The Lagos state government has revealed that it gained N300 million in revenue from Land Use Charges in the first four months of 2024.
The announcement was made by Ope George, the Lagos state commissioner for economic planning and budget while presenting the scorecard of the Lagos State Ministry of Economic Planning and Budget at a ministerial press briefing in Ikeja, on Thursday.
According to the commissioner, the acquired revenue is an indication that the N700 million projection from Land Use Charge in the 2024 Lagos state annual budget is achievable.
In 2020, the Lagos State House of Assembly amended the state’s Land Use Charge (LUC) Law 2018,
Under the Lagos State Land Use Charge Law of 2020, owners of properties are liable to pay Land Use Charge in respect of any taxable property.
The owner, being an occupier with a lease of at least ten years or any person for the time being receiving proceeds on the property, whether on own account or as agent or trustee for any other person who would receive the sum if such property were let to a tenant.
Concerns about budget adequacy
Last year, Babajide Sanwo-Olu, governor of Lagos state proposed an N2.2 trillion budget for the 2024 fiscal year, over 69 per cent higher than N1.3 trillion, tagging it a “budget of renewal.”
The commissioner said that the budget size is still inadequate to meet the needs of the state, particularly in infrastructural development.
He said that the financial needs of government agencies exceed N4 trillion following the last consultative forum held by the Ministry of Economic Planning and Budget for the state government.
“What this implies is that Lagos can have a budget size of N4 trillion, but going by the available indices at the moment, such projection cannot be made until there are available means and revenue sources that can conveniently fund such budget size,” George said, signifying a potential budget review.
George explained that the N2.267 trillion state budget for 2024 is targeted at completing ongoing infrastructural projects in the state, including the Blue and Red Line Rail System, Stadia, Lekki-Epe Road, New Massey Children’s Hospital, and the Opebi-Mende Link Bridge.
