Lagos State Governor, Mr Babajide Sanwo-Olu has reversed the amendment of the Land Use Charge effected by the administration of his predecessor, Mr Akinwunmi Ambode in 2018.
Specifically, the government cancelled the 2018 land use charge and reverted to pre-2018 land use charges.
The decision was announced today at an ongoing press briefing by Commissioner for Finance, Dr. Rabiu Olowo.
The government also waived penalties for land use charge for 2017, 2018 and 2019, which according to the Commissioner translates to a loss of revenue amounting to N5.6bn.
The 2018 amendment had generated hue and cry from residents and business owners who considered it to be outrageous.
According to Olowo, “In 2018, there was an increase in Land Use Charge rate as well as the method of valuation of properties, this shock had a sporadic increase in Land Use Charge payable by property owners.
“In view of the aforementioned, the current administration decided to review the Land Use Charge law by reversing the rate of Land Use Charge to pre-2018 while upholding the 2018 method of valuation.
“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 additional to the re- introduction 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 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.”