key points in the new Lagos 2020 Land Use Charge as Sanwo-Olu Waives Penalties

The Commissioner for Finance, Dr. Rabiu Olowo, expressed his appreciation to Lagosians who have been committed to the payment of their annual Land Use Charge LUC in spite of the challenges posed by COVID-19 pandemic, stating that the payment of LUC is not intended to inflict any hardship on anyone because everyone is a stakeholder in the journey towards achieving a Greater Lagos.

In 2018, there was an increase in the Land Use Charge rate as well as the method of valuation of property.

This twin shock had a sporadic increase in Land Use Charge payable by property owners. However, the present administration of Governor Babajide Sanwo-Olu has decided to review the Land Use Charge (LUC) law by reversing the rate of Land Use Charge to pre-2018 while upholding the 2018 method of valuation”.

“Some of the new reforms introduced include: exemption of property owned and occupied by a pensioner from paying LUC, reduction in the percentage increase in penalties for defaults in paying LUC in the following categories: 45-75 days from 25% to 10%, 75-105 days from 50% to 20% and 105-135 days from 100% to 50%”

Annual charge rate for Agricultural land was reduced from 0.076% to 0.01%. This is an 87% reduction from the old rate

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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.

10% COVID-19 incentive as well as a 15% early payment discount has been introduced to increase the total discount for early payment to 25% before the due date while he urged all property owners in the State to leverage on the discount and pay their LUC bills which will soon be distributed.

Multiple payment channels for the collection of the LUC have also been created by the Ministry to further ease the mode of payment including the use of online channels

A 48% reduction in the Annual Charge Rates:

Owner-Occupied Residential Property 0.076% to 0.0394%
Industrial Premises of Manufacturing Concerns 0.256% to 0.132%

Residential Property/Private School (Owner & 3rd Party) 0.256% to 0.132%
Residential Property (Without Owner in residence) 0.76% to 0.394%

Commercial property (Used by the occupier for Business Purposes) 0.76% to 0.394%
Vacant Properties and open empty Land 0.076% to 0.0394%.

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.

Non-exempted

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

The LUC payments can be made online via https://Lagos.ebs-rcm.com and through USSD Code to any of the designated banks, noting that the Ministry of Finance has also expanded its complaints resolution process and as such Lagosians can make complaints about their bills to [email protected],[email protected] or through telephone numbers 0700LAGOSLUC,08058584486 and 09086786001.

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