FREQUENTLY ASKED QUESTIONS ON TENEMENT RATE AS LOCAL GOVERNMENT TAX IN NIGERIA

By ESV Ibiam Alexander

Tenement rate is a tax that should be paid on development and occupied properties in local government in Nigeria to support the local government.

Who pays:

The occupier of the property is primarily responsible for paying the tenement rate unless there is a mutual agreement between the landlord and tenants.

What it is

Tenement rate is a property tax that is paid to the local government authority where the land is located, it is usually annually and the amount is based on the annual value of the property.

What it is not

Is not charged on undeveloped land, unoccupied properties or government-owned properties

Who collect it

The local government is saddle with the responsibility to collect and administer tenement via the enabling laws governing it operations.

How its calculated

The amount you pay is based on the annual value of the property after it must have determined by a qualified estate surveyor and for most local government, the rate of assessment is 4k for every 100k known as the rate nairage.

Which law empowers the local government to charge tenement rate

1. Section 38 of the 1999 constitution as amended for the 774 local government
2. Section 299(a) of the constitution confers the national assembly with the exclusive competence, governs over FCT
3. Section 52 subsection 1, section 56 subsection 1 (J) of the 4^th schedule to the constitution, which reads that the local government have such powers and duties as are conferred or imposed upon it by this act or any other enactments.
4. Section 55 which reads that exclusive powers of the local government subject to the provision of the act or any other enactment a local government shall have responsibility for and power to make laws for all the following matters, that is collection of community tax, property and other rates and other designated revenue.