• Thursday, March 28, 2024
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Updated: Relief as Lagos waives N5.7bn 3-years’ land use charge penalty

Land Use Charge

Agitated property owners in Lagos can look to relief as the state government has waived N5.75 billion penalties from Land Use Charge (LUC) default accumulated in 2017, 2018 and 2019.

The state has also, in its 2020 Land Use Charge Law (as amended), adjusted the annual charge rates for lands in Nigeria’s business hub to accommodate a 48 percent reduction.

The state commissioner for finance, Rabiu Olowo, who announced these developments at a press conference on Wednesday said that the new reform in LUC by the Governor Babajide Sanwo-Olu-led administration has been necessary by agitations following the hiking of the rate in 2018 by the previous administration in the state.

“We considered the Land Use Charge reform necessary to accommodate the agitations of Lagosians and reduce the financial pressure on citizens as it relates to Land Use,” Olowo said.

In 2018, under the Akinwunmi Ambode-led administration, the Land Use Charge rate, as well as the method of property valuation were increased. The twin-shock in the period led to a sporadic increase in Land Use Charge payable by property owners, triggering wild agitations and protests across the state.

“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,” Olowo said.

According to the commissioner, 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.

Some of the new provisions in the new 2020 LUC Law include the re-introduction of the 15 percent early payment discount with an additional Covid-19 incentive of 10 percent which will be granted on the total amount payable. “This makes the total discount for early payment 25 percent if payment is made before the due date.”

The annual charge rate for agricultural land was also reduced from 0.076 percent to 0.01 percent. This is an 87 percent reduction from the old rate.

Also, the penalty for obstruction of officials and damage to property identification plaque has been reduced from N250,000 to N100,000 while the penalty for inciting a person to refuse to pay LUC has been reduced from N250,000 to N100,000.

According to the 2020 LUC Law, 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 60 years and has ceased to be actively engaged in any activity or business for remuneration.”

Among other adjustments, the new law introduced a 10 percent and 20 percent special relief for vacant properties and open empty land, respectively.

“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 percent early payment discount,” Olowo said, adding that the LUC payment can now be made online and in designated banks.