Lagos State reverses Land Use Charge to pre-2018 rates

Further to the tensions of Lagosians on the exorbitant rates for land use charge, the Lagos State Government has issued a reform that will ease the financial burden of residents. The Lagos State Government (LASG) has, therefore, reversed the rates in the Land Use Charge (LUC) to the amount before 2018. However, the 2018 method of valuation will remain the same.



LASG has also waived penalties for 2017, 2018, and 2019 which will be a loss of over NGN5.7 billion in revenue. The LUC reform is another way LASG wants to lower the financial pressure on Lagosians in response to the pandemic.



Land Use Charge combines all property and land-based rates and charges payable under Lands Rates, Neighborhood Improvement Charge, and Tenement Rates Laws of Lagos State. The legal backing is the Lagos State Land Use Charge Law (2020), while a property owner is liable to pay LUC on taxable property. Two years ago, LASG increased the LUC rate and the basis for valuing a property. The review led to a higher amount in the Land Use Charge payable by property owners.

Nine (9) changes in the Land Use Charge Law 2020

The reforms in the Lagos State Land Use Charge Law 2020 are:
  1. Scope of coverage: Profit-oriented libraries, cemeteries, and burial grounds are no longer exempt from Land Use Charge.

  2. Persons exempt: Property owned and occupied by a pensioner is exempt from paying LUC. The term Pensioner now includes “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”.

  3. Additional incentives: Introduction of COVID-19 incentive of 10% as well as a discount of 15% for early payment before the due date. The review brings the total discount for prompt payment to 25%. Property owners in the Lagos State can make good use of the opportunity to pay their LUC bills that will soon be distributed. Also, owners of vacant properties and open empty land have relief of 10% and 20%, respectively.

  4. Lower rate: A forty-eight percent (48%) decrease in the annual charge except for agricultural land with a reduction of 87%.


New annual rates for land use charge

ClassificationOld (%) New (%) Change(%)
Residential Property
Industrial Premises of
Manufacturing Concerns
Residential Property /
Private School
(Owner & 3rd Party)
Residential Property
(Without Owner in residence)
Commercial property
(Used by occupier for
Business Purposes)
Vacant Properties and
open empty Land
Agricultural Land0.0760.01-86.8

Annual rates in Lagos State Land Use Charge Law 2020
Source: Lagos State Government
  1. Lesser fine: Reduction in the penalty for late payment as follows:

    45-75 days from 25% to 10%;

    75-105 days from 50% to 20%; and

    105-135 days from 100% to 50%.

6. Penalty: A sixty percent reduction in the fee for inciting a person to refuse to pay LUC, obstruction of officials, and damage to property identification cards. The new charge is NGN100,000 (Old: NGN250,000).

7. Right of enforcement: The number of default notices is two (Old: Three).

8.  Right to select an agent: The Commissioner can appoint any person, including an occupier of a chargeable property, as an agent of the owner to collect Land Use Charge.

9. Additional payment channels: Payments can be made online via and through the USSD Code of the designated banks. For complaints about bills, send e-mail to [email protected][email protected]or call 0700LAGOSLUC, 08058584486 and 09086786001. Residents can address LUC disputes to the Head Office of Lagos State Appeal Tribunal at Plot 3, Otunba Jobi Fele Way, Alausa, Ikeja. 

Closing remarks

In the long-term, a society can achieve more when government revenue policy considers the economic welfare of citizens. The timing and provisions of the revised LUC law in Lagos State is a good initiative. To download a reference sheet on the new provisions, click here.

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