Tenement rate is simply a pre-determined fee/tax charged and collected by a local government authority on a developed and occupied property. In other words, it is a rate or tax levied upon the owners or occupiers of property. Tenement rate is not levied or charged on an empty, unoccupied or undeveloped land. Usually, the tax or rate is levied on property which is not government or public owned. Examples of property on which tenement rate is not levied by local government authority includes; all land and buildings used exclusively for public worship, cemeteries and burial ground, property of recognized and registered public institutions certified for non-profit making, all palaces of recognized traditional rulers etc It is expected to be paid by the occupier of a property within a given time. In the case of a rented apartment, it is the tenant that should pay! However, a landlord and his tenant may agree otherwise.
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Hence, an unoccupied property, or an undeveloped land cannot be charged Tenement Rate in any part of Nigeria. It is only a local government authority in a state and an Area Council in the Federal Capital Territory covering the location of a property that can demand and collect tenement rates on such property.
WHO CAN COLLECT TENEMENT RATE?
The power to collect tenement rate is vested in the local government authorities across various states in Nigeria including the Area Councils in the Federal Capital Territory. The power of each Local Government/Area Council authority to collect tenement rate is however limited to the area of jurisdiction of the local government authority. Therefore, a Local Government or Area Council authority can only collect tenement rate on property lying and situate within the domain of its area of authority and cannot collect tenement rates on property outside the domain of its authority.
The power of the Local Government or Area Council authorities to collect tenement rate is derived variously from section 7(5) and 1(f) of the 4th Schedule to the Constitution of Federal Republic of Nigeria. The Taxes and Levies (Approved List of Collection) Act, Tenement Rate Laws of the various states, Bye-Laws of the various Local Government or Area Council authorities.
There are many judicial authorities in which the various courts in Nigeria have pronounced on the power of the Local Government or Area Council authorities to collect tenement rate. Examples of such cases is Abuja Municipal Council v. Planned Shelter Ltd & 5 Ors Suit No. CA/A/536/2018.
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WHO IS RESPONSIBLE FOR THE PAYMENT OF TENEMENT RATE?
The liability to pay tenement rate is placed primarily on the occupier of the property. Most times, the occupier of the property is usually the tenant except where the landlord or the owner of the property is himself the occupier. The liability to pay tenement rate and other rates, bills or charges is usually placed on the shoulder of the tenant in the tenancy agreement. Most tenancy agreements usually make provisions to the effect that the tenants shall be liable to pay the tenement rate, bills and other levies or charges on the property which may become due during the subsistence of the tenancy.
HOW MUCH CAN BE PAID AS TENEMENT RATE?
The local government authority of each State has its method and procedure of arriving at the rate to be paid by the occupier of the property as the tenement rate. It is advisable you check the Bye-law of the relevant Local Government/Area Council Authority to be well conversant with its method and procedure.
However, there are instances where the rating authority would bring an exorbitant bill as tenement rate to be paid by the occupier of the property. Most bye-laws of the Local Government/Area Council authorities usually have provisions on the procedure of objecting to the valuation of the tenement used in arriving at the tenement rate. Thus, any owner or occupier of the relevant property who wishes to dispute or object to such tenement rate can lodge a complaint in form of a Notice of Objection with the Head of the Valuation. Such Notice of Objection is mostly required to state the grounds of such objection. What is however common as part of the procedure is that the person filing the objection is mostly required to deposit with the Head of Valuation a sum equal to 50% of the amount of the tenement rate being disputed or objected to pending the hearing and final determination of the objection. Thus, depending on the outcome of the objection, the 50% deposited may eventually be used to offset a part or the whole of the tenement rate due.
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In summary, tenement rate is paid on an occupied land and not on empty undeveloped land and the rate is paid by the occupier of the land or property and not the landlord or landowner, except where there is a mutual agreement between the Landlord and the Tenant. The rate is collected by Local Government authority where the land is situated. Do not let anyone or body scam you or cajole you into paying tenement rate to them if they are not working for the local government authority.
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