Land Use Charge: Lagos State Government Ready for Dialogue

Governor Akinwunmi Ambode

The Lagos State Governor, Mr. Akinwunmi Ambode has expressed the readiness of his administration to dialogue with stakeholders to resolve the Land Use Charge debacle.

The raison de’tre was the outpour of criticisms that trailed the recently revised Land Use Charge Law 2018

Ambode made this known at the ‘Lagos Means Business’ forum with the Organised Private Sector organised by the state Ministry of Commerce, Industry and Cooperatives.

The governor was swamped with questions on the propriety of the Land Use Charge Law, to wit the increased charges. In his response, he said the aim was not to overtax property owners but a decision taken in the ultimate interest of the future of Lagos.

“The law was made in 2001. It provides that every five years, we should review the charges and also find a way to increase. The law was never reviewed 15 years after until in 2017. Now, the question is this; those who are having commercial properties, the rental income they were getting in 2002 as against the rental income they were getting in 2017, is it the same?

“The level of infrastructure that existed in 2002 as against what has happened in the last 15 years, are they the same? Did it not come at a cost? So, why is the market value of the property that you built with N1m 15 years after, you are selling at N20m. Why do you think somebody who is a buyer will pay N20m for it? Is it not because of the facilities around the property? So, we have to sacrifice; that is how it works everywhere.
So, somebody comes and say we have increased (the charges) by 400 per cent. The question is 400 per cent of what? You were paying N10,000 before, now we say you should pay N50,000 and you are calculating and turning statistics upside down by saying it is 400 per cent.” Said Ambode
The governor reiterated that pensioners, religious institution, non-governmental organisations and government institutions were exempted from payment while owner-occupiers are required to pay 0.076 per cent of the value of the property.

“So, who will take care of the ones that are free? If you are owner-occupier, you don’t need to pay. So, it’s the commercial part that people are complaining about.
“Why have we increased the rate? We should have been doing this every five years but I am looking at it that if I must sustain the level of my vision, I have to give something back to people. I don’t have to come and meet you if I continue to borrow money, but we are borrowing to punish you ultimately, which is not what we want because it is even the taxes you pay that will pay the interest and the principal. Somebody needs to tell us the bitter truth for us to sacrifice together and that is what we have done.” He added

Reeling out statistics to explain the challenges that would confront the state in the nearest future, the governor said Lagos was projected to become the third largest consumer market in the world with a population of 35.8 million, closely behind Tokyo and Delhi, while the population growth and rapid urbanisation would put infrastructure and public services under pressure.

According to him, the state requires a minimum of $50bn over the next five years to bridge the gap of infrastructural deficit, adding that a special infrastructure fund that would be driven by the private sector to address social challenges was the way to go.

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