More Pains For Lagosians As Lagos Plans To Increase Land Use Charge

Lagosians, especially tenants are in for more pains as the Lagos State Government is set to increase Land Use Charge this month.

The increase in the LUC charge is supposed to kick off on 1 January, this year but with President Goodluck Jonathan giving Nigerians a bad New Year gift of fuel subsidy removal, not much has been heard about the new increase.

It is expected that after the tension arising from the removal of fuel subsidy would have waned, the state government will announce the take off of the new land use rate.

Many landlords and tenants have appealed to the state government not to increase the LUC rate as it would bring hardship to the people.

Certainly, it is the tenants that will bear the brunt as the landlords would pass the increment to the tenants in form of house rent increase.

Governor Babatunde Fashola had during the budget presentation to the state House of Assembly announced that government would hike the LUC rate by January 2012.

“Unfortunately, but necessarily, we must implement a review in the annual property rates under the Land Use Charge,” Fashola had said.

“The reasons are simple. The massive infrastructural renewal in Yaba, Apapa, Ikoyi, Victoria Island, Lekki, Iba, Surulere, Mushin and other parts of Lagos has increased the property values and rental income to property owners in this state,” he added.

“The rate of the Land Use Charge has remained unchanged since 2002 and although it was agreed that the rate will be increased in 2009, but because of the global financial crises, we refrained from doing so until now.

“So for nine years, we have kept the same rate of Land Use Charge without review even though all the variables of the economy, inflation, interest, and exchange rates have increased,” he continued.

“I must now necessarily announce an increase of 0.05% in the rate of Land Use Charge effective from 1 January, 2012,” Fashola stated.

The governor said although the revenues government expected from this increase would not be sufficient to meet all its costs, it would be useful and necessary if “we must continue to fund the new minimum wage, security, education, healthcare, housing, waste management and inner city and neighbourhood road repairs and construction without depending on the diminishing and at best unstable oil prices.

“As we exercise these choices, we are mindful of the genuine aspirations and desires of our citizens to own their houses and transact businesses with their properties,” he said.