Lagos State government backs down and slashes land use charge by 50% after bitter protests

LAGOS State government has succumbed to pressure and reduced the Land Use Charge (Luc) on properties by as much as 50% after local citizens objected to a recent hike introduced by Governor Akinwunmi Ambode.

After the sustained campaigns against the state’s new LUC by different interest groups, the government eventually announced a review of the charges payable by all property owners across the state. Specifically, the state government reduced the commercial charge by 50% on properties occupied by owners and third parties in the same premises used for manufacturing purposes.

It also cut the charge on properties used for industrial and manufacturing purposes by 25% and that on owner-occupier properties by 15%. In addition, the state government equally introduced an instalmental payment plan for property owners across all categories and completely waived penalties for late payments of the Luc, thereby providing additional relief to property owners.

Finance commissioner Akinyemi Ashade, reeled out the concessions on the Land Use Charge Law yesterday, saying the exercise was received with mixed feelings by various interest groups who expressed serious concerns. Mr  Ashade noted that the state government reviewed the Luc payable by all property owners across the state in its desire to build world-class infrastructure and improve the well-being of its citizens.

He added that the state government made the concession in line with Governor Ambode’s tradition of inclusive governance and civic engagement, noting that the government was committed to the welfare of its citizens and understands the importance of continuous engagement with the populace. According to Mr Ashade, the various interactions formed the subject of extensive deliberations at the meeting of the Lagos State Executive Council on March 14.

Mr Ashade said: “We undertook extensive dialogue with various stakeholders on the Land Use Charge revised law and its implementation. Consequently, we received a wide range of responses from our dialogue with various stakeholders on the amended Land Use Charge Law, 2018.”

He added that commercial property owners, who were undoubtedly the stakeholders most impacted by this amended law will be granted a 50% discount, explaining that a commercial property valued at say N20m, which was earlier billed N91,200, would now pay N45,600 per annum. Mr Ashade also explained that properties occupied by the owner and third parties in the same premises but used for industrial and manufacturing purposes will now enjoy a 25% discount.