In response to the continuous pressure on Lagos state government from Lagosians regarding the exorbitant rates for land use charge, Lagos Government has reviewed and made 9 changes to the Land Use Charge (LUC) Law by reversing the rates to pre-2018, thereby undertaking reforms to reduce financial pressure on citizens and accommodating the agitations of Lagosians in respect of the exorbitant rates.

The government also took a step further to waive penalties for 2017, 2018, and 2019 which could lead to a loss of over NGN5.7 billion in the state’s revenue. The LUC reform is another way LASG wants to lower the financial pressure on Lagosians in response to the pandemic.

Here are the Nine (9) changes in the Land Use Charge Law 2020

  1. Scope of coverage: Profit-oriented libraries, cemeteries, and burial grounds are no longer exempt from Land Use Charge.
  2. Persons exempt: Property owned and occupied by a pensioner is exempt from paying LUC. The term Pensioner now includes “all retirees from private and public institutions in the state or any person that has attained the age of sixty (60) years and has ceased to be actively engaged in any activity or business for remuneration”.
  3. Additional incentives: Introduction of COVID-19incentive of 10% as well as a discount of 15% for early payment before the due date. The review brings the total discount for prompt payment to 25%. Property owners in the Lagos State can make good use of the opportunity to pay their LUC bills that will soon be distributed. Also, owners of vacant properties and open empty land have relief of 10% and 20%, respectively.
  4. Lower rate: A forty-eight percent (48%) decrease in the annual charge except for agricultural land with a reduction of 87%.

 

New annual rates for land use charge

Classification Old (%) New (%) Change(%)
Owner-Occupied
Residential Property
0.076 0.0394 -48.2
Industrial Premises of
Manufacturing Concerns
0.256 0.132 -48.4
Residential Property /
Private School
(Owner & 3rd Party)
0.256 0.132 -48.4
Residential Property
(Without Owner in residence)
0.76 0.394 -48.2
Commercial property
(Used by the occupier for
Business Purposes)
0.76 0.394 -48.2
Vacant Properties and
open empty Land
0.076 0.0394 -48.2
Agricultural Land 0.076 0.01 -86.8

 

 

Source: Lagos State Government.

  1. Lesser fine: Reduction in the penalty for late payment as follows:

    45-75 days from 25% to 10%;

    75-105 days from 50% to 20%; and

    105-135 days from 100% to 50%.

6. Penalty: A sixty percent reduction in the fee for inciting a person to refuse to pay LUC, obstruction of officials, and damage to property identification cards. The new charge is NGN100,000 (Old: NGN250,000).

7. Right of enforcement: The number of default notices is two (Old: Three).

8.  Right to select an agent: The Commissioner can appoint any person, including an occupier of a chargeable property, as an agent of the owner to collect Land Use Charge.

9. Additional payment channels: Payments can be made online via https://lagos.ebs-rcm.com and through the USSD Code of the designated banks. For complaints about bills, send e-mail to luc@lagosstate.gov.ngcitizensgate@lagosstate.gov.ng, or call 0700LAGOSLUC, 08058584486 and 09086786001. Residents can address LUC disputes to the Head Office of Lagos State Appeal Tribunal at Plot 3, Otunba Jobi Fele Way, Alausa, Ikeja. 

For more real estate related news in Nigeria, subscribe to our mailing list.

 

Related Articles

Leave a Reply

Your email address will not be published.