Feature/OPED
Who Pays Tenement Rates?
By Barrister Paschal Nwosu
A tenement is any type of property, such as an estate or land, that is owned by one person and leased to another. Although a tenement has many units attached together under one roof, they are divided by walls to give each family or occupant his or her own space and privacy.
Tenement rates are property taxes paid by landlords and or Occupiers of a Building payable to local government Councils as part of their internally generated revenue.
Recently I conducted a study on the subject of tenement rates which has become a vexed issue because of the inherent abuses by arbitrary rate increases, failure of most landlords to pay their rates as at when due with the consequent transferred burden on tenants.
The objective of the study conducted through my organization, Centre for Development Initiatives and Advocacy was to determine the impact of tenement rates on small businesses and infrastructural developments in south eastern states with the collation centre at my law Office at 11 Ihioma road Amaifeke, Orlu.
It was found as a fact that there is no generalized systemic formula or active determinants employed in fixing the rates charged. The rates were quite exploitative and undermining the development of housing, including the development of local economy and small businesses. It was also found that there is a general evasiveness of taxes by landlords and the unfairly transferred burden on tenants as occupiers.
There are also associated fiscal leakages and corrupt practices by revenue officers in collusion with the so called revenue consultants whose roles have been increasingly challenged.
The uses of revenue agents and consultants remain the major cause of the arbitrary tenement rates increments for selfish reasons. It is also a sad development that governments can delegate their functions to organizations without mandate or legislative assent and creating the permissive leakages that has undermined infrastructural development.
Introduction to the controversy
Tenement rates are land use charges imposed on buildings developed by landlords to enable the generation of revenues necessary for the development of infrastructures and social amenities such as pipe borne water, street lights, parks, markets, roads, maintenance of drainages and sustainable sanitation services. In any system where the tenement rates and other associated charges such as the renewable registration of business remises are properly articulated by policy, legislation and honest endeavours, there are always clear infrastructural development, industrial and commercial stimulation which drives the local economy, creates jobs and promotes a spirited poverty alleviation and grass root development.
Who should pay tenement rates?
This is seemly a straight forward question which has been answered before. The landlord is the person that is expected to pay the tenement rate to the local government council or the occupier. The term the occupier may also refer to the landlord where he is also the occupant of the building and has not let or leased same out or sadly, the tenant in occupation.
However as it is usually the case, the landlord often lets out the premises to a tenant or group of tenants and thereafter takes no responsibility for the payment of the property taxes, especially in such cases that he does not reside in the premises.
Naturally, when the landlord is inaccessible or lives outside the jurisdiction of the local government, he cannot be reached and served with the appropriate demand notices and or summons. However, the use of the word occupier enables the revenue officials to hold the tenant responsible for the assessed rates in respect of the property.
The tenants on their part are not very willing to pay the arbitrary fees charged as tenement rates since the amounts are very high, annually increased, exploitative, often unreceipted, or fraudulently receipted, and or based on the evaluations of non existent market values and principles that are static, systemic and provocative for the rural dwellers who have no such intentions to sell their houses.
Who should not pay tenement rates
Tenants, pensioners as occupiers and owners of family houses should not pay tenement rates. But under the Land Use Charge law No 11 of 2001 of Lagos state all land based charges are payable on real properties located in Lagos with each local government council empowered to collect the charges within its jurisdiction as the collecting authority, a function which can be delegated to the state in writing to enable the State make assessments of land use charges and collect same on behalf of the local government councils. Can the local government delegate its constitutional functions to the State? I disagree that this was the intendment of the constitution and may likely lead to a denial of the local governments, their necessary IGR by the state. There is however an important exemption of those not subject to the tenement rates in Lagos which includes pensioners in occupation, and family houses. However tenants are expected to pay tenement rates subject to indemnity from their landlords as occupiers.
