Magnificent Lawyer

 Tenant’s Perspective on Fairness and Responsibility

In recent years, tenement rates have become a contentious issue, igniting debate among landlords, tenants, and local government authorities. The crux of the discussion centers on who should be responsible for paying these rates—landlords who own the properties or tenants who occupy them. Although the legal framework provides some guidance, the practical implications often result in confusion and, in many cases, an unfair burden on tenants.

What Are Tenement Rates?

Tenement rates are taxes levied by local government authorities on developed and occupied properties within their jurisdiction. The revenue generated from these rates is intended to support infrastructural development and the provision of social amenities within communities. The amount payable is typically assessed annually based on the property's value, with many local governments in Nigeria applying a rate of 4 kobo for every ₦100 of the property's annual value.

Nigerian law clearly outlines the legal responsibility for paying tenement rates. According to the Constitution of the Federal Republic of Nigeria, the authority to levy tenement rates lies with local government authorities, as prescribed by state legislation. However, the situation in the Federal Capital Territory (FCT) is further complicated by conflicting judicial interpretations.

In the 2018 case of Planned Shelter Limited vs. Abuja Municipal Area Council (AMAC) & 5 Others, the High Court of the FCT ruled that the collection of tenement rates by Area Councils in the FCT was illegal, as the National Assembly had not enacted a law prescribing the rates. This decision effectively halted the collection of tenement rates in the FCT until such a law was passed. However, a prior ruling by the Court of Appeal in the 2014 case of Afdin Venture Limited vs. Chairman AMAC upheld the constitutionality of AMAC's authority to assess and collect tenement rates, creating a legal ambiguity that remains unresolved by a superior court.

 The Burden on Tenants

The responsibility for tenement rates should rest with landlords; many have shifted this burden onto their tenants. This practice is unfair. Tenants, who are already responsible for rent, service charges, and other obligatory payments, are often pressured into paying tenement rates that should rightly be the responsibility of the property owner.

This shift in responsibility can be attributed to various factors. Some landlords may be unwilling or unable to pay the tenement rates themselves, while others, living outside the jurisdiction of the taxing authority, may find it more convenient to pass the cost onto their tenants. Caretakers, acting on behalf of landlords, are also guilty of imposing these charges on tenants, further exacerbating the issue.

Tenants’ Rights and Legal Recourse

Tenants must be aware of their rights regarding tenement rates. By law, the responsibility for paying these rates should fall squarely on the property owner. Any attempt by a landlord to shift this burden onto tenants is unethical. Tenants who find themselves in this situation have the right to pause the payment and seek legal advice if necessary.

In cases where landlords are unreachable or reside outside the jurisdiction, local government authorities may serve demand notices to tenants as occupiers of the property. However, tenants are entitled to indemnity from the landlord for any payments made under such circumstances. Tenants must document all such interactions and seek legal redress if their rights are infringed upon.

The issue of tenement rates underlines a broader problem in the landlord-tenant relationship in Nigeria. Tenants are often unfairly burdened with costs that should be borne by landlords, leading to financial strain and, in some cases, legal disputes. It is imperative for landlords to fulfill their responsibilities and for local governments to enforce these obligations fairly.

Moreover, a definitive ruling from a superior court is needed to resolve the legal ambiguities surrounding tenement rates in the FCT and other regions. Until such clarity is achieved, tenants must remain vigilant, assert their rights, and refuse to be unfairly burdened by taxes that are not their responsibility.

In an era where the cost of living continues to rise, it is only fair that landlords shoulder their rightful responsibilities, allowing tenants to live without the undue stress of additional financial burdens. Resolving this issue requires both legal clarity and a commitment to fairness from all parties involved.

Written by Daniel Okonkwo for Profile International Human Rights Advocate.