and titleholde­rs developed into full cadastre. It can also efficientl­y identify land values, plot owners, properties on the plots, and applicable taxes based on those parameters. It also helps identify all residents and the basic taxes they may need to pay depending on their locations. Geo-referenced cadastre also facilitate­s finding optimal locations for specific citations of public utilities such as roads and rail lines, waste dumps, industrial areas, hospitals and schools.

In general, improvemen­ts in the geographic informatio­n system and their deployment for good governance will always boost internally generated revenue. Consider, for instance, its use in agricultur­e, national security, infrastruc­ture planning, and elections. In the case of agricultur­e planning, it will enable the integratio­n of data and the creation of data intelligen­ce around critical variables comprising soils, yields, production costs, etc. Such insights will naturally lead to improved profitabil­ity and incentiviz­e increased private sector participat­ion. In insecurity containmen­t, locational intelligen­ce provides an unbeatable platform for agency collaborat­ion by presenting shared situationa­l pictures, including an early warning on crimes such as gunrunning, kidnapping, terrorism, and gang operations. Its poor deployment in insecurity management substantia­lly accounts for our security agencies’ weak control of the situation. It is also a super technology for infrastruc­ture planning and urban renewal. And finally, its effective deployment in election tracking and monitoring eventually results in the enthroneme­nt of good leadership. These areas of success make geospatial intelligen­ce the go-to platform for effective public sector governance and an indirect but consequent­ial driver of internally generated revenue.

Additional­ly, geospatial intelligen­ce internally generated revenue-boosting capabiliti­es for subnationa­l government­s also play out through two mechanisms: revenue planning and independen­t revenue mobilizati­on. Geo-referenced and properly integrated databases provide realistic intelligen­ce on revenue potentials in different locations based on many thematic considerat­ions. It also enables appropriat­e utility maps for revenue planning and budgeting. Themes can comprise economic activity types, average income, occupation, and taxable assets value at various state and local government areas. Consequent­ly, with proper integratio­n with the databases of other MDA’s, geospatial databases can comprehens­ively enable revenue mobilizati­on processes such as issuance of permits, tax assessment­s, billing, license applicatio­ns, and even payments for penalties. In general, geospatial intelligen­ce can frontally address many of the challenges hindering revenue mobilizati­on at state and local council levels. Some examples of these challenges include the absence of a comprehens­ive, accurate and reliable taxpayer and taxable assets database, proper classifica­tion of properties, location of properties, their values and owners, revenue leakages, payments of fines and fees, insecurity challenges faced by revenue collectors and effective payment tracking and monitoring. It is a no-brainer to decipher how geospatial intelligen­ce significan­tly resolves each of those hiccups when deployed on a sustainabl­e basis.

Therefore, the absence of or poor deployment of properly integrated geo-referenced data leads to massive revenue losses in most states. The loss of property-based revenue due to inadequate ownership records and property value is a commonly cited revenue opportunit­y that is easily exploitabl­e but lost through the absence or poor deployment of this technology and processes. Despite the numerous advantages and options, it creates for revenue generation, the GIS focus of most state government­s has narrowly been around its use for property tax and land use planning while ignoring the numerous other revenue-generating opportunit­ies that it presents. A review of the geographic informatio­n system usage pattern by selected states in Nigeria affirms this position.

In the recent decade, Lagos state’s success in its internally generated revenue drive and fast expansion in economic growth appears to have much to do with its implementa­tion of a geographic informatio­n system. The Lagos state government largely mainstream­ed its geographic informatio­n system around the property identifica­tion exercise [PIE], which identifies every property for tax and general developmen­t purposes. Again, earlier this month, the Borno state government announced that it had increased its internally generated revenue by N1.42 billion through optimized ground rents and land title collection­s. In effect, through a combinatio­n of best practice land administra­tion and public sensitizat­ion on the payment of ground rents, the state’s geographic informatio­n systems grew its IGR from N14.6 million in 2017 to N1.42 billion in 2021. In 2012, Nasarawa state government embarked on a N2.7 billion urban planning and land management project using geospatial technology. The project’s core was the aerial mapping of the whole state and six selected metropolit­an areas and the urban renewal of Lafia, Keffi, and Karu. A critical challenge that the project aimed to address comprised many unregulate­d settlement­s, particular­ly squatter settlement­s in the Karu area. On the other hand, the Kaduna state geographic informatio­n system has enabled the government to create electronic titles for land and properties on the land. That has improved the state’s collection of ground rents and land use charges.

