Lagos State Government has officially announced the cancellation of the 2018 Land Use Charge and reverted to pre-2018 rates.
Recall that administration of former Governor Akinwunmi Ambode had repealed the initial Land Use Charge law replacing it with an amended copy.
The state Commissioner for Finance, Dr Rabiu Olowo and his Information and Strategy counterpart, Mr Gbenga Omotoso, on Wednesday, announced this at a media briefing in Alausa, Ikeja.
The government also announced a waiver for penalties on land use charge for 2017, 2018 and 2019, which Olowo estimated to a loss of revenue totalling N5.6 billion.
Read the full statement here
- 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”
- Property owned and occupied by a pensioner is exempted from paying LUC
- 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%
- 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%
- 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.
- 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.
- 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
- The penalty for obstruction of officials and damage to property identification plague has been reduced from N250,000 to N100,000
- The penalty for inciting a person to refuse to pay LUC has been reduced from N250,000 to N100,000
- The 2020 LUC Law introduced a 10% and 20% special relief for Vacant properties and Open empty land, respectively.
- The right of enforcement has been reduced from notification of three (3) default notices to (2) default notices.
- Profit oriented Cemeteries and Burial Grounds are no longer exempted from payment of Land Use Charge
- Private Libraries are also no longer exempted from paying Land Use Charge
- 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.
- 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 – 7701*7# 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
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