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  1. (1) Urban Development Tax.

(2) Person liable to pay.

  1. Property Assessment.
  2. Payment of charge.
  3. Exemption from Property Charge.
  4. Loss of Exemption.
  5. Demand Notice.
  6. Tax Collection Fund.
  7. Recovery of tax owed.
  8. Non-compliance with the Law, obstruction of officials and Damage to Property identification


  1. Penalty for inciting a person to refuse to pay tax.
  2. Penalties.
  3. Record of tenants.
  4. Registration of business.
  5. Chief Magistrate’s Court.
  6. Appeal.
  7. Regulations.
  8. Applicable Urban Towns.
  9. Classifications.
  10. Effective date.
  11. Interpretation.
  12. Short title.




A Law to make provision for the imposition and collection of an Urban Development Tax and other matters connected therewith.

(13th May, 2004)


  1. Urban Development Tax

(1)      Subject to the provisions of this Law, there is hereby imposed, a tax to be referred to as Urban Development Tax which shall be payable on all real property situate in the towns of the State specified in Schedule 1 hereto.

Person liable to pay

(2)      The owner of the property is liable to pay tax in respect of any taxable property.

  1. Property Assessment

(1)      The Commissioner shall undertake or cause to be undertaken an assessment of taxable property in such areas of the State as he may designate.

(2)      For the purpose of subsection (1), the Commissioner may appoint such property identification officers, qualified assessors and other persons as he considers necessary.

(3)      For the purpose of carrying out the identification or assessment of a property, the identification officers or assessors or their authorised assistants may, on any day between the hours of 7.00 a.m. and 5.00 p.m.—

(a)      enter, inspect, survey and assess the property;

(b)      request documents or other information to be produced to a duly designated person or assessor;

(c)      take photographs; and

(d)      make copies of documents necessary for the inspection.

  1. Payment of charge

A person liable to pay tax shall pay at any of the designated banks listed in the Tax Demand Notice.

  1. Exemption from Property Charge

(1)      The following property shall be exempt from payment of tax—

(a)      a property owned and occupied by a religious body and used exclusively for public worship or religious education;

(b)      cemeteries and burial grounds;

(c)      a recognised and registered institution or educational institute certified by the Commissioner to be non-profit making;

(d)      property used as public library;

(e)      any property specifically exempted by the Governor by notice published in the Government Official Gazette;

(f)      all palaces of recognised Traditional Rulers in the State;

(g)      any property used in the provision of social welfare services by Non-Governmental Organisations (NGO’s).

(2)      The Commissioner for Finance may, by notice published in the Government Official Gazette grant partial relief for a property that is—

(a)      occupied by a non-profit making organisation and used solely for community games, sports, athletics or recreation for the benefit of the general public;

(b)      used for a charitable or benevolent purpose for the benefit of the general public and owned by the State Government, Local Government, Federal Government or a non-profit making organisation.

  1. Loss of exemption

(1)      An exempt property or part of an exempt property shall become liable to tax if—

(a)      the use of the property changes to one that does not qualify for the exemption; or

(b)      the occupier of the property changes to one that does not qualify for the exemption.

(2)      If the tax status of a property changes, a tax imposed in respect of that property shall be pro rated so that the tax is payable only for that part of the year in which the property or part of it is not exempt.

  1. Demand Notice

(1)      The Commissioner shall cause to be issued in each financial year a Demand Notice with respect to every taxable property that has been assessed in accordance with this Law.

(2)      The Demand Notice shall be delivered to the owner or occupier.

(3)      If there is no owner or occupier or agent available to take delivery, the Demand Notice shall be posted on the property and such posting shall be deemed sufficient delivery of the notice.

(4)      The person liable to pay the amount of tax in the Demand Notice shall within thirty (30) calendar days after the date of delivery of the Demand Notice pay that amount at one of the designated banks specified in the Demand Notice.

  1. Tax Collection Fund

(1)      The Commissioner shall establish and maintain a fund, to be known as the Tax Collection Fund, consisting of all tax payments deposited in each designated bank in accordance with this Law.

(2)      At the beginning of each month, the Board shall determine the total amount of tax payments on deposit in the designated banks for the previous month and make a report thereon to the Commissioner.

  1. Recovery of tax owed

The Commissioner may apply to a Court to—

(a)      recover sums payable under this Law;

(b)      recover any tax or penalty incurred under this Law by a deceased person at any time before his death;

(c)      attach a person’s earnings, and/or person’s goods where a Court has made a liability order against that person.

  1. Non-compliance with the Law, obstruction of officials and damage to property identification plaques

Any person who—

(a)      refuses or neglects to comply with any provision of this Law when required to do so by a duly designated person or an assessor;

(b)      prevents, hinders, or obstructs any duly designated person, officer or an assessor in the course of his lawful duty;

(c)      removes from or damages or destroys a property identification sign or Demand Notice on any property or building, commits an offence and shall be liable on summary conviction to a maximum fine of ten thousand naira only (₦10,000.00) or to a term of imprisonment for a period of three (3) months or both.

