Land Use Charge




Interpretation. 1. In this Law –

“Annual Charge Rate” means the percentage of the assessed value of the property over a period of twelve months;

“Assessment Appeal Tribunal” or Tribunal means the Assessment Appeal Tribunal establishment under section 12 of this law;

“Building” includes anything constructed or place on, in, over or under land but does not include a highway or road or a bridge that forms part of a highway or road;

“Charge” means an assessed amount on property payable under this Law;

“Chargeable person” means a person liable to pay Land Use Charge on a chargeable property or his successors-in-title, assigns, executors and administrators;

“Chargeable Property” means any property in respect of which Land Use Charge is payable;

“Commercial Property” means any property that generates revenue;

“Commissioner” means commissioner for Finance or such other member of the State Executive Council for the time being in charge of Finance;

“Designated Bank” means a company carrying out banking activities as provided for under the law and listed as bank that may collect on behalf of the Government any Land Use Charge payable under this Law;


“Exempt Property” means any property of a class described

under section 7;

“Financial year” means any period of twelve (12) months

beginning from January 1 and ending on December 31;

“Governor” means the Governor of Lagos State;

“High Court” means the High Court of Lagos State;

“Improvement to property” means a building structure,

fixture or fence erected on or affixed to land, or a movable

structure that is designed to be occupied for residential or

business purposes whether or not affixed to the land;

“Land Use Charge” includes all property and Land Based

Rates and Charges payable under the Land Rate Law, the

Neighbourhood Improvement Charge Law and the

Tenement Rate Law as may now be computed on the basis

of the Schedule of this Law;

“Market value” means the total sum of Land Value and

Building Development;

“Occupier” in relation to a property, shall include not only a

person whether lawfully or unlawfully in actual occupation

of the whole or part of such property but also any person

with a right to actual or beneficial occupation or mandated

to occupy the land by a person with such right, whether

solely or concurrently with other persons, although this does

not mean it must be of pecuniary benefit and does not

include a lodger;

“Owner” in relation to any property shall include the person

for the time being receiving the property in connection with

which the word is used, whether on his 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 direct from the Sate whether under lease, licence

or otherwise and will include the estate of a deceased

holder of a right of occupancy, whether expressly granted by


the Governor or otherwise, and shall include every assignee

from a holder;

“Property” includes –

(i) a building;

(ii) any improvement on land;

(iii) a parcel of land, whether or not reclaimed,

waterlogged or otherwise;

(iv) a parcel of land and any building or improvement;

(v) a wharf or pier; or

(vi) leasehold of up to ten (10) years;

“State” means Lagos State of Nigeria;

“Structure” includes a building or other thing erected or

placed in, on, over or under land whether or not it is affixed

to the land.

Land Use Charge. 2. (1) Subject to the provisions of the Law, is imposed a land based

charge, to be called Land Use Charge which shall be payable on all

real property situate in the State;

(2) For the purpose of this Law, each Local Government Area in

the state shall be the collecting authority and it shall be the only

body empowered to levy and collect Land Use Charge for its area of


(3) Each collecting authority may delegate to the State, by

written agreement, its functions with respect to the collection of

rates and the assessment of privately-owned houses or tenement

for the purpose of levying such rate as may be prescribed under this


Property liable 3. Land Use Charge shall be payable in respect of any property that is

to charge not exempt under section 7 of this Law.

Identification or 4. (1) The commissioner shall undertake or cause to be

assessment of a Property. Undertaken an assessment of chargeable properties in such areas of

the State as the Commissioner may designate.

(2) For the purpose of subsection (1), the commissioner may

appoint such property identification officers, professional valuers or


their authorized assistants may, on any day between the hours of

7:00 am and 5:00 pm;

(a) enter, inspect, survey and asses the property;

(b) request for documents or other information to be

produce to the identification officer or professional


(c) take photographs; and

(d) make copies of necessary documents.

