The Lagos State government has introduced a 15 percent incentive for property owners who pay their Land Use Charge (LUC) promptly and comply with the state’s property laws.
This incentive is part of an effort to encourage voluntary compliance and boost state revenue for infrastructure development.
Speaking at the Parkview Residents’ Association General Meeting in Ikoyi, Abayomi Oluyomi, Lagos State Commissioner for Finance, explained that the LUC serves as a property tax crucial to supporting the state’s development projects. However, the 15 percent discount is only available to property owners who make early payments before the state begins enforcement actions.
Former Lagos State Commissioner for Finance, Akinyemi Ashade, previously explained how the LUC is calculated for this category of property owners. For a house valued at N20 million, 60 percent of the value (N12 million) is multiplied by 0.076 percent, resulting in an annual fee of N9,120, which equates to N760 per month.
To increase compliance, the state government also plans to collaborate with professional bodies and financial institutions to hold workshops on the LUC, promoting voluntary payment before resorting to legal enforcement. Failure to comply could result in the public naming of defaulters.
Earlier this year, the Lagos State government announced that it had generated N300 million from the LUC in the first four months of 2024, with hopes of reaching the N700 million projection in the 2024 budget, according to Ope George, Commissioner for Economic Planning and Budget.
The Land Use Charge, originally introduced under former Governor Akinwunmi Ambode, faced initial controversy. However, an amended version of the law was passed in 2020 under Governor Babajide Sanwo-Olu’s administration, making property owners liable for the charge on taxable properties.
