Project Materials




Need help with a related project topic or New topic? Send Us Your Topic 





The formation of new states in Nigeria in 1976 resulted in the formation of new metropolitan centres, the rapid expansion of which raised the need to finance the supply of public amenities.

Real estate taxation is an important source of funding. One of the solutions presented as a means of increasing revenue to fulfil the financial demands of cities in less developed countries is property tax reform.

Property grading is used at the local government level in Nigeria to generate cash for public purposes. Rates are levied not on the entire country, but on a specific location that is deemed suitable for rate imposition and with the agreement of parliament.

This permission is not granted on every occasion of rate collecting. The authority is broad, granted by statute without limitation and for all periods.

Because of the overall lack of interest among property ratepayers and the reluctance of some assessment authorities to divulge information, property rate administration is frequently shrouded in mystery. This is based on the notion that the value of each taxpayer’s property is at the heart of property tax (rate) management,

ensuring that each taxpayer bears a fair share of the overall tax levy. Property owners have the right to know the approximate percentage of estimated market value used for tax (rating) assessment reasons.

If the local government is to exist and be viable as the third tier of government, it must have some local money. Property rating is the most obvious source of such revenue. Property rating not only influences development but is also a substantial source of local government money used to offset the cost of local government services such as parks, burial grounds, and marriage, death, and birth registration.

It is important to note that rate is a type of tax, so the terms property rate and property tax are interchangeable. While in rating, the amount of revenue required by a rating authority is first decided and then distributed among rate payers according to a pre-determined standard, in other types of tax, the exact amount to be generated at the time of imposition is unknown.


From investigation and empirical data on property rating in general, and in Enugu state in particular, one observes a gold mine with proper handling waiting to be exploited, as can be seen in Enugu north.

It is thus the aim of this paper to examine the administration of property rating in the state, how well informed the rate payers are, their attitudes, improvement in the system, how well the system has been paying off, and, of course, a critical appraisal of the system.

The goal of this paper is to investigate and identify the sources of local government finance, their problems, methods of property assessment as provided in some rating laws/Edicts, the impact of the rent control edict on property assessment,

the prospects of property rating, and make recommendations not only on how to expand the local government financial base with particular reference to the property rating system, but also on how to implement the rating in the country. The goal also involves the possibility of site value grading as a means of increasing local government funding.


The local government reform law delegated the function of rate collecting to local governments. Civil personnel staffed the valuation unit in the former Anambra State.

The unit organised tenement rating and created value lists, which were forwarded to the rating authority after proper procedure to serve demand notifications and collect tenement rates.

The problem of collection is one of the most serious rating issues in most rating bodies. A high rate of default has occurred from a weak or inadequate administration. For example, in 1978/79, 21% of the expected rate income was collected in Enugu North. Some rating agencies are now operating on a commission basis.

Most local rating authority areas do not actively pursue the issue of pursuing defaulters for two reasons:

(a) The majority of defaulters are the élites who will decide such cases.

(b) For political reasons, landlords are political power brokers that local rating authority chairmen do not want to embarrass by prosecuting.

Part xiii of this Edict, titled “Rating,” and containing sections 103 to 146, enables a local government area, often known as a rating area, to impose property ratings on property owners as a source of revenue. In Enugu state in general, and Enugu North local government in particular, flaws in the current property rating systems are easily visible,

preventing good implementation of their function. Most of the property rating administrators at the local government headquarters are mere technicians, while others are illiterate,

which hinders their ability to make sound judgements based on the nature of the properties from which they collect data to be used by rating valuers in the ministry of local government in Enugu to arrive at the annual values of the properties.

This problem was exacerbated throughout the political era, when employment prospects were nationalised rather than based on qualifications.

In addition, most property owners in Enugu are illiterate and unaware of their rights. The majority of them have no idea why they should pay property taxes at all. The assessors’ (valuation officials’) uncertainty in their notice to property owners regarding the assessed value adds to the ugliness of the issue.

They only indicate the assessed annual value, not the actual rate charged. When most landlords see this, they simply deafen their ears and refuse to pay outright, mistaking the annual value for the rate payable value.

They are only made aware of this premise through litigation, which is not in the best interests of the local government due to the cost and time commitments.

