Mr Babajide Sanwo-Olu, Lagos State Governor, has approved the reversal of Land Use Charge.
Akinwunmi Ambode the former Governor of lagos state, in 2018 had reduced all levies for its new LUC that had attracted public outcry by 50, 25, and 15 per cent. The state government had increased the charges payable by 400 per cent as enabled by the Land Use Charge Law of 2018. Stakeholders had condemned the increment of the LUC, insisting that it was capable of affecting business and the general financial well being of Lagos residents.
As at January 29, 2018, the Lagos State House of Assembly introduce a Law to Provide For The Consolidation Of Properties And Land-Based Charges And Make necessary requirements For The Levying And Collection Of Land Use Charge In the State; otherwise referred to as the Land Use Charge Law of Lagos State, 2018, the “LUC Law.”
50 per cent discount, were granted to Commercial property owners while property occupied by the owner and third party and property used for industrial and manufacturing purposes was granted 25 per cent discount while owner-occupied properties granted 15 per cent discount.
The ones stated above remained unchanged and being carried out as mandated by the Law. Other rates and reliefs, includes 40 per cent general relief, 10 per cent for 70 years and above, 10 per cent for properties owned by persons living with disability and 10 per cent for properties that are 25 years old.’’
Similar to the 2001 law, the LUC Law provides for a unified ‘Land Use Charge’ which consolidates all property and land-based rates and charges payable under the Land Rates Law, Neighbourhood Improvement Charge, and all Tenement Rates. The LUC Law calculates Land Use Charge by multiplying the market value of the property (i.e. the sum of land value and building development value) by the Annual Charge Rate.