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Tag: Land Use Charge

  • Court certifies suit on Land Use Charge as class action

    A Lagos State High Court has certified a suit filed by a resident, Owolabi Rotimi, against the state, challenging the Land Use Charge (LUC) 2018, as a class action.

    Justice B. Oke-Lawal granted an order certifying the suit as a class action for the applicant and “all other recipients of the annual bill for Land Use Charge 2018 issued by the Lagos State government.”

    The judge made an order appointing the applicant to represent members of the class of LUC recipients.

    Justice Oke-Lawal held: “Having considered the facts as stated in the affidavit, the class of persons having an interest cannot be ascertained and found for now.

    “Several Nigerians will be affected by the decision on the Land Use Act and it will, therefore, be an expedient and efficient procedure to have claims of all persons taken in one suit than multiplicity of suits.

    “I am, therefore, satisfied that the applicant can be appointed to sue on behalf of the entire class of persons who are recipients of annual bill for Land Use Charge 2018 issued by the Lagos State government.

    “I, therefore, find merit in the application and the motion is granted as prayed.

    “I, hereby, certify this suit as a class action and appoint the claimant to represent the class as per the prayer in his motion.”

    Rotimi, through his lawyer, Mr. Olumide Babalola, had filed an ex-parte application seeking leave to represent himself and other recipients of the LUC a class action.

    In a supporting affidavit, the applicant, who said he was the owner/occupier of 13, Ina Abasi Street, Ogudu, GRA, Lagos, argued that class action would prevent a multiplicity of suits on the same issue.

    He said sometime in February, he was served with a Land Use Charge Bill/Notice dated April 27, 2018 for the sum of N227, 435.55 for the period of January 1 to December 31, 2018.

    According to him, on the face of the bill, the assessment consisted of tenement rate and ground rent.

    The applicant said constitutionally, tenement rate ought to be assessed, levied and collected by local governments as opposed to the state government.

    He contended that the ground rent and tenement rate constituted double taxation.

    Rotimi said he approached the court because he did not want to be a part of illegality and unconstitutionality of paying tenement rate to the wrong entity.

    “The applicant believes that numerous unascertainable owners and occupiers are interested and affected by the reliefs sought by the applicant in this suit.

    “Numerous persons have been served with the same kind of bill/notice served on the applicant and they cannot be found or ascertained as at the time of this suit.

    “This suit borders on the provision of the Land Use Charge Law 2018 and the Constitution of the Federal Republic of Nigeria, 1999 (as amended)

    “It is expedient and efficient procedure for this honourable court to grant this application, otherwise this honourable court will be inundated with numerous suits bordering on same subject matter by members of the applicant’s class,” the applicant said.

    According to him, his lawyer had been briefed by three different parties on the Land Use Charge already and more may follow.

    “The applicant believes that his suit is not about the amounts payable in the bills/notices which varies, but the constituents (ground rent + tenement rate) and the collector (Lagos State government), which is uniform to all the bills/notices.

    “It is expedient that this application be granted to avoid multiplicity of suit and/or conflicting decisions of courts on the issues raised herein,” Rotimi added.

    After granting the order, Justice Oke-Lawal said the enrolled order should be served personally on the defendant by the court’s sheriff.

     

  • ‘Private schools should not pay Land Use charge’

    The National Association of Proprietors of Private Schools (NAPPS), Lagos State chapter, wants the Lagos State government to exempt its members from paying the Land Use charge.

    Its President, Alhaji Wasiu Olaitan Adumadeyi, said in an interview that the body had presented its request for exemption to the Lagos State House of Assembly.

    He argued that private school  deserved to be exempted because they provide a social service to the society.

    “We want the government to see private schools as offering a social service and they are not supposed to be paying sundry expenses like taxes,” he said.

    Adumadeyi said contrary to the belief that schools make profit, they actually make enough to operate as they are not purposely established for profiteering.

    He urged the Nigerian government to emulate foreign countries like Canada that fund private education.

    “What we are making is what will help to run the organization and pay bills.  In Canada private schools are given subventions and grants and they are not taxed.

    “If some other countries can do that, it is not too much for its to ask for exemption.  We are not asking for exemption from income tax and annual dues. We pay those,” he said.

    Adumadeyi nevertheless praised the Lagos State government’s language policy, saying the association was adapting Wednesday as its local language day.

    However, the NAPPS President expressed concern about dearth of Yoruba teachers, urging the government to address the issue.

