The Lagos State Land Use Charge (LUC) is a consolidation of all property and land based rates and charges payable under Lands Rates, Neighborhood Improvement Charge and Tenement Rates Laws of Lagos State. The Land Use Charge derives its legitimacy from the Land Use Charge Law No. 11, of 2001. It was designed to help the government generate additional revenue needed to develop the state in the light of increasing demand for provision of urban and rural infrastructure and other expenditure.
However, the implementation and enforcement of the land use charge have continued to raise dust. The modus operandi of the law has generated controversies over the years and some residents of Lagos are still confused as to what the land use charge is really about. The LUC law does not apply to all properties in the State. Properties that are exempted from the operation of the law are government-owned properties, and other properties used for public, religious and charitable activities. However, this exemption will only be granted where an application for exemption is made to the State Commissioner for Finance.

1 What is Land Use Charge?
• Land Use Charge (“LUC”) is a Lagos State property tax backed by the Land Use Charge Law of 2018.
• Land use charge is a consolidation of ground rent, tenement rate, and neighbourhood improvement levy.
2 Is Land use charge a new form of tax?
• Land use charge is not a new form of tax.
• The Law backing LUC was first enacted in 2001.
3 What is LUC based on?
• Land use charge shall be payable in respect of all real estate property situated in Lagos State (“the State”).

4 What was the rationale for repealing and re-enacting the LUC Law? The LUC Law was repealed and re-enacted to address some identified challenges which include:
• Lack of clarity on the Land use charge formula to support self-assessment;
• Obsolete rates which had not been reviewed in over a decade;
• Need to improve LUC administration efficiency; etc.
• The new Land use charge Law also provides a robust legal and regulatory framework to support ongoing LUC administration reforms aimed growing the State’s economy.
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