With a 48% reduction in Land Use charges & a 5.8bn waiver on penalties, Lagos opens to homeowners

Land Use

One of the major criticisms against the Lagos state government has been the prohibitive costs of owning a home. These costs start all the way from purchasing land with restrictive land use charges and crippling penalties when homeowners are unable to pay their land use charges. Added to this, the recent increases in Land use charges in Lagos state, many have wondered if the Lagos state really cares about its mandate to become a megacity. In 2018, former governor Akinwunmi Ambode introduced even stricter land use charges. that were protested by citizens, landlords and tenants, who all felt this would increase pressure on the already overburdened real estate industry. It seems governor Babajide Sanwoolu is listening because he has just repealed the Land Use charge Act of 2018 and waived the penalties that accrued for default since the Act was introduced in 2018.

The commissioner for finance Dr. Rabiu Olowo made announcements on this on behalf of the governor, explaining  that the Owner-Occupied Residential Property charged at 0.076 per cent, was now 0.0394 per cent, while Industrial Premises of Manufacturing Concerns, which was 0.256per cent, would be charged at 0.132 per cent and  Residential Property/Private School (Owner & 3rd Party) charged at 0.256 per cent had been reduced to 0.132 per cent.

This is part of the reforms the Ministry of Finance is implementing across many sectors to reduce pressure on the economy and mitigate the coming economic recession that will be furthered by the global pandemic. Reducing penalties for defaulting on 45 to 75 days to 10% from the former penalty of 25%. All these reductions exist to encourage more people to save or invest towards home ownership and will hopeful encourage corporate organizations to join the real estate business.
It is refreshing to have good news to report on the Counter culture blog and the Lagos state should be commended for leading the charge on reducing economic pressure on the citizens of the state.

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