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1.     What is Land Use Charge and is it Legal?

Land Use Charge is a consolidation of all property and land based rates and charges payable under Lands Rates, Neighborhood Improvement Charge and Tenement Rates Laws of Lagos State. The Land Use Charge derives its legitimacy from the Lagos State Land Use Charge Law 2020.

2.     Who is liable to Pay Land Use Charge?

The owner of a property is liable to pay Land Use Charge in respect of any taxable property. The “Owner’’ in relation to any property includes an occupier with a lease of at least ten (10) years or any person for the time being receiving proceeds on the property in connection with which the word is used, whether on own account or as agent or trustee for any other person who would receive the sum if such property were let to a tenant, and the holder of a property directly from the State, whether under lease, license or otherwise;

3.     Are Property Owners Supposed to Pay for Assessment of Their Property?

Assessment of properties for the purpose of Land Use Charge is free and Property Owners are not expected to make any payment whatsoever for the service provided by the Lagos State Government.

4.     How do we compute Land Use Charge on a property?

LUC = [(LA x LR)+(BA x BR x DR)] x RR x CR

LUC = annual amount of Land Use Charge in Naira

LA = the area of the land parcel in square metres

LR = the average Market Value of a land parcel in the neighbourhood, on a per square metre basis in Naira based on the market value of the Property as determined by professional valuers appointed by the Commissioner for that purpose.

BA = the total developed floor area of building on the plot of land in square metres, or the total floor area of apartment unit in a building where apartment has a separate ownership title.

BR = the average construction value of medium quality buildings and improvements in the neighbourhood, on a per square metre in Naira based on the market value of the property as determined by professional valuers appointed by the Commissioner for that purpose.

RR = the rate of relief from tax (if any) applicable to the Owner Occupier in the circumstances shall be determined by the Commissioner and shall be published in the State Government Official Gazette and in one or more newspapers circulating within the State and reviewed by the Commissioner once every five (5) years.

CR = the annual charge rate expressed as a percentage of the assessed Market Value of the Property and which may, at the State Government’s discretion, vary between (a) owner – occupied and other property; (b) residential property and commercial (revenue – generating) property; (c) physically- challenged persons; and (d) persons who have been resident at the same location for at least twelve (12) years, minor, and retired owners and occupiers, on the one hand, and other owners and occupiers on the other.

DR = The depreciation rate for the building and improvement of land which account for the building being of a higher or lower value than the average buildings in the neighbourhood and which also accounts for the degree of completion of construction of  the building

5.     Who is responsible for the assessment of a property and when?

Properties can be assessed by authorized persons appointed by the commissioner. The authorized persons can carry out their assessment between the hours of 7.001.m and 5.00p.m.

6.     What is Relief Rate And how do we apply for Relief Rates?      

  1. Relief Rate is the rate fixed to reduce the burden of Property Owners on payment of Land Use Charge.
  2. The Relief Rates has two (2) components i.e. General and Specific reliefs. The general relief is 40% on all properties and specific reliefs on application to the Commissioner of Finance.

7.     I Own An ‘Empty Land’, Am I Liable to Pay?

Yes. Since, Land Use Charge includes all land based rates.

8.     Is The Amount Due Negotiable?

No, it is not. However, if payment is made before the due date, a discount of 25% is applicable.

9.     How do we get Land Use Charge Demand Notices?

Property Owners do not have to wait for Demand Notices to be delivered by Land Use Charge officials. The Land Use Charge Law 2020 stipulates that Demand Notices can be obtained via;

  1. Can be requested and received by e-mail
  2. Can be collected at Land Use Charge Offices.

10.   How do we make Complaints?

All complaints are to be made via the following channels:

11.   What is Mediation in resolving Land Use Charge disputes and why do we need Mediation before formally proceeding to the Tribunal?

Mediation is an alternate dispute resolution process used in finding solutions to disagreements between the Property Owners and the Land Use Charge Office.

Mediations are handled by the Land Use Charge Assessment Appeal Tribunal.