Persons liable to 5. The owner or an occupier holding a lease of ten (10) years and above

pay charge. Is liable to pay Land Use Charge in respect of any taxable property.

Value of Land Use 6. (1) As from commencement of the law, the annual amount of

Charge rate. the land Use Charge payable for any Property shall be arrived at by

multiplying the Market Value of the Property by the applicable

Relief Rate and Annual Charge Rate using the prescribed formulae

outlined below and more particularly described in the Schedule of


Land Value + Building Developments Value x Relief Rate x Charge


(2) The land value and building value rates constituting the

Market Value of the Property shall be reviewed at least once every

five years on the basis of information available to professional

valuers, and may vary from area to area. Pending such periodic

reviews, the land value rates and building valued rates may be set to

rise in line with the rate of inflation as determined by the

Commissioner from time to time.

(3) The Relief Rate shall be set from time to time by the

Commissioner and published in the State Official Gazette which may

vary from person to person or area to area and may reflect one or

more factors including but not limited to:

(a) the age and retirement-status of the Owner;

(b) Depreciation Rate of the property;

(c) whether or not the Owner is physically challenged;

(d) the length of time for which an Owner has been

resident in the Property in question; and

(e) the speed and efficiency with which the Owner pays

the Land Use Charge.

(4) The value of the annual charge rate for the financial year in

which the Law comes into force, and in each subsequent financial

year shall be set by the commissioner, and be published in the State

Government Official Gazette and in one or more newspapers

circulating within the State.


(5) The Commissioner may from time to time make regulations

providing for self-billing and electronic payment of the Land Use

Charge by Owners.

Payment of Charge. 7. A person liable to pay Land Use Charge shall pay into any of the

designated banks listed in the Land Use Charge Demand Notice.

Promises exempted 8. (1) The following categories of properties shall be exempted

from payment of from payment of Land Use Charge -

Land Use Charge. (a) Property owned and occupied by a religious body

used exclusively as a place of worship or religious


(b) Public cemeteries and burial grounds;

(c) Property used as a registered educational institution

certified by the Commissioner to be non-profit


(d) Property used as public library or as a private library

certified by the Commissioner to be non-profit


(e) Any Property specifically published in the State

Official Gazette;

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

Provided that if any of the exempted property is leased out

to private entities for revenue generation, it shall not be

exempted for the purposes of Law;

(2) The Commissioner may, by notice published in the State

Government Official Gazette grant partial relief for a

Property that is occupied by a non-profit making

organization and used solely for the community games,

sports, athletics or recreation for the benefit of the general

public; used for a charitable or benevolent purpose for the

benefit of the general public and owned by non-profit

making organization.

Loss of exemption. 9. (1) An Exempt Property or part of an Exempt Property shall

become liable for Land Use Charge if the –

(a) use of such Property changes to one that does not

qualify for the exemption; or

(b) Owner of the Property changes to one who does not

qualify for the exemption.

(2) If the status of a Property changes, a Land Use Charge

imposed in respect of that Property shall be pro-rated so that the


Land Use Charge is payable only for that part of the year in which

the Property, or part of it, is not exempt.

(3) An Owner of a Property shall notify the Commissioner in

writing promptly upon the loss of an exemption which the Owner

had hitherto enjoyed.

(4) Failure to make the notification indicated in sub-section (3)

alone shall be an offence punishable with a fine of up to three (3)

times the value of the exemption in issue.

Land Use Charge 10. (1) The Commissioner shall cause to be issued in each Financial

Demand Notice. Year a Land Use Charge Demand Notice with respect to every

chargeable Property that has been assessed in accordance with the


(2) The Land Use Charge Demand Notice may be delivered to

the Owner or Occupier and can also be requested for by either the

Owner, Occupier or authorized agent of the Property at any of the

Land Use Charge offices or via electronic platform.

(3) If there is no Owner or Occupier or agent available to take

delivery, the Land Use Charge Demand Notice shall be posted on

the Property and such posting shall be deemed sufficient delivery of

the notice.