    “When we met the Deputy Governor we advocated that teacher education should be encouraged. The major area we have problem is Yoruba teachers because people don’t go to study those courses again.  We have told the Deputy Governor that government should enact a policy that will encourage students to go and study those courses that are lacking in the teaching profession,” he said.

    Giving a scorecard of his achievements six months after his inauguration (December 8, 2017), Adumadeyi said his team of executives had re-united warring factions; organized regular central working committee meetings; conducted unified examinations; set up an elders’ council made up of elderly NAPPS members to provide advice; inaugurated boards/committees like inter-governmental/disciplinary committee etc to address specific issues; earmarked funds for construction of NAPPS secretariat; among others.

    Regarding the secretariat, Adumadeyi said in six month they had set aside N6 million raised from programmes organised by the association.

    Attesting to the quality of the unified examination, Adumadeyi said NAPPS now offered schools better means of assessment at an even cheaper rate.

    “Our vision is to have our private schools operating a very high standard.  And this was why came up with the unified exams so that private schools in Lagos State will do one single exam.  The advantage of this is instead of individual schools doing their pockets of exams, we bring about one standard exam that is to be set by professionals; and examined by professionals.

    “We had this exam last term and it was very successful.  Even though we did not have 100 per cent participation, we had a high percentage of schools coming in to do this exam.  This exam has been adjudged as a better examination for private schools – even economically it becomes cheaper for the schools because of the large production,” he said.

  • NAPPS seeks exemption from Land Use Charge

    National Association of Proprietors of Private Schools (NAPPS), Lagos State chapter President Alhaji  Wasiu Adumadeyin has called for the exemption of the Land Use Charge on private schools in the state.

    Adumadeyin spoke in Lagos during the swearing in of the 12 new executives of the Somolu chapter of NAPPS, who were elected to serve for two years.

    Adumadeyin said NAPPS has  made a case against the charge, adding that the group also went further by presenting a paper to the National Assembly on its position.

    “The government should exempt  private schools from all expenses, because education is a social service to humanity and not a business venture. If the government keeps on levying private schools, the school will become a financial burden to the parents most of who are at financially challenged owing to the economic depression.

    “The government would not be encouraging education, if they continue to put different levies on the private schools. Most private schools exist because they are interested in providing social service and quality education to the mases. The government should therefore not squeeze them by its different tariff and levies.”

    He urged the new executives to keep on the good works, while admonishing members to support them.

    Private schools should not pay for the Land Use Charge. We are partners in progress; we are assisting the government in the education sector and we are also employing people.  The effect of all these payments put on us would be on the parents, as we

  • Lawyers to engage Lagos on Land Use Charge

    The Lagos Branch of the Nigerian Bar Association (NBA) will engage with the state government on the Land Use Charge during the association’s Law Week, its Chairman, Mr Chukwuka Ikwuazom, has said.

    According to him, the forum will provide an opportunity for dialogue.

    He said: “Lawyers have complained about challenges they encounter when they go to register title in Lagos, that there are issues around personal income taxation.

    “So, we’ve made an offer to the Lagos State government to allocate between 30 to 45 minutes to the government to come and engage with members.

    “On the Land Use charge, at our last branch meeting, we had someone come to talk to us about it. One of the things that came out of that engagement was the need for further engagement. That was what further informed our decision to give them the opportunity to be part of the law week.”

    The branch said it would visit the Ikoyi and Kirikiri prisons to show support for inmates as part of activities for the 2018 Law week.

    The Law Week Planning Committee Chairman, Mr Tola Oshobi (SAN), told reporters in Lagos that the prison visitation was aimed at making provisions for the inmates to help improve their quality of lives.

    The theme is: Human capital and the legal profession in the 21st Century. It will hold from May 5 to May 11.

    Oshobi said apart from the prisons visit, the week also include sessions such as health walk, health screening, registration of lawyers for the National Identity Card, technical sessions and a forum for the young lawyers.

    On the prisons visit, Oshobi said: “We will be giving out some gift items to the inmates and make legal representations to some of them, where necessary,”

    He said if the NBA found reasons to make recommendations to the Chief Judge, the Attorney-General or the prison authorities, it would do so as part of ways to aid in prison decongestion.

    Also, NBA Lagos Chairman, Mr Chukwuka Ikwuazom, said the various sessions would be anchored by versatile lawyers in Lagos, while there would be a social event for the older lawyers in the NBA.

