Lagos Government Reviews 2018 Land Use Charge

Lagos Government Reviews 2018 Land Use Charge

The Lagos State Government on Wednesday reviewed the 2018 Land Use Charge.

The state government disclosed that the decision for the review was to reduce the financial pressure on Lagosians relating to land use.

In a statement by the Commissioner, Ministry of Finance, Dr. Rabiu Olowo, explained that “In 2018, there was an increase in Land Use Charge rate as well as the method of valuation of properties, this 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”.

Read Full Statement Below:

SPEECH DELIVERED BY THE HONOURABLE COMMISSIONER FOR FINANCE AT A PRESS BRIEFING ON THE 2020 NEW LAND USE CHARGE LAW

Gentlemen of the Press, it gives me great pleasure to once again address you since the last time we held our Ministerial Press Briefing to commemorate the first year in office of our Governor, Mr. Babajide Olusola Sanwo-Olu.

You will recall that during my presentation at the press briefing, I made mention of some reforms being considered by the Ministry of Finance, one of which is the Land Use Charge Reform.
We considered the Land Use Charge reform very necessary to accommodate the agitations of Lagosians and reduce the financial pressure on 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.
Gentlemen of the Press, permit me to also avail you with some of the new provisions in the new 2020 Land Use Charge Law, the importance of LUC, various channels available for payments, the complaint management process amongst others.

1. The definition of Pensioner has been expanded to include “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”

2. Property owned and occupied by a pensioner is exempted from paying LUC

3. Also, the percentage (%) increase in penalties for defaults in paying LUC has been reduced as follows:

Days Outstanding Before Now
45-75 days 25% 10%
75-105 days 50% 20%
105-135 days 100% 50%

1. In addition to this, there is also a 48% reduction in the Annual Charge Rates as follows:
   Definition Areas Before Now
   Owner-Occupied Residential Property 0.076% 0.0394%
   Industrial Premises of Manufacturing Concerns 0.256% 0.132%
   Residential Property/Private School (Owner & 3rd Party) 0.256% 0.132%
   Residential Property (Without Owner in residence) 0.76% 0.394%
   Commercial property (Used by the occupier for Business Purposes) 0.76% 0.394%
   Vacant Properties and open empty Land 0.076% 0.0394%

2. Still, on reductions, another major sector that had its charge reduced is the Agricultural sector, which annual charge rate for Agricultural land was reduced from 0.076% to 0.01%. This is an 87% reduction from the old rate.

3. Penalties for Land Use Charge for Year 2017,2018 and 2019 have also been waived. This translates to N5,752,168,411.03 potential revenue waived by the State.
4. In addition to the reintroduction of the 15% early payment discount, an additional COVID 19 incentive of 10% will be granted on the total amount payable. This makes the total discount for early payment 25% if payment is made before the due date
5. The penalty for obstruction of officials and damage to property identification plague has been reduced from N250,000 to N100,000
6. The penalty for inciting a person to refuse to pay LUC has been reduced from N250,000 to N100,000
7. The 2020 LUC Law introduced a 10% and 20% special relief for Vacant properties and Open empty land, respectively.
8. The right of enforcement has been reduced from notification of three (3) default notices to (2) default notices.
9. Profit oriented Cemeteries and Burial Grounds are no longer exempted from payment of Land Use Charge
10. Private Libraries are also no longer exempted from paying Land Use Charge
11. An important section which I intend to bring to light is section 14 of the Law which makes it possible for the Commissioner to appoint any person including an occupier of a chargeable property to be an agent of the owner for the purpose of collecting Land Use Charge.
12. We have completed the LUC Reform process and review of bills. Property owners should expect to receive their 2020 LUC bills shortly and we expect property owners to leverage on the 25% early payment discount.

Furthermore, The LUC payment can now be made Online via https://Lagos.ebs-rcm.com Payment can also be made using USSD Code to any of our designated banks with the appropriate code stated below:
Fidelity – 77017# or *770#
Ecobank – *326#
Unity Bank – *7799302#

MOBILE BANKING PAYMENT OPTIONS
GTB
UBA
FIDELITY
POLARIS
ZENITH
FCMB
KEYSTONE
WEMA

INTERNET BANKING PAYMENT OPTIONS
GTB
UBA
FIDELITY
POLARIS
ZENITH
FCMB
KEYSTONE

Also, the Ministry of Finance has expanded its Complaints Resolution Process and as such, Lagosians are advised to make complaints about their bills through these E-mail addresses: luc@lagosstate.gov.ng, OR citizensgate@lagosstate.gov.ng and Phone call :08058584486, 09086786001

Alternatively, Lagosians can visit any of our Walk –In contact centers in the following areas across the State:

1. ALIMOSHO (107, Agege Motor Road, Idi-oro, Bus stop, Lagos)
2. ETI-OSA (9 Ahmed Onibudu Street, Victoria Island Lagos)
3. ETI-OSA (Connect Center Building KLM 35, Lekki-Epe Exp Way, Eputu, Lagos)
4. IKEJA (Ministry of Finance Revenue Complaints & Information Unit, Block 12, Alausa Ikeja)
5. IKEJA (73, College Road, Ifako- Ijaiye, Lagos)
6. SURULERE (2 Plateau Road, Apapa, Lagos)

While we assure Lagosians that our typical response time will not exceed 24hours, we urge anyone who feels dissatisfied or whose complaint results in a dispute to please contact the Lagos State Appeal Tribunal at Plot 3 Otunba Jobi Fele way (Ampak Plaza) Alausa Central Business District
Phone call :08058584486, 09086786001
Email;lucaat@lagosstate.gov.ng

I extend my sincere appreciation to Lagosians who have been very committed to the payment of their annual Land Use Charge in spite of the challenges posed on every one of us by the covid-19 pandemic.

Let me state that we share in the pain which the pandemic has brought on every household including the government. While we hope for the return of normalcy to business activities across the State, it is important to let you know that, the payment of LUC is not intended to inflict any hardship on anyone, we believe that we are all partners in progress and together, we can achieve a Greater Lagos of our dream.

I thank you all for your attention.

Igbega Ipinle Eko, Ajumose Gbogbo Wa Ni o

Dr. Rabiu Olowo
Hon. Commissioner
Ministry of Finance