Tenement rate: Is a fee, levy, or tax charged and collected on a developed and occupied property by Local Government or Area Council authorities in Nigeria and it is a critical source of revenue for Local Governments.

The Tenement rate is a tax on the occupation of property not the ownership of property. A person may own a property and not live there, so the responsibility to pay the Tenement Rate then becomes that of the tenant. However, if the property is owner-occupied then the landlord/owner pays the Tenement Rate.

The power of the Local Government or Area Council authorities to collect Tenement Rate is derived variously from section 7(5) and 1(f) of the 4th Schedule to the Constitution of Federal Republic of Nigeria. The Taxes and Levies (Approved List of Collection) Act, Tenement Rate Laws of the various states, Bye-Laws of the various Local Government or Area Council authorities.

The Kano State and Local Government Revenue Administration (Consolidation & Codification) Law, 2021 describe Tenements Rates for both Private and Commercial Property to be charge based on the value of the property. All the commercial property to be charge at the rate of 0.25% while the private property to be charge at the rate of 0.001%.