UNIFIED CHARGEABLE RATES FOR LOCAL

GOVERNMENT TAXES AND LEVIES IN LAGOS STATE

The Lagos State Government passed the Below are some of the highlights of the issues
approved Levies for Local Government Council covered by the Law:
(LGC or LGA) and Local Council Development
Areas (LCDA) into law on 12 July, 2010, the law is Scope and Application of the Law:
to be cited as Local Government Levies The stipulation provided
(Approved Collection List) Law, 2010 (“the Law”). The provision of the Law, which was assented to on by Section 13 is in
The Law is enacted to regulate the administration 12 July 2010, covers all levies and taxes to be respect of penalties for
of and unify the levies and taxes collected by collected by the LGAs and LCDAs in Lagos State. The breach of any bye-law
LGCs and LCDAs within Lagos State (“the State”). list of approved levies and taxes to be collected by or charging fees for use
LGA and LCDA includes:
The Law consists of 15 paragraphs and a schedule
of LGA properties and
of approved levies and taxes to be collected by 1. Shops and Kiosks rates; public utilities or for
the LGCs and LCDAs. Section 1 (3) of the Law 2. Tenement rates; services rendered to
makes it illegal for any LGA or LCDA to collect any 3. Licensing fee for sale of liquor; LGA to individual or
levies or taxes aside from those listed in the 4. Slaughter slab license fee in abattoirs under organisations.
Schedule to the Law. This is however subject to Local Government Control;
the provision of Section 13 of the Law which 5. Street naming registration fees;
provides that: 6. Marriage, Birth and death registration fees;
7. Motor park levy (including Motorcycles and
“Nothing in this Law shall be construed as prohibiting a Tri-cycles);
Local Government Authority from enforcing penalties 8. Parking fee on Local Government Streets or
stipulated for breach of its bye-laws or charging fees as roads as may be approved by the State
may be approved by the State Joint Revenue Government;
Committee for the use of Local Government properties, 9. Domestic animal license fee (excluding
public utilities established and maintained by the Local poultry farmers);
Government, or services rendered by the Local 10. License fees for bicycles, trucks, canoes,
Government, or its officials to particular individual and
wheelbarrows and carts (other than
organizations”
mechanically propelled trucks);
11. Radio and Television license fee (excluding
The stipulation provided by Section 13 is in
radio and television in motor vehicles;
respect of penalties for breach of any Bye-law or
12. Transmitters and other communication
charging fees for use of LGA properties and public
equipment);
utilities or for services rendered to LGA to
individual or organisations.

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 13. Public sewage and refuse disposal fees; The Lagos State Government subsequently issued a
14. Cemetery and burial ground permit fees; public notice which itemizes the amount payable on
15. Permit fee for private entertainment and each of the taxes and levies as reproduced in the
merriment in public places (excluding roads below table:
Items 1- 15 is in line with
and streets); and provisions of Part III of
16. Wharf landing fees. the Taxes and Levies
(Approved List for
Items 1- 15 is in line with provisions of Part III of the Taxes and Levies (Approved List for Collection) Act, Cap Collection) Act, Cap T2,
T2, Laws of the Federation of Nigeria, 2004 (the Act) while the inclusion of Wharf landing fees as one of the Laws of the Federation of
levies and taxes to be collected by the LGA and LCDA in the schedule conflicts with the provisions of the Act
Nigeria, 2004 (the Act)
hence, it is null and void to the extent of its inconsistency. while the inclusion of
Wharf landing fees as
one of the levies and
APPROVED RATES CHARGEABLE IN LOCAL GOVERNMENTS IN LAGOS STATE
taxes to be collected by
the LGA and LCDA in the
S/No REVENUE HEADS A+ A B C
schedule conflicts with
N N N N the provisions of the Act
01 Shop Rate (Per Annum) hence, it is null and void
a. Large 7,500 7, 500 5,000.00 2,500
to the extent of its
b. Medium 5,000 5,000 3,000 1,500
c. Small 2,500 2,500 1,500 500
inconsistency.
d. Distribution outlet/Filling Stations 200,000 50,000 25,000 10,000

