NIESV Lagos Reacts To 2018 Land Use Charge Review
The Chairman of the Lagos State Branch of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Mr Adedotun Bamigbola has reacted to the review of the Land Use Charge (LUC) in the state, which was announced by Governor Babajide Sanwo-Olu on Wednesday.
He said the review was a welcome development and very much anticipated. He recalled that NIESV, based on the Technical Committee set up by the Lagos Branch on the matter, had advised on the review and reversion to the previous rates in 2018.
The Lagos State Government, on Wednesday, August 5, 2020, cancelledthe 2018 Land Use Charge Law and reverted to the pre-2018 rates upholding method of valuation.
Bamigbola, a fellow of the institution, however, stressed that professionals in the real estate sector needed to get the numbers out and see the impact the review would create in the system.
He said, “The review is a welcome development and very much anticipated. You will recall that our institution, NIESV, based on the Technical Committee set up by the Lagos Branch on the matter, had advised on the review and reversion to the previous rates in 2018. We also recommend some amendments to the law which we believe are now in
“However, we need to get to the numbers out and see the impact this will create in the system. This will be best done when we as professionals in real estate economics have the details to work with. We are already requesting for that to better inform the public.”
The administration of Mr. Akinwunmi Ambode had repealed the initial Land Use Charge law replacing it with an amended copy. Consequently, the amended LUC Law 2018 received wide range condemnation from residents and stakeholders, describing it as “repressive and anti-masses.”
The Commissioner for Finance, Dr. Rabiu Olowo and his Information and Strategy counterpart, Mr. Gbenga Omotoso, yesterday, announced the state government’s decision at a media briefing in Alausa, Ikeja. Olowo said the new LUC Law 2020 was a product of series of stakeholder meetings, designed to accommodate the agitations of residents and reduce the financial pressure on citizens as it relates to land use.
He said: “Still on reductions, another major sector that had its charge reduced is the agricultural sector, which annual charge rate for Agricultural land was reduced from 0.076 to 0.01 per cent. This is an 87 per cent, reduction from the old rate”.
The government, however, re-introduced the 15 per cent early payment discount which has been increased by a 10 per cent, special COVID-19 incentive, making it 25 per cent when payment is paid before the due date.
“Unlike in the 2018 law pensioners now include retirees from private and public institutions in the state “or any person that has attained the age of 60 years and has ceased to be actively engaged in any activity or business for remuneration”, exempting their properties from paying land use charge as well.
“Also, profit-oriented cemeteries and burial grounds, private libraries are no longer exempted from payment of Land Use Charge. We have completed the LUC Reform process and review of bills. Property owners should expect to receive their 2020 LUC bills shortly and we expect property owners to leverage on the 25 per cent early payment
“Furthermore, the LUC payment can now be made Online via https://Lagos.ebs-rcm.com Payment can also be made using USSD Code toany of our designated banks with the appropriate code.”