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OPS urges LASG to re-consider requirements not listed for amendments in new LUC law

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Lagos State Governor, Akinwunmi Ambode. PHOTO: LASG

While commending the Lagos State Government on the reduction in the invoiced rate of the Land Use Charge (LUC) demand notices for 2018 sent to businesses and residents, members of the Organised Private Sector (OPS) has urged the state government to reconsider some critical requirements which were not listed for amendments in the new law.

The group in a statement on Tuesday, said its position is in view of the robust social dialogue it had on the outcome at the public hearing on the LUC law, seeking for considerations in re-crafting the law for the good of all residents and businesses in the state.

The sector, which comprises the Manufacturers Association of Nigeria (MAN), Nigeria Employers Consultative Association (NECA), Nigerian Association of Chambers of Commerce, Industry, Mines & Agriculture (NACCIMA), Lagos Chamber of Commerce and Industry (LCCI), National Association of Small and Medium Scale Enterprises (NASME) and National Association of Small Scale Industries (NASSI), made it presentation is in two parts.

The group therefore, proposed as follows: Discount – increase from 40% to 50% (permanent), Base Rate for commercial property – reduce from 0.761% to 0.4560%, Base Rate for industrial/manufacturing concerns – reduce from 0.255% to 0.230%, Assessed value should be determined from time to time by appropriate professional institution (within a period of 3-5 years).

The group, who quoted some sections of the LUC law, hinged its presentation on amendments relating to the law and its proposition concerning implementation of the law.

On conditions of appeal, they said that the requirement to make payment, at whatever percentage, even when the LUC is challenged should be deleted.

The statement reads in part: “It is recommended that aggrieved party should pay the sum that is not being disputed (i.e. the amount paid as Land Use Charge in the preceding year) while the matter is resolved.

“An aggrieved party should be at liberty to appeal against a decision of the Tribunal to the Federal High Court or High Court of Lagos State, depending on the cause of action.

“We propose that the provision should be amended to read: “An appeal against a decision of the Tribunal may be made to the Federal High Court or High Court of Lagos State.

On Sanctions/Penalties – Section 22 (1) (a), (b), (c) & (2):
“…the charges payable shall be increased by the following percentage: Between 45 calendar days and 75 calendar days – 25% (reduce to 12%), Between 75 calendar days and 105 calendar days – 50% (reduce to 20%), Between 105 calendar days and 135 calendar days – 100% (reduced to 40%).”

They added that 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 of its appointed agent…”.


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