Since the Lagos State Land Use Charge Law was revised, property owners across Lagos have received assessment notices, some of them surprisingly high. Understanding what Land Use Charge is and how it works prevents nasty surprises.
What Is Land Use Charge?
Land Use Charge is an annual property tax payable by all property owners in Lagos State. It replaced the previous system of multiple separate levies (tenement rates, neighbourhood improvement charge, ground rent) with a single consolidated charge.
Who Pays It?
The property owner, not the tenant. If you own property in Lagos, you are liable for Land Use Charge regardless of whether the property is occupied, vacant, residential, or commercial.
For managed properties, the management company typically handles payment on the owner's behalf and includes it in the financial reporting.
How Is It Calculated?
The charge is based on an assessed property value determined by the Lagos State government, not the market value you paid. The formula considers location, property size, type, and use. Residential properties pay a lower rate than commercial ones.
The assessed values have been controversial — in some cases significantly higher than what owners expected. If you believe your assessment is incorrect, you have the right to object within a specified period.
What If You Do Not Pay?
Non-payment of Land Use Charge can result in a property lien, meaning the government can place a legal claim on your property. In extreme cases, it can lead to sealing of the property and legal action. Penalties and interest accrue on unpaid charges.
Practical Steps for Property Owners
- Ensure your property is registered for Land Use Charge
- Check your assessment notice and verify the details are correct
- Budget for the annual payment as part of your ownership costs
- If you use a management company, confirm they are handling this on your behalf
For diaspora owners: this is one of the many ongoing costs that a property management company handles. JESFEM includes Land Use Charge tracking and payment in our standard management package.