  1. Penalty for inciting a person to refuse to pay tax

Any person who—

(a)      incites another person to refuse to pay any rate under this Law on or before the day on which it is payable; or

(b)      incites or assists any person to misrepresent in any way his taxable capacity, commits an offence and shall be liable on conviction to a maximum fine of ten thousand naira only (₦10,000.00) or to an imprisonment for a period of three (3) months or both.

  1. Penalties

(1)      Where a person who has received a Demand Notice fails to pay the amount within the period specified in the Demand Notice, the tax payable shall be increased by the following percentage—

(a)      between 4 weeks and 8 weeks 25%;

(b)      between 8 weeks and 16 weeks 50%;

(c)      between 16 weeks and 20 weeks 100%;

(d)      between 20 weeks and 24 weeks 200%.

(2)      If payment is not made after 24 weeks, the property on which the tax is payable shall be liable to receivership by the State or its appointed agent until all outstanding taxes, penalties and administrative charges are paid.

(3)      The owner is however entitled at any time to apply to the Commissioner for a release of the property and other moneys accruing to him upon payment of the outstanding taxes, penalties and administrative charges:

Provided that where rights and/or liabilities have been created under the receivership directly related to generate income necessary to effect the payment of the outstanding taxes, penalties and administrative charges before repayment by the owner, the owner shall assume all such rights and/or liabilities.

(4)      Whenever property comes under receivership as provided in subsection (2), such property shall be advertised as being under receivership in at least one national newspaper and one other newspaper circulating within the State.

  1. Record of tenants

Every landlord shall keep a record of all tenants in his premises and execute a duly prepared agreement showing the agreed rent in favour of each of such tenant.

  1. Registration of business

(a)      Every business enterprise operating in the State shall register the particulars of such business with the Board.

(b)      The particulars to be registered shall include principal officers of such business enterprise, its main or principal place of business, its year of commencement of business and general nature of such business.

  1. Chief Magistrate’s Court

The power to try any criminal or civil matters from the operation of this Law is hereby conferred on a Chief Magistrate’s Court notwithstanding the original jurisdiction of such Chief Magistrate’s Court.

  1. Appeal

An appeal shall lie to the High Court against any conviction or judgment imposed in respect of any such criminal or civil matter under this Law.

  1. Regulations

The Board may with the approval of the Commissioner make regulations that appears to it to be necessary for the purpose of giving effect to the provisions of this Law.

  1. Applicable Urban Towns

This Law shall apply only in the towns listed in Schedule 1 of this Law or in such towns as may be designated as urban towns by the Commissioner with the approval of the Governor.

  1. Classifications

Tax shall be levied in accordance with the classifications in Schedules 2 and 3 of this Law.

  1. Effective date

The Governor shall by Order stipulate the effective date of this Law.

  1. Interpretation

In this Law unless, the context otherwise requires—

“Board” means Board of Internal Revenue of the State;

“business enterprise” means any registered or unregistered venture engaged in any form of business within the State;

“Commissioner” means the Commissioner with responsibility for Finance;

“designated bank” means a company carrying out banking activities as provided for under the Law duly authorised to collect on behalf of the Government any tax payable under this Law;

“Demand Notice” means Urban Development Tax Demand Notice;

“landlord” includes a sub-landlord, caretaker, estate agent or any other person appointed to manage property;

“Government” means Government of the State;

“Governor” means Governor of the State;

“owner” in relation to any property shall include the person for the time being receiving the rent on the property in connection with which the word is used, whether on his own account or as agent or trustee for any other person who would receive the sum if such property were let to a tenant;

“premises” includes buildings used as residential and business purposes but does not include buildings used for religious purposes;

“tax” means Urban Development Tax imposed under this Law on real property situate in some Urban Towns of the State; and

“State” means Cross River State of Nigeria.

  1. Short title

This Law may be cited as the Urban Development Tax Law.


[Section 17.]

Urban Towns

  2. IKOM
  3. OGOJA
  4. OBUDU
  5. UGEP


[Section 18.]

Urban Development Tax Classification


Urban Development Band Private Tax
BAND A ₦50,000.00
BAND B ₦30,000.00
BAND C ₦20,000.00
BAND D ₦10,000.00
BAND E ₦5,000.00


Urban Development

Business Enterprise Tax

BAND A ₦500,000.00
BAND B ₦300,000.00
BAND C ₦200,000.00
BAND D ₦100,000.00
BAND E ₦50,000.00


SCHEDULE 2—(continued)

Urban Development

Business Enterprise



BAND F ₦30,000.00
BAND G ₦20,000.00
BAND H ₦10,000.00
BAND I ₦5,000.00
AVERAGE BAND TAX ₦135,000.00


[Section 18.]

Owner Occupier Tax would be banded as shown below

Owner Occupier
Amount of Levy
BAND A 300,000.00
BAND B 250,000.00
BAND C 200,000.00
BAND D 150,000.00
BAND E 100,000.00
BAND F 50,000.00
BAND G 40,000.00
BAND H 30,000.00
BAND I 20,000.00
BAND J 10,000.00
BAND K 5,000.00
BAND M 4,000.00
BAND N 3,000.00
BAND O 2,000.00
BAND P 1,000.00





No Subsidiary Legislation


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