12.   How do we make payments of Land Use Charge?

The Land Use Charge payments can be made through the following means:

  1. Bank branches
    1. USSD Code
    1. Internet Banking
    1. Mobile Banking
    1. POS.
    1. Other payment platform e.g paga, quickteller, MyTax App.

13.   What Happens To Any Arrears?

Payment is to be made once and in full. However, any amount left unpaid is carried forward to the next year with its interest compliment.

14.   What Happens To The Discount/Provisional Penalty Fee Where The Notice Of Land Use Charge Is Dispatched /Received Late Due To No Fault Of The Owner Of The House?

The Property owner should go ahead to pay the discounted amount while claim would be confirmed with the Proof of Delivery and the account reconciled accordingly.

15.   Why Are The Same Type Of Properties In The Same Area And Occupying The Same Size Of Land Being Charged Different Rates?

For the purpose of Land Use Charge, properties are assessed individually. For any two similar properties, the physical appearance, aesthetic features and age will determine the property class rate (i.e. high, medium, and low) to be adopted in the valuation of the property. Another reason for charging different rates on any similar properties is the usage and status of occupation. See table below for charge rate for different properties

S/NDefiniton AreaCharge Rate
1Owner-Occupied Residential Property0.0394%
2Industrial Premises of Manufacturing Concerns0.132%
3Residential Property/Private School (Owner & 3rd Party)0.132%
4Residential Property (Without Owner in residence)0.394%
5Commercial property (Used by occupier for Business Purposes)0.394%
6Vacant Properties and open empty Land0.0394%
7Agricultural Land0.01%

16.   Can I Pay My Land Use Charge In Installments?

Yes, you can pay in installments as long as payment is made using the Bank Payment Code (BPC) as stated in the bill.

17.   Can I Pay To Any Bank?

There is a list of designated banks on the reverse side of your Demand Notice. It is also important to make payments using the Bank Payment Code stated in the demand notice.

18.   Do I Need To Engage Touts To Assist Me With My Land Use Charge Bill?

There is no reason to engage the services of touts since our entire communications channel are open, as we strive to maintain customer satisfaction.

19.   I Paid My Land Use Charge Last Year But The Payment Has Not Reflected In This Year’s Assessment, What Do I Do?

 Please pay this year’s assessment and visit any of our Walk-In Contact Centers with proof of last year’s payment for reconciliation.

20.   My Neighbours Have Received Their Land Use Charge Bill, Why Have I Not Received Mine?

There is no reason why you should not have received your bill. Please forward all request for bills via phone(0700-LAGOS-LUC) or email([email protected]) . Bills can be delivered physically to a designated address or sent via email to a specific email address.

You can equally walk into any of our offices to request for a printed copy of your bill.

21. The Demand Notice I Received Is Addressed To “Property Owner”   Should I Pay This Bill?

Yes, you are required to Pay. Kindly register your complaints through our hotlines or e-mail with your appropriate contact details. The matter will be addressed and an updated bill re-issued.

22. Are some properties exempted from paying land use charge ?

Yes, the following properties shall be exempted from payment of from Payment of Land Use Charge-

(a) a property owned and occupied by a religious body and used exclusively for public worship or religious education;

(b)  public cemeteries and burial grounds excluding profit oriented cemeteries and burial grounds;

(c) a recognised and registered institution or educational institute certified by the Commissioner for Finance to be non-profit making;

d) property used as public library;

(e) any property specifically exempted by the Governor by notice published in the State Government Official Gazette;

(f) all palaces of recognised Obas and Chiefs in the State.

(g) A property owned and occupied by a pensioner


23. How do I apply for exemption or special relief?

You are required to apply in writing to the Honourable commissioner of finance with supporting evidence of your claim for special relief or exemption.

24.   How Does Payment of Land Use Charge Benefit The Public?

Land Use Charge payment is benefit driven and it will further enable the State Government to provide more social amenities and economic infrastructures to the populace.

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