    “The human right arm of the NBA ensures provisions of free legal services for indigent prisons inmates, as this year’s law week celebration was a slight deviation from the previous years’ activities.,’’ Ikwuazom said.

    He said some of the dignitaries expected at the event include judges, senior lawyers and some legal luminaries from   some international bodies.

    On the Bar/Bench forum, Ikwuazom said: “We want to discuss the peculiar issues that have come out of the National Industrial Court. We’ll continue to interact with the leadership of the Bench. Not too long we had the Bar/Bench forum.

    “But for the purposes of the Law week, we’re focusing specifically on Labour issues. There’s a sense among employers of Labour that the National Industrial Court has been established to only take care of employees and that its decisions are anti-employers.

    “So it’s those types of issues that we want to have conversations around. Labour matters are extremely important.”

    The NBA chair said the association takes the issue of professional ethics seriously even if it was not listed for discussion at the event.

    “We have a Disciplinary and Ethics Committee of the branch. One of the innovations we brought is the knowledge sharing sessions as part of our monthly meetings.

    “We bring people to address subjects of importance to our members. Ethics was discussed in February. So while we may not accommodate ethics during the Law week, we understand the importance of the subject and we’ll continue to sensitise our people about it even outside the Law week event,” Ikwuazom said.

  • Land use charge: NBA Ikeja to welcome Buhari with protest

    The Nigerian Bar Association (NBA), Ikeja Branch, has restated its resolve to embark on another round of protest on March 29 over the reviewed Lagos Land Use Charge.

    The NBA Chairman, Mr Adeshina Ogunlana, said at a media briefing on Wednesday that in spite of the reduction of the rates and levies under the Land Use Charge the protest would go on as planned.

    The News Agency of Nigeria (NAN) reports that President Muhammadu Buhari is scheduled to arrive in Lagos tomorrow on a two-day state visit.

    Lagos State Government has declared tomorrow (March 29) as public holiday in honour of the president.

    Gov. Akinwunmi Ambode had earlier reduced the levies by 50 per cent following a  protest  that greeted the Land Use Charge, but the reduction did not go down well with some stakeholders who insisted the LUC returns to status quo.

    A public hearing on the Lagos Land Use Charge organised by the Lagos State House of Assembly on March 27 had turned rowdy as Ogunlana led lawyers in a walk-out, insisting that the notice to submit their memorandum was too short.

    Ogunlana said: “The protest is far from being over as lawyers have declared their intention to embark on another round of streets protest tomorrow (March 29).”

    The NBA chairman said that the protest was a response to “failure” of the state government and State House of Assembly to meet their demands.

    He, however, warned some members of the public who, he said, were peddling negative rumours against the NBA to desist from it.

    NAN also reports that the NBA had on March 13 staged a protest tagged, ” Walk The Talk” to reject the 50 percent reduction of the levies.

    The Nigeria Labour Congress (NLC), civil society bodies and professionals had in solidarity joined the protest.

    Others are the Committee for Defence of Human Rights (CDHR), Joint Action Front (JAF) Medical Doctors Association the Human and Environmental Agenda (HEDA)

    The protest was meant to kick against the Land Use Charge Law 2018, excessive litigation cost, borehole tax and car registration tax.

    Ogunlana said : “The reduction is a sham and a calculated ploy to hoodwink the people of Lagos State.”

    He also said the NBA objected to the House of Assembly’s setting up of a committee to review the Land Use Charge 2018.

    “Come Thursday, March 29, the “Walk the Talk” protest must go on irrespective of the public holiday declared by the Lagos State Government in anticipation for the Presidential visit.”  (NAN)

  • Land Use Charge: Tax revenue crucial for development

    The controversy over the reviewed Land Use Charge in Lagos State seems to have subsided. But what remains unchanged is that Lagos needs revenue to continue to deliver service to the people sustainably. Tax revenue is not only essential, but would enable the state to depend less on borrowed funds and bond issuances in realising its infrastructure, economic empowerment and security goals, writes COLLINS NWEZE.

    Tax is a legal instrument used in every society to achieve service delivery. It is a civic responsibility, and incumbent on every taxable individual and organisation to contribute to building the commonwealth.

    The recently-reviewed Land Use Charge Law in Lagos State has pitted the government against a section of the people, mostly the organised private sector, with some suggesting that the administration may have lost its goodwill with the citizenry.

