Lagos State Govt Announces Reduction in Obnoxious Land Use Charge

Following days of stiff opposition from resident and rights groups, the Lagos State Government yesterday, Thursday, March 15, announced a reduction in the rate of payment by property owners in the state under the controversial and highly obnoxious Lagos State Land Use Charge 2018.

The state government also claimed it was waiving the penalty imposed for late payment of the obnoxious charges.

The Lagos State Commissioner for Finance, Mr. Akinyemi Ashade, in a press conference explained that the government decided to affect a reduction in the rate following deliberations with stakeholders on the matter at a council meeting on Wednesday, chaired by Governor Akinwunmi Ambode.

In Mr Ashade’s words, –

“The rates payable on commercial properties have been reduced by 50 per cent. The government has also reduced the charges for owner-occupier with third party by 25 per cent, while tax credit has been given for LUC charges already paid in addition to introduction of installment payment system.”

A breakdown by Commissioner Ashade indicated that for commercial property owners, a property valued at N20m for instance, which was earlier billed N91,200, would pay N45,600 yearly as a result of the 50 per cent discount, while property occupied by owner, third party and property used for industrial and manufacturing purposes will now pay N23,040 yearly on a property valued at N20m as against the earlier N30,720 based on the 25 per cent discount.

For owner-occupied property valued at N20m, only N7,752 will now be paid yearly as against N9,120 earlier demanded based on 15 per cent discount.

He explained further thus –

“Other rates and reliefs, apart from the ones stated above, will remain unchanged. These include 40 per cent general relief, 10 per cent for 70 years and above, 10 per cent for properties owned by persons living with disabilities and 10 per cent for properties that are 25 years old. Owners of properties across all categories will now be allowed to make payments by installments.”

The Lagos State Attorney General and Commissioner for Justice, Mr. Adeniji Kazeem, said under the amended law, there was provision for establishment of five tribunals to be located in Ikeja, Epe, Badagry, Ikorodu, and Lagos Island.

out of which one had become operational in Ikeja.

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