In Nigeria, rates (such as tenement rates and property taxes) are collected by the local government councils or department councils within the local government system. These rates are a major source of internally generated revenue for local governments and are used for community development projects like road maintenance, waste management and local infrastructure.

Other bodies like the State Ministries of Commerce or the Federal Inland Revenue Service (FIRS) are responsible for different types of taxes, such as business levies and income tax but not local rates.