chapter One


With the creation of more states in Nigeria in 1976, new urban centers emerged and their rapid growth increased the need for public utility funding. One of the most important sources of funding is property taxes. Property tax reform is one of the proposed alternatives to generate more revenue to meet the financial needs of cities in developing countries. In Nigeria, property appraisals are used at the local government level to generate income for public purposes. Fees are not levied nationwide, but are levied, subject to parliamentary approval, to specific regions deemed ripe for the fee. This consent is not given for all customs investigations. Power is universal, conferred by law without limit and forever.

The general indifference of property taxpayers and the reluctance of some valuation courts to disclose information often make property tax administration puzzling. This is due to the fact that the core of property tax (tax rate) administration is the value of each taxpayer’s property, which results in each taxpayer bearing its fair share of the total tax revenue. Property owners are entitled to know the approximate percentage of the estimated market value used for tax (assessment) assessment purposes.

If the local government have to exist and to viable as the third tier of government they must surely need some local revenue in order stand firmly property rating is the most obvious source of such revenue. Property rating not only helps in influencing development but is also the major source of local government revenue used in defraying the cost of services rendered by local government includes, inter-alia, parks, burial grounds, registration of marriage, death and birth.

It is important to note that rate is a form of tax, hence the use of property rate and property tax is interchangeable, although there is a slight difference between rate and tax, beside that rate is a form of tax, while in rating the amount of revenue required by a rating authority is first decided and then distributed among the rate payers according to a pre-fixed standard in other kind 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 seen in Enugu north it is, therefore 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 purpose of this paper is to study and identify the sources of local government finance, its problems, methods of property assessment as provided in some rating laws/Edicts, the impact of control of rent edict on property assessment, prospects of property rating and make recommendations not only on how best to expand the local government financial base with particular reference to property rating system but also on how best to implement the rating in the country. Objectives also include the following prospects:

1.2 Problem Description

Due to the Municipal Reform Law, toll collection duties were transferred to municipalities. Anambra’s former state evaluation unit was staffed by officials. The unit organized rental appraisals, prepared a list of appraisals and, in accordance with due process, sent them to appraisers for delivery of notices of demand and collection of rents.

One of the biggest rating issues for most rating agencies is that of collections. Weak or inefficient controls lead to high default rates. For example, in 1978/79, 21% of estimated rental income was taken across northern Enugu. Some rating agencies are now involved on a fee basis.

The issue of debtor prosecution is not actively pursued in most areas of local rating agencies for two reasons.

(a) Most debtors are elites who decide such cases.

(b) Because of political benefits, landlords are political power brokers who do not want to embarrass the head of their local rating agency through prosecution.

Part 13 of this decree, entitled ‘Grading’, which includes sections 103 to 146, authorizes municipal districts, or grading districts, to impose property appraisals on property owners as a source of income. increase. In Enugu State in general, and Enugu North Municipality in particular, weaknesses in the current property valuation structure quickly became apparent and, in hindsight, hindered the success of the service. Most of the real estate appraisers at local government headquarters are just technicians, and some are poorly educated. This in no small part influences the decisions of the ministry and local government appraisers regarding the types of properties to collect data for use. Like in Enugu, get yearly property values. This problem was exacerbated during the political era when the nation’s job opportunities were based on politics rather than skills.

Furthermore, most property owners in Enugu are illiterate and do not know their rights. Most of them have no idea why they need to pay property taxes. Adding to this ugly situation is the ambiguity that appraisers (appraisers) introduce when communicating appraisal values ​​to property owners. Shows only the estimated annual value without specifying the rate actually paid. When most landlords see these, they simply turn a blind eye and openly refuse to pay, mistaking annual interest for interest owed. They are made aware of this premise only through litigation, which is not in the best interest of the local government, costs, and time commitments.

Another factor is how to equate the valuation burden of local landowners with the value of services provided by government action. This issue raises the question of how to remedy the current dire situation and weakening rural development programs through judicious management of real estate appraisal income.

1.3 Purpose of the survey

The main purpose of introducing property ratings in municipalities is to increase income from sources. The income thus generated is used by the local government in which the apartment building/property is located to provide essential services that cannot easily be provided by government subsidies.

Local governments provide basic services such as water and electricity supply, tidal flat and bridge repairs, and subsidized government subsidies for salaries of non-governmental workers. They are also responsible for planning good drainage systems and local government areas.

It is true that no government could last long without the power to impose and collect taxes. (Barlowe, R.) goes on to argue that the power to tax is a single great power that underlies the entire state structure. It is as necessary to the existence and prosperity of a nation as the air it breathes is to a natural person. Tax sovereignty therefore provides the government with most of the revenue it uses to fund its many operations and functions, and also provides tools that can be used for various tax and regulatory purposes.

1.4 Research scope and limitations

This work cannot be called a comprehensive work. Property ratings are such a broad discussion that it is not possible to effectively cover all aspects of them within a timeframe and volume.

In connection with these above limitations, Enugu State North L.G.A. plays an important role in hampering research efforts. Again, the management’s notion that documents related to asset valuations were fundamentally confidential and unavailable to researchers without government permission ran into its own problems.

In addition to this, property owners were hesitant to disclose necessary information about their own part of the administration because they were unaware of the purpose of the investigation. Most of them refused to collect and fill out questionnaires or automatically avoided certain personal interview questions.

Despite all these limitations, perseverance and strong dedication enabled the researchers to break through the task at hand and provide the necessary conclusions and generalizations for the objective conclusions and generalizations of real estate appraisal management in the Enugu North Municipal Area, Enugu State. We were able to collect good data.

1.5 Definition of key terms

A) Property evaluation:
Also known as local government property value, it is paid to the local government treasury as an amount per naira of the computable value of property. It is a city tax based on the tax rate imposed according to the taxable value of the property.

B) Rate:
Payment for possession or use of something of value. In other words, an installment payment is a payment for the benefit derived or derivable from the service.

C) Rate payer:
The interest payer is the property owner who can value the property. The term may refer to a resident of a property or a representative of a property owner, especially if the property owner is an absentee landlord.

D) Evaluator:
means the evaluation area or the local public entity that has jurisdiction over it.

Real estate valuation management

Management of Property Valuations included his four main divisions of the Board of Directors involved in property valuations: Valuation, Collections, Payments and Claims Engine.

Including those currently receiving rent for the dwelling in which the term is used. This includes a person receiving amounts on his own account, whether as agent or trustee of another person, or if the residence is rented out to a tenant. Owners of cubicles direct from the State, whether under a lease, license, or otherwise.

The importance of property varies not only between individuals but also between professions. For appraisers and appraisers, and in the legal sense, property consists not of things, but of rights to things that are owned. In other words, property consists of rights exercised over land owned by the owner. These rights are

(a) Usage Rights; (b) Usage Rights;

(c) the right of claim; (d) the right of assimilation; (e) the right of inheritance.

Rate Niage:
Means the amount of the treasury calculated per naira of the estimated proportional value. The state of Enugu currently has 10,000 (10 cobos).

State here means the state of Enugu. Local government:
“City Government” as used in this work refers to the Enugu North City Government Area in Enugu State.

When it comes to grading, it is essentially the appraiser who is entrusted with assessing the value of heritage in the field of rating agencies.

means land, tenements or dwellings that are or may become available at any rate, in connection with Appraisal Listings by Appraisal Act; That is, all rental homes in the variation list.

Spot value:
This is the appraised value of the planned rental condominium. Evaluation area:
Specifies the field of activity of the rating agency. Each municipality is an evaluation district under Section 99 of the Local Government Act.



Leave a Comment