    Yet, if one must be dispassionate, there is no doubt that the government needs to boost its revenue to continue to deliver service on a sustainable basis.

    A Lagos-based tax expert, Seun Olamilekan, said the Lagos State government had mainly relied on borrowed funds and bond issuance to transform the city, which is not sustainable in the long term, because the facilities are interest bearing and must be paid back.

    For instance, the recent debt figure released by the Debt Management Office (DMO) showed that Lagos has a domestic debt overhang of N533.6 billion. With federal allocation declining, it is clear that the government must be efficient in its tax revenue drive. For efficiency, effectiveness, and relevance it became expedient to reform the tax system, which the state government is doing.

    According to the government, rather than short-term thinking of political gains, it is determined to leave a legacy of prosperity for all and a functional Lagos, one that every resident will be proud of. So, it is ready to do what is right, even at the expense of its political health.

    It is unfortunate though that Lagosians have yet to fully appreciate the necessity of tax reforms and the engendering of a progressive tax system. In a show of good faith, however, and in consideration of the economic situation, several reliefs were built into the Land Use Charge law and the state government promised to continue to dialogue with all segments of society to find an agreeable rate. Following extensive dialogue and true to its promise, a further set of reductions to the Land Use Charge were introduced to the tune of 50 per cent for commercial properties.

    The Land Use Charge controversy may yet be a long road to travel, but the government’s single-mindedness and integrity may gradually be registering on Lagosians. Only recently, the Nigerian Institution of Estate Surveyors and Valuers (NIESV), Lagos State chapter, which had earlier opposed the law, pledged support for the revised Land Use Charge law.

    While Lagosians gradually come to terms with the new Land Use Charge law, they can hardly deny that the Ambode government has done well and would need to be supported through the exercise of their civic responsibility of tax payment if the Lagos of everybody’s dream must be achieved now and not tomorrow, because, really, tomorrow never comes.

    Governor Akinwunmi Ambode was faced with fixing the inefficient tax system in the state, which could be wrongly interpreted by the populace, thereby jeopardising his political future or consolidating his political goodwill by pretending all was well with the clearly obsolete and inefficient tax system. The governor chose the harder and rougher road towards consolidating his legacy.

    Olamilekan said the state government has over the past three years managed to build an unusual rapport with the people.

    “Unusual because what has, unfortunately, become the norm rather than being the exception is that there is often a wide chasm separating the governed from the government. As a result, many governments, whether federal, state or local, struggle to gain the sympathy and trust of citizens, which makes policy implementation and other government initiatives sometimes difficult to achieve or appreciate,” he said.

    According to him, the Ambode-led government, it would seem, has managed to bridge that invisible but ever present disconnect between the ruled and the ruler in the country. Such trust is no doubt built on noticeable and people-friendly policies and initiatives, which is not in short supply in the Ambode administration. Coupled with the mass-oriented developmental agenda of the administration is a commendable predisposition to empathise with and listen to the people and draw insights with which to further develop the state and make it livable for residents.

    The administration had stated it planned to focus attention on infrastructure, economic empowerment, and security. And so far, it has covered much ground in the delivery of value in these areas.

    Analysts said housing remains a huge challenge in Lagos; the housing deficit is put at 2.5 million units. To address this, the government embarked on massive construction of affordable housing estates. More than 27 low- to mid-income housing estates are under construction/redevelopment or completed and assigned across the state in Mushin, Oko-Oba, Igbogbo, Ojo/Igando, Lekki, Sangotedo, Ikota, Ojokoro, Ogba, etc. Often, such housing schemes are hijacked and acquired by speculators and real estate investors, which effectively defeats their purpose.

    As part of its economic empowerment commitments, the government budgets N6.25 billion yearly to its N25 billion Lagos State Employment Trust Fund, targeted at supporting about 100,000 micro, small and medium enterprises and creating at least 300,000 direct and 600,000 indirect jobs by 2019. So far, more than 5,893 businesses have been given about N5 billion. This year, over N700 million has been approved for 1,753 beneficiaries.

    Perhaps the most noticeable and appreciated intervention of the Ambode administration has been its road infrastructure projects because that affect all strata of society. Commuting in Lagos in the past was very challenging. Commuters spent an average of four hours in traffic daily on most routes due to bad roads, poor road networks/management, and inadequate alternate routes, among others. That had serious implications for productivity and the well-being of Lagosians. But through road expansions and maintenance, opening up of alternate routes, construction of lay-bys, bus stops, interchanges, and pedestrian bridges, commuting within the metropolis has improved tremendously.

