UNIFIED CHARGEABLE RATES FOR LOCAL

GOVERNMENT TAXES AND LEVIES IN LAGOS STATE

The Lagos State Government passed the

approved Levies for Local Government Council
(LGC or LGA) and Local Council Development
Areas (LCDA) into law on 12 July, 2010, the law is
to be cited as Local Government Levies
(Approved Collection List) Law, 2010 (the Law).
The Law is enacted to regulate the administration
of and unify the levies and taxes collected by
LGCs and LCDAs within Lagos State (the State).
The Law consists of 15 paragraphs and a schedule
of approved levies and taxes to be collected by
the LGCs and LCDAs. Section 1 (3) of the Law
makes it illegal for any LGA or LCDA to collect any
levies or taxes aside from those listed in the
Schedule to the Law. This is however subject to
the provision of Section 13 of the Law which
provides that:
Nothing in this Law shall be construed as prohibiting a
Local Government Authority from enforcing penalties
stipulated for breach of its bye-laws or charging fees as
may be approved by the State Joint Revenue
Committee for the use of Local Government properties,
public utilities established and maintained by the Local
Government, or services rendered by the Local
Government, or its officials to particular individual and
organizations

The stipulation provided by Section 13 is in

respect of penalties for breach of any Bye-law or
charging fees for use of LGA properties and public
utilities or for services rendered to LGA to
individual or organisations.

Below are some of the highlights of the issues

covered by the Law:
Scope and Application of the Law:
The provision of the Law, which was assented to on
12 July 2010, covers all levies and taxes to be
collected by the LGAs and LCDAs in Lagos State. The
list of approved levies and taxes to be collected by
LGA and LCDA includes:
1.
2.
3.
4.
5.
6.
7.
8.

9.
10.

11.
12.

Shops and Kiosks rates;

Tenement rates;
Licensing fee for sale of liquor;
Slaughter slab license fee in abattoirs under
Local Government Control;
Street naming registration fees;
Marriage, Birth and death registration fees;
Motor park levy (including Motorcycles and
Tri-cycles);
Parking fee on Local Government Streets or
roads as may be approved by the State
Government;
Domestic animal license fee (excluding
poultry farmers);
License fees for bicycles, trucks, canoes,
wheelbarrows and carts (other than
mechanically propelled trucks);
Radio and Television license fee (excluding
radio and television in motor vehicles;
Transmitters and other communication
equipment);

The stipulation provided

by Section 13 is in
respect of penalties for
breach of any bye-law
or charging fees for use
of LGA properties and
public utilities or for
services rendered to
LGA to individual or
organisations.

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13.
14.
15.

16.

Public sewage and refuse disposal fees;

Cemetery and burial ground permit fees;
Permit fee for private entertainment and
merriment in public places (excluding roads
and streets); and
Wharf landing fees.

The Lagos State Government subsequently issued a

public notice which itemizes the amount payable on
each of the taxes and levies as reproduced in the
below table:

Items 1- 15 is in line with provisions of Part III of the Taxes and Levies (Approved List for Collection) Act, Cap
T2, Laws of the Federation of Nigeria, 2004 (the Act) while the inclusion of Wharf landing fees as one of the
levies and taxes to be collected by the LGA and LCDA in the schedule conflicts with the provisions of the Act
hence, it is null and void to the extent of its inconsistency.

APPROVED RATES CHARGEABLE IN LOCAL GOVERNMENTS IN LAGOS STATE

S/No

REVENUE HEADS

A+

01

Shop Rate (Per Annum)

a. Large
b. Medium
c. Small
d. Distribution outlet/Filling Stations

7,500
5,000
2,500
200,000

7, 500
5,000
2,500
50,000

5,000.00
3,000
1,500
25,000

2,500
1,500
500
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
b. Hotel/Clubs
c. Bar Parlor
d. Licensor Stall

500,000
200,000
20,000
1,500

150,000
40,000
10,000
1,500

100,000
25,000
7,500
1,000

50,000
15,000
2,500
500

Slaughter /Slab License

a. Cow
b. Others

1,000
200

1,000
200

1,000
200

1,000
200

06

Marriage Registration Fee

10,000

7,500

500

2,500

07

Street naming Registration Fee

(Subject to contract)
Motor Park Levy Park License (Annual)
Luxury
Others Buses
Taxis
Okada Tricycles
Long Vehicle Park

100,000
70,000
50,000
10,000
300,000

100,000
70,000
50,000
10,000
300,000

100,000
50,000
30,000
7,500
300,000

100,000
30,000
20,000
5,000
300,000

Daily Market
Trailer
Luxury Buses
Buses and Trucks
Cars

900
200
150
200

500
200
150
200

500
200
120
100

500
200
70
50

05

08

A
N

Items 1- 15 is in line with

provisions of Part III of
the Taxes and Levies
(Approved List for
Collection) Act, Cap T2,
Laws of the Federation of
Nigeria, 2004 (the Act)
while the inclusion of
Wharf landing fees as
one of the levies and
taxes to be collected by
the LGA and LCDA in the
schedule conflicts with
the provisions of the Act
hence, it is null and void
to the extent of its
inconsistency.

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09

Parking Fee: On Street Parking on approved or

Designated area (Daily)

10
11

100

100

60

20

1,000

100

500

200

500 (P/A)
50
50

500(P/A)
50
50
50

500
(P/A)
50
50
50

500
(P/A)
50
20
20

Radio & TV License

a. Companies
i.
Large
ii.
Small

200,000
50,000

20,000
10,000

15,000
7,500

15,000
5,000

b. Residential
i. Duplex
ii. Flat
iii. Rooms

1,000
500
200

1,500
500
200

1,000
300
150

1,000
200
100

5,000
20,000

15,000
10,000

10,000
5,000

5,000
3,000

250,000
150,000
10,000

150,000
100,000
10,000

100,000
80,000
5,000

100,000
50,000
3,000

50
100

50
100

30
75

20
50

Domestic & Animal Fee

License Fee
a. Bicycle
b. Passenger Canoes (Daily)
c. Wheelbarrow s (Daily)
d. Carts

12.

13.

14.
15.
16.

17.

a. Public Convenience (Operations)

b. Sewage
Subject to Contract
Burial Permit (Excluding Other Charges)
Entertainment & Merriment Permit Fee (per
Event)
Regulated Food Premises Fee
a. Large
b. Medium
c. Small
Okada Toll (Dally)
Bicycles

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.

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
conviction to a fine equivalent to 500 percent of the
sum in question and imprisonment for a term of 3
years.

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.

The Law protects the officials or authorized agents

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.

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

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.

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

expectation of taxes he is expected to pay.
However, the extremely higher penal provisions will
encourage corruption and bribing of revenue
agents and LGA/LCDA officials.
The inclusion of Tenement rate under the scope of
levies to be collected conflicts with the provision of
the Land Use Charge Law, 2001 which is intended to
be the only property charge or levies on real
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.

Any amendment to the Schedule of the Law may be

made by the order of the Commissioner for Local
Government and Chieftaincy Affairs, upon the
recommendation of the Joint Revenue Committee
and such amendment shall be gazette. Subjecting
law making or amendment thereof to an executive
arm of the government violates the principles of
separation of power. It is hoped that the law will be
amended to ensure that only the House of
Assembly is able to amend the law

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

Abbas Iromini

Sola Dada

08099934520
azeez.alatoye@ascensioncsng.com

08172074294
abbas.iromini@ascensioncsng.com

08099934546
bola.adepegba@ascensioncsng.com

08099934529
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

Info@ascensioncsng.com