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Challenges Association With Property Rating In Nigeria
[A Case Study of Abeokuta North Local Government Area]
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5. Annual Value: This implies “the rent at which any tenement or hereditament might reasonably be expected to let in the open market irrespective of the letting arrangement of the landlord and tenantâ€.
6. Rebus Sic Stantibus: It is most basic principle in rating it explained that all hereditament must be valued as they exist as at the time when the rate is being made (i.e. the property to value must be assed in the condition, state and circumstance existing at the time of assessment.
7. Hypothetical Tenancy: This refers to all potential occupiers and actual occupiers as possible yearly tenants thus; the facts that a properly owner occupier is irrelevant.
8. Gross Value: It is defined in section 19(6) of General Act of 1967, as “the rent at which a hereditament might reasonable be expected to led from year to year if the tenant undertook to pay all usual tenant rates and taxes and landlord undertook to bear the cost of repairs and insurance and other expense if any necessary to maintain the hereditament in a state to command the rentâ€.
Since then, all estate government have based their Rating Edict or Laws on it with very little modification. It is important to know that the major principle of the rating system in Nigeria is to defray the Local Government Expenses. For example, that of Ogun State was called Tenement Rate Edicit of 1995, where property types was zoned and appropriate unit was adopted. Thus the x – ray of the system in Nigeria was that of Tenement Rating, where value of the property for rating purpose to ascertain by a qualified Estate Surveyor and Values and a percentage of the capital value which constitute the retable value of the property is multiplied by a rate nairage to be adopted by the Rating Authority.
Property Rating is a viable or stable source of revenue generation, through 70 – 80% of the total revenue to the Local Government in Nigeria is from the federal statutory allocation. This Rating is a way of broadening the financial base of Local Government to provide necessary facilities for its subject.
Other sources through which the Local Government can raise funds are issuance of death and birth certificate, approval of plans, revenue from Motor Park and market, insurance of licence etc.
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