(4) The person liable to pay the amount of Land Use Charge on

the demand notice shall within thirty (30) calendar days after the

date of delivery of the Land Use Charge Demand Notice pay that

amount at one of the designated banks specified in the Demand


(5) Upon an application in writing made by the Owner, the

Commissioner may reduce the Land Use Charge by such discount

as is specified in the demand notice, if the Owner pays with fifteen

(15) days of receiving the demand notice.

Power Of Appoint 11. The collecting authority may by notice in writing appoint any person

including any Occupier of a taxable Property to be an agent of the

Owner and the person declared agent of the Owner for the

purposes of this Law, may be required to pay the Land Use Charge

which is or will be payable by the Owner from any moneys which

may be held by the agent for or due to or to become due by the

agent to the owner and in default of such payment the charges shall

be recoverable from the agent.

Indemnification of 12. Every person liable under this Law for payment of Land Use Charge

Agent. on behalf of an Owner may retain out of any money coming into his

hands on behalf of or becoming due from the agent to the Owner

as may be sufficient to pay the charge, and shall be indemnified


against any person for all the payments made by the agent under

this Law.

Establishment of an 13. (1) The Governor shall establish an Assessment Appeal Tribunal

Assessment Appeal (in this Law referred to as the “Tribunal”) which shall consist of not

Tribunal less than nine members.

(2) The Governor shall appoint one of the members of the

Tribunal as its Chairman.

(3) A minimum of three members shall constitute a panel of the


(4) Members of the Tribunal shall hold office for such period as

may be prescribed by the Governor and shall be paid such

allowances as the Governor may, from time to time determine.

Powers of the 14. The Tribunal may-

Assessment Appeal (a) by summons, requires the attendance of any person,

Tribunal examine him and may require answers to any

question which it may deem fit to put concerning an

appeal before it; (b) require and enforce the production of all books, and

document which it may consider necessary;

(c) administer oaths and affirmations;

(d) levy fine against an appellant if the members of the

Tribunal consider that the appeal before it is of a

frivolous nature and such fine shall not exceed 25%

of payable charge;

(e) adopt Alternative Dispute Resolution mechanism in

resolving disputes; and

(f) subject to the approval of the State House of

Assembly, make rules for its practice and procedure

Appeal against 15. (1) A person may appeal to the Tribunal if he aggrieved by -

Assessment. (a) a decision that the property which he owns is a

chargeable Property; or that he is liable to pay Land

Use Charge in respect of such Property; or

(b) any calculation of an amount which he is liable to pay

as Land Use Charge, and the Tribunal shall make such

decision as it deems fit.

(2) The time allowed for an appeal to the Tribunal shall be thirty

(30) days after the date of delivery of the Demand Notice.

(3) The onus of proving that an assessment of a property is

excessive shall lie on the Owner of the Property.


(4) A person giving evidence before the Tribunal shall, in respect

of any evidence given by him or any document he is required to

produce, be entitled to all the privileges to which a witness in a trial

before the Magistrate Court is entitled.

(5) In respect of the compulsion of witnesses, the Tribunal shall

have the same powers as that of a Magistrate Court.

(6) The Tribunal may confirm, reduce, increase or annul the

assessed value.

(7) An appeal against a decision of the Tribunal may be made of

the High Court of the State.

Mediation Process. 16. (1) In resolving disputes arising from the provisions of section

15 of this Law, the parties shall submit to a confidential mediation

in an effort to resolve such disputes.

(2) Where the mediation does not resolve dispute within fortyfive

(45) working days of the first session or when the mediator

declares an impasse, the mediation shall be deemed inconclusive

and parties shall be at liberty to resolve their dispute formally at the

Tribunal or through any other lawful means.

Conditions of Appeal. 17. An Appeal shall not lie unless –

(a) notice is given in the prescribed manner to the Tribunal;

(b) the presence fee is paid to the Tribunal;

(c) in the case of a person aggrieved with the assessment of his


(i) 50% of the amount of the assessed annual Land Use

Charge being disputed is deposited directly into the

State Land Use Charge Account; and

(ii) the appellant has produced to the Tribunal the

receipt for the payment of the amount from the bank

and such receipt has been validated.

