Lagos slashes land use charge, forfeits N5.7bn fees
The Lagos State Government has announced that it will reduce its land use charges and other penal fees by reversing the rate of land use charge to what it was before 2018 while still upholding the 2018 method of valuation.
The Commissioner for Finance revealed this on Wednesday via a statement which was titled "Speech delivered by the honourable commissioner for finance at a press briefing on the 2020 new land use charge law".
He also added that the government would waive the penal fees for 2017, 2018 and 2019, which all amounts to N5.7bn.
The commissioner recalled that in 2018, there was an increase in land use charge rates as well as the method of valuation of properties. Which, in turn, increased the charges payable by property owners.
"In addition to this, there is also a 48 per cent reduction in the annual charge rate", Olowo said.
He further explained that owner-occupied residential property was reduced from 0.076 per cent to 0.0394 per cent and industrial premises of manufacturing concerns was slashed from 0.256 per cent to 0.132 per cent.
Also, residential property/private school (owner and third party) was reduced from 0.256 per cent to 0.132 per cent.
Commercial property (used by the occupier for business purposes) was reduced from 0.76 per cent to 0.394 per cent while vacant properties and open empty land went from 0.076 per cent to 0.0394 per cent.
He also added that the annual charge rate for agricultural land was reduced by 87 per cent from 0.076 per cent to 0.01 per cent.
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