02 Kiosk Rates (Per Day) 50 50 30 20

03 Approved Open Market Levy (Daily) 50 50 30 20

04 Licensing Fee For Sale Of Liquor

a. Big Hotel 500,000 150,000 100,000 50,000
b. Hotel/Clubs 200,000 40,000 25,000 15,000
c. Bar Parlor 20,000 10,000 7,500 2,500
d. Licensor Stall 1,500 1,500 1,000 500

05 Slaughter /Slab License

a. Cow 1,000 1,000 1,000 1,000
b. Others 200 200 200 200
06 Marriage Registration Fee 10,000 7,500 500 2,500
07 Street naming Registration Fee
(Subject to contract)
08 Motor Park Levy Park License (Annual)
Luxury 100,000 100,000 100,000 100,000
Others Buses 70,000 70,000 50,000 30,000
Taxis 50,000 50,000 30,000 20,000
Okada Tricycles 10,000 10,000 7,500 5,000
Long Vehicle Park 300,000 300,000 300,000 300,000

Daily Market
Trailer 900 500 500 500
Luxury Buses 200 200 200 200
Buses and Trucks 150 150 120 70
Cars 200 200 100 50

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09 Parking Fee: On Street Parking on approved or
Designated area (Daily) 100 100 60 20

10 Domestic & Animal Fee 1,000 100 500 200

11 License Fee
a. Bicycle 500 (P/A) 500(P/A) 500 500
b. Passenger Canoes (Daily) 50 (P/A) (P/A)
c. Wheelbarrow s (Daily) 50 50 50 50
d. Carts 50 50 50 20
50 20

12. Radio & TV License

a. Companies
i. Large 200,000 20,000 15,000 15,000
ii. Small 50,000 10,000 7,500 5,000

b. Residential
i. Duplex 1,000 1,500 1,000 1,000
ii. Flat 500 500 300 200
iii. Rooms 200 200 150 100

13. a. Public Convenience (Operations)

b. Sewage
Subject to Contract
14. Burial Permit (Excluding Other Charges) 5,000 15,000 10,000 5,000
15. Entertainment & Merriment Permit Fee (per 20,000 10,000 5,000 3,000
Event)
16. Regulated Food Premises Fee
a. Large 250,000 150,000 100,000 100,000
b. Medium 150,000 100,000 80,000 50,000
c. Small 10,000 10,000 5,000 3,000

17. Okada Toll (Dally) 50 50 30 20

Bicycles 100 100 75 50

Note: Category A+ refers to Highly Urbanized Communities

Category A refers to Urban Communities
Category B refers to Semi-Urban Communities
Category C refers to Rural Communities