Another consideration is how to align the local property owners’ rating burden with the value of services delivered by government activity. The subject of how to improve the current terrible state and weaken rural development programmes through appropriate management of property rating revenue is implicit in this dilemma.


The primary goal of implementing property rating in local government is to generate revenue from the source. The revenue earned is used by the local authority in the area where the tenements/properties are located to provide necessary services that government funds cannot easily cover.

Local government provides necessary services like as water and electricity provision, wad and bridge repair, and augmenting the government grant for the payment of personnel salaries who are not employed by the government. They are also responsible for providing a good drainage system and planning for their local government area.

It is a truism that no government could operate for long without the ability to levy and collect taxes.(Barlowe.R)continues to argue that the capacity to tax is the single most important power upon which the entire national fabric is built. It is as essential to the nation’s survival and success as the oxygen he breathes is to the natural man.

Thus, the taxing power supplies the government with the majority of the resources it needs to finance its many operations and functions, as well as a tool for different fiscal and regulatory objectives.


This work cannot be considered comprehensive. This is due to the fact that property rating is such a broad topic that it could not be effectively covered within the time constraints and volume margin.

In addition to the aforementioned obstacles, the Enugu State North L.G.A played an important part in thwarting the researchers’ efforts. Again, administrators’ belief that property rating documents were primarily confidential and could not be made available to researchers without government consent ran into trouble.

Furthermore, there was reluctance on the side of the property owners to reveal vital information on their own areas of the administration due to ignorance about the goal of the research.

This was so pervasive that the majority of them either refused to gather and fill out the questionnaires or reflexively avoided specific personal interview questions.

Despite these constraints, and with perseverance and a strong commitment to the task at hand, the researcher was able to break through and collect sufficient data to make objective deductions and generalisations about property rating administration in Enugu North Local Government Area, Enugu State.


A) PROPERTY RATING: Also known as local government value of property, this is the sum paid to the local government coffer per naira of the dateable worth of the property. It is a rate-based local government tax levied on the basis of ratable property values.

B) RATE: Payment for possession or occupation of something valuable; in other words, rate is payment for the advantage derived or derivable from services.

C) RATEPAYERS: Ratepayers are property owners whose properties can be ratified. The term may apply to property occupants or agents of property owners, particularly if the property owner is an absent landlord.

D) RATING AUTHORITY: A rating area or a local government with the authority to administer property rating. Wherever it appears in this article, it refers to Enugu North Local Government.

E) LOCAL GOVERNMENT FINANCE: The management of money inflows by the government, that is, the receiving (of income) and using (or expenditure) of funds.


Property rating administration encompassed the four primary board arms involved in property rating, namely assessment, collection, payment, and application machineries.

OWNER: Includes the person receiving the rent of the tenement for the time being, whether on his own account or as agent or trustee for another person, or who would receive the sum if such tenement were let to tenant, and the holder of a tenement directly from the state, whether under lease, licence, or otherwise.

PROPERTY: The definition of property varies not just between persons but also between professions. Property, according to estate surveyors and valuers, consists not of objects but of rights over or in things possessed. In other words, property consists of the rights that owners have over the land that they possess. These are the rights

(a) Utilisation rights (b) The ahenate’s right

(c) The right to claim title; (d) the right to assimilate; and (e) the right to pass by succession. These are known as “bundles of right” or “property power.”

RATE NAIRAGE: The amount in kobo that will be charged for each naira in the estimated ratable value. Enugu State’s current exchange rate is 10k (ten kobo).

STATE: In this context, state refers to Enugu State.

LOCAL GOVERNMENT: The term “local government” in this thesis refers to the Enugu North Local Government Area of Enugu State.

APPRAISER: A valuer designated by the rating authority to appraise the value of hereditaments in the rating authority region.

HEREDITAMENT: Any land, tenement, or property that is or may become hable to any rate in respect of which a value list is made feasible by the Rating Act. In other words, any tenement on the variant list qualifies.

SPOT VALUE: The amount at which a scheduled tenement can be ratable.

RATING AREA: The area in which any rating authority operates. Every local government area has been designated as a rating area under Section 99 of the Local Government Edict.

Need help with a related project topic or New topic? Send Us Your Topic 


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.