Land Use 18. (1) The Commissioner shall establish and maintain a fund, to be

Collection Fund. Known as the Land Use Charge Collection Fund, consisting of all

Land Use Charge payments deposited in each designated bank in

accordance with this Law.

(2) At the beginning of each month, the Commissioner shall

determine the total amount of Land Use Charge payments

deposited in the designated banks.

(3) The Commissioner shall, not later than (10) days after the

beginning of each month, pay to each Local Government Council in

the State a share of the Land Use Charge Collection and standing on

deposit in the designated banks.

(4) The share to be paid by the Commissioner to each Local


Government Council shall be such percentage of the Net Land Use

Charge on deposit at the end of each month as agreed between the

State and all the Local Government Areas.

Recovery of Land 19. (1) The Attorney-General of the State shall, on the

Use Charge. Recommendations of the Commissioner apply to a court to-

(a) recover sums payable under this Law;

(b) recover any Land Use Charge or penalty incurred

under this Law by a deceased person at any time

before his death;

(c) attach a person’s earnings, and/or person’s goods

where a court has made a liability order against that


(2) Any officer of the Attorney-General’s office acting on his

behalf may sue in the name of the State to recover any sum payable

under this Law from the Owner.

Non-compliance with 20. Any person whothe

Law, obstruction of (a) refuses or neglects to comply with any provision of

officials and Damage to this Law when required to do so by the Property

Property identification officer or an assessor;

Identification plaques. (b) prevents, hinders, or obstruct any Property

identification officer or an assessor in the course of his

lawful duty; or

(c) removes from or damages or destroys a Property

identification plaque on any property or building, commits

an offence and shall be liable on summary conviction to a maximum

fine up to Two Hundred and Fifty Thousand Naira only

(N250,000.00) or to a term of imprisonment for a period of three

(3) months or both.

Penalty for inciting a 21. Any person who -

person to refuse to (a) incites another person to refuse to pay any rate

pay Land Use Charge under this Law on or before the day on which it is

payable; or

(b) incites or assist any person to misrepresent in any

way his chargeable capacity,

commits an offence and shall be liable on summary conviction to a

maximum fine of up to Two Hundred and Fifty Thousand Naira only

(N250,000.00) or to a term of imprisonment for a period of three

(3) months or both.


Default in payment 22. (1) Where a person who has received a Land Use Charge

of Land Use Charge. Demand Notice fails to pay the amount within the period specified

in the notice, the charges payable shall be increased by the

following percentage -

(a) between 45 calendar days and 75 calendar days –


(b) between 75 calendar days and 105 calendar days –


(c) between 105 calendar days and 135 calendar day –


(2) If payment is not made after 135 calendar days, the Property

on which the Land Use Charge is payable shall be liable to

enforcement of the provisions of this Law by the State or its

appointed agent until all outstanding taxes, penalties and

administrative charges are paid.

(3) The Owner is however entitled at any time to apply to the

Commissioner for a release of the Property and other moneys

accruing to him upon payment of the outstanding taxes,

penalties and administrative charges :

Provided that where rights or liabilities have been created under

the enforcement which may generate income to effect the payment

of the outstanding taxes, penalties and administrative charges

before repayment by the owner, the Owner shall assume all such

rights and/or liabilities.

(4) Whenever Property comes under enforcement as provided

is sub-section (2), such Property shall be advertised as being under

enforcement in at least two national newspapers.

(5) Subject to sub-section (6) below, the rights of enforcement

of the state for default in the payment of the Land Use Charge shall

include rights to file and maintain a civil action against the Owner to

recover the accrued Land Use Charge or to obtain an order of Court

for distraint of the Property or other consequential orders which

the court may deem fit to make in the circumstances, for the

purpose the recovery of the Land Use Charge.

