Lagos slashes land use charges, abolishes Ambode land reforms
Lagos State has effected a 48 percent reduction in its Land Use Charge (LUC), bringing it back to the pre-2018 charges, according to the state commissioner for finance Rabiu Olowo.
Olowo also said the state has also waived penalties of LUC for Year 2017, 2018 and 2019, which effectively cost the state a total of N5.8 billion in potential revenue.
He said that the Owner-Occupied Residential Property charged at 0.076 percent, was now 0.0394 percent, while Industrial Premises of Manufacturing Concerns, which was 0.256 percent, would now be charged at 0.132 percent.
The commissioner said that Residential Property/Private School (Owner & 3rd Party) charged at 0.256 percent had been reduced to 0.132 percent.
He said that the Residential Property (Without Owner in residence), which was at 0.76 percent, would be charged at 0.394 percent.
Olowo said that Commercial property (Used by the occupier for Business Purposes) charged at 0.76 percent was now charged at 0.394 percent, while Vacant Properties and open empty Land which was at 0.076 per cent, would now be charged at 0.0394 percent.
He said that the Ministry of Finance had considered some reforms, one of which was the Land Use Charge Reform.
According to him, the state government considers the LUC reform very necessary to accommodate the agitations of Lagos people and reduce the financial pressure on the citizens as it relates to Land Use.
”As you are aware in 2018, there was an increase in Land Use Charge rate, as well as the method of valuation of properties, this twin shock had a sporadic increase in Land Use Charge payable by property owners.
”In view of the aforementioned, the current administration decided to review the Land Use Charge law by reversing the rate of Land Use Charge to pre-2018, while upholding the 2018 method of valuation.
”The reform also considered multiple Land Use Charge payment channels and efficient customer service management by setting up a call centre (0700 LAGOS LUC) in other to ensure prompt issue resolution,” he said.
Olowo said that in the new 2020 Land Use Charge Law, a property owned and occupied by a pensioner was exempted from paying LUC.
He also said that the percentage increase in penalties for defaults in paying LUC had been reduced.
The commissioner said that property owner defaulting in payment of LUC for 45 to 75 days had been reviewed to pay a penalty of 10 percent from the former penalty of 25 percent.
Penalty for defaulted of within 75 to 105 days to pay 20 percent, instead of 50 percent, while between 105 and 135 days had been reviewed from 100 percent to 50 percent.
”Still on reductions, another major sector that had its charge reduced is Agricultural sector, which annual charge rate for Agricultural land was reduced from 0.076 percent to 0.01 percent. This is an 87 percent reduction from the old rate.