Nigeria is a Federation with Governmental authority distributed along Federal, State and Local Government levels. This distribution also applies to the taxing rights in Nigeria. Based on the exclusive legislative list in the Second Schedule of the 1999 Constitution of the Federal Republic of Nigeria, the Federal Government has exclusive legislative power to impose all taxes in Nigeria.  However, item 7 of part 2 (concurrent legislative list) of the schedule also permits that State governments have powers to impose taxes or duties on capital gains, incomes or profits or persons other than companies.

The Local Government Authorities derive their powers and rights of collection of taxes from item 9 of part 2 of the second schedule which prescribes that State Houses of Assembly may make provisions for the collection of any tax, fee or rate or for the administration of the Law providing for such collection by a Local Government council.

The taxes and Levies (Approved List for Collection) Act (the Act) specifies the taxes and levies collectible by each of the three tiers of government.

In this article, we will be focusing on taxes collected and administered by local governments.

Taxes collectible by Local Government

Based on the 2015 amendment of the Act, there are twenty-one (21) taxes collectible by the Local Government are as follows:


Tax or mandatory contribution


Shop and Kiosk rates


Tenement rates


Slaughter slab fees


Marriage, birth and death registration fees


Right of occupancy fees on lands in rural areas, excl. those collectible by FIRS&SIRS


Naming of street registration fees, excl. any street in the state capital


Motor park levies


Domestic animal license fees


Bicycle, truck, canoe, wheel barrow and cart fees


Cattle tax payable by cattle farmers only


Merriment and road closure levy


Radio and television license fees (other than radio and television transmitter)


Vehicle radio license fees


Wrong parking charges


Public convenience, sewage and refuse disposal fees


Customary burial ground permit fees


Religious places establishment permit fees


Signboard and advertisement permit fees


Wharf charge


On and off liquor license fees


Market taxes and levies excluding market where state finance is involved

Amount of taxes and levies payable

There are no uniform rates and due dates for local government taxes/levies in Nigeria.  This is largely dependent on what is set by each Local Government Authority (LGA). However, some states such as Lagos State have enacted laws to unify the administration of local taxes by LGAs within the state, stipulating the amount that should be collected for each tax type depending on the location of the community (i.e. urban, semi-urban or rural areas).

Local Governments are expected to issue demand notices to taxpayers and appoint accredited agents of collection.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte’s approximately 225,000 professionals are committed to becoming the standard of excellence.

This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this publication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.

© 2017 Akintola Williams Deloitte