(6) The powers of enforcement indicated in sub-section (5)

above, shall:

(a) not be exercised unless and until warning notices


have been delivered to the Owner and Occupier, or

posted on the Property, on at least three separate

occasions each at least forty-five (45) days apart

from the other, during the six (6) months

immediately prior to the date of exercising the

rights in subsection (5) above; and

(b) be exercised only to the extent reasonably necessary

to recover accrued Land Use Charge.

Failure to remit 23. (1) A person appointed in accordance with the provisions of

Land Use Charge. section 3(2) of this Law who fails to remit Land Use Charge collected

shall be guilty of an offence and liable to refund the amount due

and in addition, a sum equivalent to fifty percent of the amount.

(2) The defaulter in subsection (1) of this section, may further

be liable to imprisonment for a term of six (6) months.

Power to make 24. The Commissioner may make regulations for the proper

Regulations implementation and enforcement of the provisions of this Law sub

subject to the provisions of the Regulations Approval Law.

Application of 25. On and from the dated when Land Use Charge is levied on a

other Laws. Property in accordance with this Law, the provisions of the Land

Rates Law, Neighbourhood Improvement Charge Law and

Tenement Rates Law and any amendments made pursuant thereto

shall cease to apply to that Property.

Repeal and savings 26. (1) Subject to the provisions of this section, the Land Use

Charge Law 2001 shall on the commencement of this Law,


(2) Nothing in this Law shall affect any order, rule, regulation,

appointment, direction given, proceeding taken, instrument issued

or thing done under the enactment hereby repealed; but any such

order, rule, regulation, appointment, direction, proceeding,

instrument or thing if in force immediately before the

commencement of this Law, continue in force, and so far as it could

have been made, given, taken, issued or done under this Law shall

have effect as if so made, given, taken, issued or done.

(3) Nothing in this Law shall be construed so as to prohibit the

continuation of an inspection by property identification officers or

professional valuers and any other persons appointed under the


enactment hereby repealed, begun before the commencement of

this Law.

(4) Funds and accounts constituted under this Law shall be

deemed to be in continuation of the corresponding funds and

accounts constituted under the enactment hereby repealed.

(5) Where any offence, being an offence for the continuance of

which a penalty was provide, has been committed under any

enactment hereby repealed, proceedings may be taken under this

Law in respect of the continuance of the offence after the

commencement of this Law, in the same manner as if the offence

had been committed under the corresponding provisions of this


(6) Where by the enactment repealed by this Law, a time is

fixed for the doing of an act or the performance of duty and in any

particular case that time has expired or but for this Law would have

expired between the date of the commencement of this Law and

the date of its signing, the time so fixed shall, for the avoidance of

doubt, be deemed to have been extended so as to expire not later

than 7 days after the date of commencement of this Law, so

however that nothing herein shall be constructed to authorize any

extension of time for doing or performance, as the case may be, of

an act or duty otherwise to be done or performed within a period of

time limited by any such repealed enactment.

(7) In this section, “enactment hereby repealed” means the

Land Use Charge Law 2001, Cap. L79, Laws of Lagos State of Nigeria


Citation and 27. This Law may be cited as the Land Use Charge (Repeal and Re-

Commencement. enactment) Law 2018.




The following will be used to determine the annual amount of the Land Use Charge payable

under this Law:

Land Value + Building Developments Value x Relief Rate x Charge Rate

Interpreted as,

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 neighborghood, 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 separate ownership


BR = the average construction value of medium quality buildings and improvements 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


DR = the Depreciation Rate for the buildings and improvements of land which accounts for

the building being of 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.

RR = the rate of relief from tax (if any) applicable to the Owner and 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 years.


CR = The annual charge rate expressed as 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 12 years, minor, and retired Owners and

Occupiers, on the one hand, and other Owners and Occupiers on the other.

[(LA x LV) + BA x BV x DR) x ]=RR]= the assessed value of the property.