Banking and Finance Project Topics

An Evaluation of Property Rating Practice in Nigeria (a Case Study of Enugu North Local Government Area)

An Evaluation of Property Rating Practice in Nigeria (a Case Study of Enugu North Local Government Area)

An Evaluation of Property Rating Practice in Nigeria (a Case Study of Enugu North Local Government Area)

Chapter One


The main objective for the introduction of property rating in the local government is to raise revenue from the source. Revenue, thus generated are utilized by the local government where the tenements/properties are located to provide essential service which the government grants cannot easily take care of.

Local government provides essential services such as the supply of water and electricity, repair of wads and bridge, supplementing of the government grant for the payment of staff salaries not employed by the government. They also, have the responsibility to provide good drainage system and the planning of their local government area.

It is a fact that no government could long exist without the power to levy and collect taxes.(Barlowe.R)goes on to contend that the power to tax is the one great power upon which the whole national fabric is based. It is necessary to the existence and prosperity of the nation as the air he breathes is to the natural man. Thus the taxing power provides government with the major portion of revenues they use to finance their many operations and function, and it also provides a tool they can use for various fiscal and regulatory purposes.




Property rating in Nigeria has its origin from the laws of united kingdom. The rating law in Britain originated with the poor relief Act of 1601, which provided for the levying of taxation on every occupier of land houses etc.

The first trace of Nigerian legislation on property rating is found in the laws of the federation of Nigeria Assessment ordinance of May 1915. In 1932, the above law was amended to allow for rating of unimproved values. The area called, the Lagos protectorate had her own law too. The Northern, Eastern and Western Regions are also on record to have equally legislated on property rating. Such other amendments include:

  • Cap 16 of the 1948  Edition of the law of Nigeria
  • Nigeria Legal Notice No 47 of 1951
  • Nigeria Legal Notice No 131 of 1954
  • Nigeria Legal Notice No 47 of 1955
  • Caps 15 and 16 Assessment Ordinance of the Laws.

Of the federation of Nigeria and Lagos, 1958. The most significant of the above enactments is the 1958 Act Today. It is regarded as the principal Act in the Federation and it provided for the rating based on ANNUAL VALUE, as the governor or the equivalent authority might direct.

In Nigeria today, state laws or edicts modeled more or less on the above. act form the basis of rating in  various states of the federation. At first there were.

  1. The assessment law of Lagos
  2. The laws of Northern Nigeria 1963
  3. The laws of Western Nigeria 1963
  4. The laws of Eastern Nigeria 1963.

In Eastern Nigeria, firstly on creation of states in 1967. The East Central State of Nigeria adopted cap II of the Laws of Eastern Nigeria for property rating as amended by:

  • The Assessment (Amendment) Edict 1972 (Edict No  8 of 1972).
  • The property rates Edict 1972 Edict 140 1972
  • The Assessment laws amendment Edict 1973 or Edict No 6 of 1973.
  • Property Rates Ordinance 1973 or order No 10 of 1973.
  • The control of Rent Edict 1973 le Edict No 4 of 1973.

After the creation of states in 1976, new edicts and laws were made by various states of the federation. The Eastern Central State was divided into Anambra and Imo State. In Anambra State. The relevant enactment is the part III of the local government. Edict 1976 le Edict No 9 of 1976 while in Imo State of Nigeria Edict No 20 of 1976. It is however important to add that all these enabling laws now have based on the federal government. Reforms of 1976 and 1979 constitution of the Federal Republic of Nigeria.




As the name implies, this refers to the total constructional plan or structure of the research framework. Essentially, the basis nature of this research work is explained here, also the manner or method of information or something, nature of data involved, mode of analysis of the data, and the design of the interview and questionnaire questions are clearly outlined.

The method of research adopted in this work is the case study research method.

The respondents were restricted to admits only but without regards to sex, religion, education or socio economic status.


Primary and secondary data were collected from the field survey conducted on various group oral interviews, questionnaires, and personal knowledge.

Primary source sought for information concerning the present status of property rating practice in Enugu North, their constraints and way forward (possible solution).

Secondary data were obtained from library source (existing literatures). This includes textbook, journals, workshop papers, thesis and allied research materials.



The Enugu Local Government Council is the parent name which was created in 1969, and includes the municipality of Enugu that enjoys both the advantages and disadvantages of a highly built – up – area.

Amongst the offshoots of the Enugu Local Government are the Enugu South, Enugu East and the case study – Enugu North Local Government Authorities which brought the old Enugu Local Government into complete dissolution. Hence, the Enugu North Local Government Area is bounded by Enugu East, Enugu South, Ngwo and Udi Local Government Areas respectively.

Going by the final report of 1991 population census of Nigeria courtesy of National Population Commission, the population of Enugu North Local Government Area was given as one hundred and forty six thousand, three hundred and thirty – nine (146, 339) peoples comprising of 75, 102 males and 71, 339 female. However the repot forth gave a projected figure of one hundred and seventy thousand, three hundred and eighty – eight (170, 388) peoples for 196.

The traditional occupation of the people of Enugu North is primarily farming and coal mining, though, they still engage in other secondary occupation such as trading and white – collar jobs.

One important feature of the Enugu North Local Government Authority, is that it lies within the core metropolis of the state and forms the sear both of the local government and the state government. The Enugu North Local Government Area was created in 1992.



The major objective of this study has been towards an improved tenement mating practice in Nigeria with particular focus on Enugu North Local Government Area.

This study was able to evaluate property rating administration in the study area and discovered the following.

  1. That before the recent call for proposals in the year 2000 from independence estate surveyors and valuers of revaluation of hereditaments for purpose of property rating and which contracted the services of EMMA EZE and Company; FRANK MALUZE AND ASSOCIATES, IFEANY EMOH AND COMPANY AND MEZUE ASSOCIATES rating has  been carried out only once in Enugu North Local Government Area.

The 1992 rating valuation was awarded with bias in return of a pledge for political reasons. Therefore it lacked good comprehensive accurate and good presentation of tenements were not covered and most of the fund were diverted to private coffers either personally or in collaboration with the local government staff. The exercises was also carried out by contracted independent Estate Surveyor and valuers.


  • UGWU C. (2000): Re appraising The Practice of Rating Valuation in Nigeria. For desired Effectiveness. Thesis submitted to the  National Council of NIESV.
  • OLUSEGUN K. (1999): Property Rating and Administration in Nigeria. Published by E.K. Oyeniyi and Co; Dugbe, Ibadan.
  • IFEDIORA G.S.A. (2001): Rating Valuation / Assessment. Paper Presented at a one day workshop of NIESV, Enugu branch, August.
  • ANUMNU E. (2001): Property Rating: A Reliable Source of Finance for Local Government, paper Present at the CPD workshop organized by NIES, Enugu branch.
  • ILOABUCHI K.E. (2001). Property Rating in Nigeria. The graduate Estate Surveyor and Valuer vol. 6, No. 1 UNEC.
  • ILOABUCHI K.E. (2001): Rating System in Nigeria Constraints and Potential. Paper Presented at the CPD workshop organized by NIESV Enugu Branch.
  • OCHUBA O.V. (2001): An Appraisal of Tenement Rating, Basis and Methods of Assessment in Enugu State of Nigeira. Paper Present at the CPD workshop organized by NIESV Enugu Branch.