    In demonstration of strategic thinking, usually associated with the private sector, the Ambode administration, determined to boost food production in the state, collaborated with the Kebbi State government to produce and market food items such as rice, sorghum, wheat, groundnut, and livestock at subsidised rates, starting with rice.

    Expectedly, people have warmed to the administration and it has enjoyed tremendous goodwill among the residents and even outsiders. Last year, the Federal House of Representatives Committee on Basic Education and other Services, led by its Chairman, Zakari Muhammed, on tour of projects executed under the State Universal Basic Education Projects (SUBEB) across the country, lauded the government for “embarking on schools infrastructure projects that are impacting positively on the delivery of quality education in the state,” and expressed satisfaction with the “quality of materials used in most of the schools visited.”

  • Land Use Charge as tool for development

    States in Nigeria can no longer depend solely on income from petroleum products because of the fall in sales price of this national income-earner and the continuous discovery of numerous alternatives to petroleum products as sources of energy which means that federal allocation will continue to dwindle. Real estate sector is a veritable tool for economic development of nations – developing and developed and Nigeria is in economic turbulence due to inefficiency of governments to explore real estate sector, lack of human capacity to efficiently manage real estate opportunities and over-dependence of government on oil and gas incomes, natural resources and personal and corporate taxes.

    Property taxation, which is part of real estate opportunities of income generation, must take into consideration the Canons of Taxation as propounded by Adam Smith in his famous book “The Wealth of a Nation”, which stated that property taxes must be equitable, certain, convenient and economical. Five more canons of productivity, elasticity, simplicity, diversity and desirability or expediency were later added by other economists.

    Real estate is a sure sector of income generation for states. Real estate is defined as landed property, land, buildings, air rights above the land and underground rights below the land. The term real estate means real, or physical, property. Real came from the Latin word ‘res’, meaning ‘things’. Others claim it was from the Latin word ‘rex’, meaning ‘royal’ since kings owned all land in the past. Real estate sector is the sector of the economy that caters for the physical infrastructure development and management like building, bridge, dams, roads, railways, waste management etc. There are different types of real estate. These are: residential, industrial, commercial, agricultural, transportation, recreation, tourism, educational, medical, sports etc. Nigeria, as a country, is a piece of real estate.

    The primary aim of any government is to provide enabling environment for the people through ensuring that there is adequate security, giving hope to the downtrodden and providing succour to the vulnerable. Government is the body that is constituted or put in place by the people to provide a level playing ground for every resident. Thus, the primary purpose of government is to make sure everybody can live safely and comfortably, irrespective of class, without molestation and oppression by a third party (The Constitution of the Federal Republic of Nigeria 1999, Chapter 2, Section 14, Sub-section 2b).

    It is therefore, not out of tune, for governments all over the world, to control the land-based resources of the states and manage them effectively for the benefits of the generality of the people. One of the raisons d’être for the formation of governments is poverty reduction and this is because urbanization, modernism and globalism which are daily occurrence in the world, bring with them the negative feature of widening the rich and the poor gap. It is this steadfast widening gap between the rich and the poor that is called ‘relative poverty’. Abject poverty affects those that live on less than one dollar a day, according to United Nations Organisation (UNO) and it is ravaging Africa. Poor Relief Act 1601 (Elizabethan Act), which aimed to bridge the gap between the poor and the rich, led to land-based taxes. The Poor Relief Act 1601 was an Act of the Parliament of England. The Act for the Relief of the Poor 1601, popularly known as the Elizabethan Poor Law, created a poor law system for England and Wales.

    Different types of property taxes are available in Nigeria and the benefits of efficient land-based tax management cannot be over-emphasised. Land-based taxes management is still rudimentary in Nigeria. There are over 15 potential land-based taxes that can be exploited in Nigeria, using Global Best Practices including tenement rate, development levy, neighbourhood tax, withholding tax, capital gain (appreciation) tax, capital transfer tax, waste management tax, consent fee, building approval charge, building alteration levy, inheritance tax etc. High dependence on oil as income generator, lawlessness in the high places, lack of enforcement of laws, low capacity building for land-based tax management and the high level of corruption in the country account for the low patronage of land-based taxes.

