Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

LASG Land Use Act Mathematical Facts And the Truth – Urgent Call For Sensitivity and Good Governance


Tuesday, March 13, 2018  05.02PM / Nigeria Employers' Consultative Association (NECA) 

There is a common saying that “seeing is believing”. It is in this light that we are sharing with members of the public the mathematical facts and truths and the new Land Use Charge of Lagos State.

Proshare Nigeria Pvt. Ltd.

The Mathematical Facts And Truths

1.      A company paid N420,626.52 (Four hundred and twenty thousand, six hundred and twenty-six Naira, fifty-two kobo) in 2017 and in 2018, the Lagos State Government has asked the same company to now pay N5,804,623.30 (Five million, eight hundred and four thousand, six hundred and twenty-three naira, thirty kobo). This amounts to 1,279 percent increase over the 2017 rate. 

The Lagos State Government increased the assessed market value of the property from N106,758,000.00 in 2017 to N762,762,600.00 in 2018, an increase of over 600 percent. 

The facts as presented above are not unique to this organization but representative of the various demand notices that the Lagos State Government has sent out to residents of Lagos. As a Business Membership Organization, we have in our records the demand notices that have been received by not less than one hundred companies in Lagos State, indicating an increase of not less than 500 percent of the rate paid in 2017.

The alleged 40 percent discount of market value by Government is not true as per the above Land Use Charge demand notice. It may interest the public to note that it is not automatic but subject to the discretion of Government.

The Illogicality Of Some Government’s Reasons For Land Use Charge Increase
1.      The Land Use Charge has not been increased since 2002: It is Government’s negligence not to have reviewed the Land Use Charge every 5 years as stipulated by the Act. It, therefore, runs against rationality for government to suddenly wake up and decide to punish residents for its negligence of time past. 

2.  Use of Market Value: In other climes where a similar tax operates, Asset Market Value is always discounted on the invoice that is sent to tax payers. No reasonable sovereign would use actual market value to charge its residents property tax. 

Figures in demand notices are based on several years of arrears: As seen in the demand notices above and many other demand notices in our record, most property owners are not indebted to the Lagos State Government as regards payment of 2017 Land Use Charge. Thus, the 2018 figures as shown above are strictly for 2018.  

As we stated at various fora, the new Land Use Charge is punitive with potential to incapacitate businesses and further impoverish residents. 

We, Nigeria Employers' Consultative Association (
NECA) request the Lagos State Government to retrace its steps in the implementation of this obnoxious law. We are open to discuss with the Government on this vexatious issue, with the view of reaching an amicable solution that will be acceptable to businesses and residents of Lagos State.

 Proshare Nigeria Pvt. Ltd.                                                         Proshare Nigeria Pvt. Ltd. 

Larry Ettah                                                             Olusegun Oshinowo

President                                                                Director General

Proshare Nigeria Pvt. Ltd.

Related News

  1. Lagos State And The Politics Of Taxation
  2. VIDEO: Perspective on the Social Impact of Lagos Land Use Charge 2018
  3. VIDEO: LCCI hosts a dialogue on New Lagos Land Use Charge Law
  4. Land Use Charge : Group Sues Lagos State Govt, Seeks An Order Striking Out Section 3, 5 and 6
  5. Lagos State Land Use Charge Act 2018 - An Uncalled For Outrage(?)
  6. Institute of Estate Surveyors and Valuers React to New LASG Land Use Charge
  7. LCCI urges Lagos Govt to suspend new Land Use Charges
  8. Questions Arise Over Insertions Of AlphaBeta Consulting LLP Into Lagos Land Use Act
  9. LASG Land Use Charge: A Civil Option And Strategic Cause of Action
  10. The New Land Use Charge Law of Lagos State
  11. Lagos State House of Assembly Passes Land Use Charge Bill
  12. Deed of Gift - Estate and Tax Planning
Related News