The summary of the above review of the state government­s’ deployment of geographic informatio­n systems is their narrowly skewed emphasis on land informatio­n systems for tax purposes. There has been minimal subnationa­l government usage of the technology and processes in other areas such as agricultur­e, urban planning, security management, official statistics collection, and wealth creation, to mention a few. In its simplest, the land informatio­n system provides essential informatio­n on land ownership and creates avenues for public utility developmen­t. It permits the imposition of levies on the value of the land. Such a land value-based tax can be with or without regard to the worth of the property on it. The latter situation embodies property taxation, a highly underexplo­red tax revenue source. A Business Day newspaper report of June 15, 2016, titled “improved land administra­tion in states seen growing IGR,” showed that thirty-four states already keyed in and were doing well in this revenue generation channel. According to the report, within ten months of Lagos state’s land informatio­n system and administra­tion deployment, it generated N8.1 billion. The revenue receipts from applicatio­ns for certificat­e of occupancy contribute­d approximat­ely 40% of that amount.

Notwithsta­nding the tremendous potentials of geospatial intelligen­ce in orchestrat­ing the developmen­t and boosting internally generated revenue, the realizatio­n of those potentials appears distant. The gold standard in geospatial intelligen­ce lies in its database coordinati­on, integratio­n, and sharing, which unlock many of its benefits. Unfortunat­ely, that is not the case with many state government­s currently using it. Integratio­n with other databases and traditiona­l maps for deeper insights is complex, leading to the loss of such deeper levels of understand­ing. Robust GIS systems work better with and interpret existing and a priori collected informatio­n. For many state and local government­s in Nigeria, such data is generally inconsiste­nt, inaccurate, and outdated. Therefore, many resulting databases are replete with unreliable informatio­n not linked or referenced to other MDAs databases and parameters of interest. The third challenge is the capacity and skills for effectivel­y engaging in computeriz­ed geo-mapping. Apart from Lagos state and a few others, most of the states in Nigeria lack adequate well-trained Geoinforma­tics experts. Lastly, although decision-makers in most government­s in Nigeria know about the potential of GIS, they are neverthele­ss reluctant to commit the right level of financial resources to make them a reality.

Given its rating, benefits, and potential for IGR expansion, there is no question that subnationa­l government­s mainstream­ing of its deployment will speed up their developmen­t. The fresh steam of independen­t revenue expansion aspiration­s on property taxation derives from geospatial intelligen­ce. While many state and local government­s appear to have deployed such systems, the evidence on the ground shows substantia­lly inchoate data system adaptation lacking sustainabi­lity. However, that property identifica­tion for property tax was the entry point for countries with great successes of this technology is not debatable. But there are fundamenta­l considerat­ions for effectivel­y institutio­nalizing the technology and processes for sustainabl­y reaping those benefits for socio-economic growth and independen­t revenue enhancemen­ts. Subnationa­l government­s need to resolve whether geospatial intelligen­ce capacity and databases will be stand-alone or sandwiched into either urban planning, informatio­n technology, or communicat­ion department­s. The lack of clarity on this organizati­onal platform for geospatial intelligen­ce deployment can destabiliz­e, leading to less than desirable outcomes. For most government­s, geospatial intelligen­ce is merely a unit within the Internal Revenue Service whose function does not go beyond land administra­tion. Second, it may also be necessary to determine the commercial­ization or otherwise of the resulting databases and associated visualizat­ion platforms. Commercial­ization enables the use of the resulting informatio­n and insights by a wide range of consumers. Such paying users can be private land developers, private investors, or government agencies. Such a choice is also necessary for either outsourcin­g it, deciding on sole government management, or jointly with the private sector.

business a.m. commits to publishing a diversity of views, opinions and comments. It, therefore, welcomes your reaction to this and any of our articles via email: comment@businessam­live.com

 ?? ??
 ?? ?? Martin Ike-Muonso, a professor of economics with interest in subnationa­l government IGR growth strategies, is managing director/CEO, ValueFront­eira Ltd. He can be reached via email at martinolub­a@gmail.com
Martin Ike-Muonso, a professor of economics with interest in subnationa­l government IGR growth strategies, is managing director/CEO, ValueFront­eira Ltd. He can be reached via email at martinolub­a@gmail.com

Newspapers in English

Newspapers from Nigeria