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PROCEDURE FOR COLLECTION:
The relevant authority is required to issue
Demand Notice in respect of taxes and levies
which an individual or corporate body (Tax Payer)
is liable to pay. Where a Tax Payer is liable to pay
more than one taxes or levies, a single Demand
Notice may be issued and serve in respect of the
taxes and levies required to be paid.
CIRCULATION OF INFORMATION:
Each Local Government Revenue Committee shall
ensure that a chart showing the approved list of
taxes and levies, the applicable rates and the
expected time of payment is pasted at a
conspicuous place in all revenue offices of the
LGA/LCDA.
ACCREDITED AGENTS:
The Law formally recognizes the appointment of
revenue agents, the appointment which may be
made by the authority upon the recommendation
of the Local Government Revenue Committee
who is expected to state the terms and
conditions for the engagement and
disengagement of the revenue agent.
To qualify as a revenue agent an individual shall
be a chartered tax practitioner or have as the
head of its tax units a chartered tax practitioner
and also having regard to professionalism,
diligence, experience and integrity. All appointed
revenue agents and LGA officials who interact
with the general public for revenue
administration is expected to wear identification
badges with clear inscription of their names and
their official capacity.
Thus, the Law renders all other persons or
agencies of government who purports to act as
agent or collect levies on behalf of the LGA/LCDA
illegal.
OFFENCES:
Section 11 makes it an offence for any person to
collect or attempt to collect any levy or tax that is
not listed in the schedule to the Law. It also
makes it an offence to mount road block or
causes a road or street to be blocked for the
purposes of collecting any levy.
The penalty for this offence shall be a fine of
N500,000.00 (five hundred thousand Naira only)
or 3 years’ imprisonment or both upon
conviction.
It further makes it an offence for anyone to demand
an amount in excess of the authorized assessment
of the levy, anyone who fails to remit revenue
collected as at when due, renders false returns,
defrauds any person, embezzles any money or
otherwise uses his position to deal wrongfully with
the Local Government or any member of the public.
Anyone who is found guilty shall be liable upon It also makes it an
conviction to a fine equivalent to 500 percent of the offence to mount road
sum in question and imprisonment for a term of 3 block or causes a road or
years. street to be blocked for
the purposes of collecting
The Law protects the officials or authorized agents
any levy.
of the LGA by providing a stern punishment for any
person who while armed with any offensive
weapon, causes injury to any officer or authorized
agent of the LGA in performance of their duty shall
be liable to imprisonment for a term of 5 years. It
should be noted that there is no option of fine in
the punishment recommended.
LIABILITY OF DEFAULTERS:
In addition to penalty or punishment stipulated in
any other law where taxpayer defaults in the
payment of levy or tax due to a LGA/LCDA the
taxpayer shall be liable to pay a sum equal to two
(2) times the amount for which he is in default.
It also stipulated that where an offence has been
committed regarding any stipulation of the Law by
an incorporated or unincorporated organization,
every director, manager, or any other employee of
the organization who is responsible for the default
shall be liable to a fine of Fifty Thousand Naira
(N50,000.00) or six months imprisonment or both.
The imposition of penalties of 500 percent of the
sum payable and imprisonment for a term of 3
years for compromises on the assessment or
collection of any levy is unrealistic and punitive
which would result into loss of revenue and aid
corruption as majority of offender would rather opt
to pay bribe of far lower amount rather than all
these frivolous penalties.
CONCLUSION:
The provision of the Law is a development over
arbitrary amounts currently imposed. However, it
still materially retains multiplicity of taxes which is
detrimental to good business environment. It
theoretically stops the use of touts or unqualified
persons for professionals which invariably will
impact positively on the general administration of
revenue collection in the state. However, this need
stop be well monitored and enforced.
The public notice stipulates the approved
chargeable rates for the levies and taxes and this
have forestalled issuance of indiscriminate
assessment or Demand Notices on taxpayers.
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A Taxpayer can now have a fair idea and Any amendment to the Schedule of the Law may be
expectation of taxes he is expected to pay. made by the order of the Commissioner for Local
However, the extremely higher penal provisions will Government and Chieftaincy Affairs, upon the
encourage corruption and bribing of revenue recommendation of the Joint Revenue Committee
agents and LGA/LCDA officials. and such amendment shall be gazette. Subjecting
law making or amendment thereof to an executive
The inclusion of Tenement rate under the scope of arm of the government violates the principles of
levies to be collected conflicts with the provision of separation of power. It is hoped that the law will be
the Land Use Charge Law, 2001 which is intended to amended to ensure that only the House of
be the only property charge or levies on real Assembly is able to amend the law
properties and subsumed all other State and Local
Governments taxes on real property including taxes
like tenement rates, ground rents and
neighborhood improvement charges. This
inconsistency needs to be clarified one way or the
other to avoid multiplicity of the collection of the
same tax and undue harassment of taxpayers.

As laudable as the provisions of the Law is, it has

not addressed the issue of multiplicity of revenue in
the State an example is item 4, Licensing fee for
Sale of Liquor in the above table, this is multiple
taxation in view of the recent Hotel Occupancy and
Restaurant Consumption Law, 2009 which imposes
5% of the total bill issued to the customer excluding
Value Added Tax (VAT) and Service Charge on the
consumer (taxpayer). This cost will be transferred
to the consumer who will also be required to pay
VAT.

The cost of collection and compliance considering

that assessment has to be raised, payment
evidenced, record of it kept etc. and the use of
collection agent constitutes a burden more
especially because electronic means for collection,
remittance and record keeping which could
minimize costs has not been provided for in the
Law.

For further enquiries

please contact:

Azeez Alatoye Omobola Adepegba

08099934520 08099934546
azeez.alatoye@ascensioncsng.com bola.adepegba@ascensioncsng.com

Abbas Iromini Sola Dada

08172074294 08099934529
abbas.iromini@ascensioncsng.com sola.dada@ascensioncsng,com

Ascension Consulting Services

178B, Prince Ade Odedina Str, Off Sinari Daranijo Str, Victoria Island, Lagos, Nigeria.
Tel: +234 1 761 4701 Mobile: +234 805 401 2394
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