Opposition to tenement rates
Opposition to tenement rates are growing and championed by tenants and businesses angry at the excessive taxation, double taxation and corrupt practices of the revenue officials. Elsewhere in Abuja, NEXT LEVEL RESORT dragged the Abuja Municipal Council to court over tenement rates together with the FCDA as 2nd defendants. The plaintiff formulated three issues for determination to it, whether; AMAC is authorized by law to collect tenement rates? The plaintiff also asked the court to determine whether it does not amount to double taxation on NEXT LEVEL RESORT to pay ground rent to FCDA, pay taxes to FIRS, and in addition, pay tenement rates to Abuja municipal council? It also wanted the court to determine whether tenement rates can be paid to AMAC without the inspection to be carried out on the property?
Delivering judgment, DanlamiSenchi J held that by virtue of sections 7, and 303, and 318, and section 1 of the 4th schedule to the constitution, section 55(a):(5)of the local government Act of 1976 and the Abuja Area Council Act of 2001, AMAC is empowered to collect rates for the economic and physical development of the Council and for the provision of basic amenities in the council.
In Port Harcourt, the PHC council has concluded public hearing on a law to check, regulate and control the payment of tenement rates which provides that all owners of houses within Port Harcourt shall pay tenement rates annually as assessed by the Port Harcourt City Government authorized valuer.
However, speaking at the public hearing, the NBA representative OSIMA GINA urged the councilors not to make laws that will infringe on the fundamental rights of the people. In the South- East, protests has only been taken up in organized form by medical practitioners whilst the people groan and revenue collectors grow fat on public grief. The uses of revenue consultants must be discouraged in the backdrop of enabling reforms and fiscal structures of county administrations.
Conclusion
The South Eastern governments need to review the regulations of tenement rates and ensure that vacant houses, pensioner occupied houses and family houses and rural dwellers are exempted from tenement rates There should be a drastic reduction of tenement rates in Areas outside of the capital cities to improve housing development in these areas and arrest rural urban drift. The arbitrariness in the fixing of tenement rates can be checked by regular and physical inspection of the premises to be rated by appropriate valuations.
At the same time, we cannot but affirm the illegality the action of the Lagos state government under the Land Use Charge law No 11 of 2001 of Lagos state, in seeking and accepting the delegation of the function of the Local governments, to collect tenement rates enshrined in the 1999 constitution which empowers the local governments to evaluate and collect tenement rates in the local government Areas as specified in the Schedule of the said constitution.
This is therefore, a violation and ràpe of our constitution
The Lagos state government in usurping and performing this important function undermines the autonomy and development of the Local government Areas in the State, notwithstanding its good intentions, if any.
Corruption: The World Bank lists of Nigerian looters and the Code of Conduct Tribunal.
The Nigerian public was shocked by the revelations by the World Bank, the apex international Credit and development bank which shows the massive looting of the Nigerian economy in the past decades evidenced by foreign accounts owned by the political class, public officers, and the military with outstanding performances by the erstwhile past heads of states, and the powers behind the emerging political challenges in the country.
I was devastated by the list not only because of the stupendous amount of loot lying in foreign banks and oiling the British economy and other EU nations that has paid lip service to the fight against corruption in Nigeria but also the sheer brazen thievery and primitive acquisition of wealth with its attendant stultification of our economy. It is estimated that over four hundred billion dollars made up of oil revenues, diverted international loans and internally generated revenues has been stolen and or misappropriated, most of which has found its way offshore and lying in foreign Banks.
Today Nigeria ranks as one of the poorest nations in the world, threatened by starvation, instability, unemployment, AIDS, poor health facilities, armed conflicts, energy crisis, health crisis, bombastic insecurity, and a devastating civil war with Islamist terrorists with a deluded leadership that seeks to develop the strongest economy in Africa in the backdrop of the chasm of odouriferous miasma of stifling corruption, failed infrastructures and debilitating energy crisis.
By Barrister Paschal Nwosu [email protected]
Culled from The Nigerian Lawyer
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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