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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.
178B, Prince Ade Odedina Str, Off Sinari Daranijo Str, Victoria Island, Lagos, Nigeria.
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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
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
178B, Prince Ade Odedina Str, Off Sinari Daranijo Str, Victoria Island, Lagos, Nigeria.
Tel: +234 1 761 4701 Mobile: +234 805 401 2394
Info@ascensioncsng.com
09 Parking Fee: On Street Parking on approved or
Designated area (Daily) 100 100 60 20
b. Residential
i. Duplex 1,000 1,500 1,000 1,000
ii. Flat 500 500 300 200
iii. Rooms 200 200 150 100
178B, Prince Ade Odedina Str, Off Sinari Daranijo Str, Victoria Island, Lagos, Nigeria.
Tel: +234 1 761 4701 Mobile: +234 805 401 2394
Info@ascensioncsng.com
PROCEDURE FOR COLLECTION: collected as at when due, renders false returns,
The relevant authority is required to issue defrauds any person, embezzles any money or
Demand Notice in respect of taxes and levies otherwise uses his position to deal wrongfully with
which an individual or corporate body (Tax Payer) the Local Government or any member of the public.
is liable to pay. Where a Tax Payer is liable to pay Anyone who is found guilty shall be liable upon It also makes it an
more than one taxes or levies, a single Demand conviction to a fine equivalent to 500 percent of the offence to mount road
Notice may be issued and serve in respect of the sum in question and imprisonment for a term of 3 block or causes a road or
taxes and levies required to be paid. years. street to be blocked for
the purposes of collecting
CIRCULATION OF INFORMATION: The Law protects the officials or authorized agents
any levy.
Each Local Government Revenue Committee shall of the LGA by providing a stern punishment for any
ensure that a chart showing the approved list of person who while armed with any offensive
taxes and levies, the applicable rates and the weapon, causes injury to any officer or authorized
expected time of payment is pasted at a agent of the LGA in performance of their duty shall
conspicuous place in all revenue offices of the be liable to imprisonment for a term of 5 years. It
LGA/LCDA. should be noted that there is no option of fine in
the punishment recommended.
ACCREDITED AGENTS:
The Law formally recognizes the appointment of LIABILITY OF DEFAULTERS:
revenue agents, the appointment which may be In addition to penalty or punishment stipulated in
made by the authority upon the recommendation any other law where taxpayer defaults in the
of the Local Government Revenue Committee payment of levy or tax due to a LGA/LCDA the
who is expected to state the terms and taxpayer shall be liable to pay a sum equal to two
conditions for the engagement and (2) times the amount for which he is in default.
disengagement of the revenue agent.
It also stipulated that where an offence has been
To qualify as a revenue agent an individual shall committed regarding any stipulation of the Law by
be a chartered tax practitioner or have as the an incorporated or unincorporated organization,
head of its tax units a chartered tax practitioner every director, manager, or any other employee of
and also having regard to professionalism, the organization who is responsible for the default
diligence, experience and integrity. All appointed shall be liable to a fine of Fifty Thousand Naira
revenue agents and LGA officials who interact (N50,000.00) or six months imprisonment or both.
with the general public for revenue
administration is expected to wear identification The imposition of penalties of 500 percent of the
badges with clear inscription of their names and sum payable and imprisonment for a term of 3
their official capacity. years for compromises on the assessment or
Thus, the Law renders all other persons or collection of any levy is unrealistic and punitive
agencies of government who purports to act as which would result into loss of revenue and aid
agent or collect levies on behalf of the LGA/LCDA corruption as majority of offender would rather opt
illegal. to pay bribe of far lower amount rather than all
these frivolous penalties.
OFFENCES:
Section 11 makes it an offence for any person to CONCLUSION:
collect or attempt to collect any levy or tax that is The provision of the Law is a development over
not listed in the schedule to the Law. It also arbitrary amounts currently imposed. However, it
makes it an offence to mount road block or still materially retains multiplicity of taxes which is
causes a road or street to be blocked for the detrimental to good business environment. It
purposes of collecting any levy. theoretically stops the use of touts or unqualified
persons for professionals which invariably will
The penalty for this offence shall be a fine of impact positively on the general administration of
N500,000.00 (five hundred thousand Naira only) revenue collection in the state. However, this need
or 3 years’ imprisonment or both upon stop be well monitored and enforced.
conviction.
The public notice stipulates the approved
It further makes it an offence for anyone to demand chargeable rates for the levies and taxes and this
an amount in excess of the authorized assessment have forestalled issuance of indiscriminate
of the levy, anyone who fails to remit revenue assessment or Demand Notices on taxpayers.
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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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.
178B, Prince Ade Odedina Str, Off Sinari Daranijo Str, Victoria Island, Lagos, Nigeria.
Tel: +234 1 761 4701 Mobile: +234 805 401 2394
Info@ascensioncsng.com