    It is the prerogative of the governments to charge land-based taxes and to determine how they want to determine the amount to pay, when to pay and who to pay. The majority of U.S. cities apply a singular tax rate to both the land and the buildings. In the Pennsylvania cities like Pittsburg, Harrisburg and Scranton, split rate property tax is applied and the land is taxed higher than the property on it. This is practiced so that land speculators will not just buy land and sit on it. In Nigeria, vacant lands are not charged or levied thereby creating room for speculation. The various ways in which land resources are controlled and/or managed by governments include: (i) Power of Eminent Domain (Chapter 4, Section 44, Sub-section 1 and 2 (a) to (m) of Nigerian 1999 Constitution). This is the power of the government to take a private property and convert it into public use, (ii) Consent and Development Approval on the use of land by the governor or his or her representative/s mostly Governor’s office and Ministry of Land, Planning and Physical Development, (iii) Planning Laws including Development and Building Control Laws and (iv) Land-based and Property charges, levies, taxes, rents and rates.

    Land Use Charge is the consolidation of some (not all) property and land-based rents, levies, rates, taxes and charges payable under various land-based and property laws such as Land Rates Laws (Land Use Act 1978, Chapter L5, Laws of the Federation of Nigeria 2004, Part II, Section 10 (a) and (b) Tenement Rates Law (the Local Government Act of 1976). Aside this Land Use Charge, inheritance tax at 10 per cent of the capital value of the property to be inherited will still be paid to the Probate Registry of state high courts for the purpose of procuring “Letter of Administration” from the governor or else, the management of the property by the heirs or administrators or successors-in-title becomes illegal. In some countries, capital transfer tax is 40 per cent of the capital value of property to be inherited.

    Land Use Charge is a global best practice in property taxation in which some of the land-based and property taxes, charges and rates like ground rent, neighbourhood improvement levy, tenement rate etc are consolidated, billed and collected as a one-off charge for ease of payment by property owners. This is based on the fact that it will be cheaper and easier to charge some related and annual property and land-based rents, rates and levies together and shared between the concerned stakeholders (state and local governments). In Scotland, United Kingdom, this Land Use Charge plus waste management levy, water rate and security tax is called Council Tax. The monthly charge is as high as monthly rent and is payable by the occupier of the house and not the owner. Land Use Charge’s efficient administration is a good way of generating employment and income for some people who are in charge of determination of amount due, collection and punishing defaulters.

    The Nigeria constitution makes each local government the collecting authority of tenement rate within its territory. However, section 1(3) provides that each local government may, by written agreement, delegate the collection of rates and assessment of privately owned houses or tenement to the state. See Knight Frank &Rutleyvs A.G. of Kano State [1990] 4 NWLR (Pt.143) 210″. The consolidation of these taxes and rents by a single authority makes it efficient, effective and economical for the government to collect and property owners to pay their bills. Every land-based and property charge, rate and rent law envisage that there will be defaulters and clearly states penalties. Land Use Charge is an unavoidable tool of poverty reduction, income generation and infrastructure development.

    The Lagos State government has all rights to charge property taxes and the imbroglio that the 2018 review of charges caused was as a result of the high tax burden on the people. Real estate covers a wide array of areas and is the surest tool of economic development. Lagos State government should put in place measures that will make it possible to collect land use charge from as many payers as possible as the current payment rate of less than 10 percent is discriminatory. Government must engage professional Estate Surveyors and Valuers to determine property values because value determination is not only a science, but also an art, and to efficiently explore income opportunities in the real estate sector for the government.

     

    • Oyedele, MPhil., ANIVS, RSV, is an Estate Surveyor and Valuer based in Osogbo.

     

  • Land Use Charge: Real estate chiefs laud 50% reduction

    Through their local chapters in Lagos, major players in the real estate sector have lauded the slashing of the Land Use Charge  rates by the state government.

    It was at a stakeholders’ meeting at Protea Hotels in Ikeja

    The chairman of the Nigerian Institution of Estate Surveyors & Valuers (NIESV) in Lagos, Olurogba Orimalade hailed Governor Akinwunmi Ambode for slashing the Land Use Charge (LUC) rate for commercial properties by 50 per cent and other categories of property owners.  Orimalade described the Ambode administration as a listening government, pledging his institution’s support for the revised law and other progressive decisions taken by the state government.

    The NIESV chair said: “We are committed to working with the present Lagos State administration to make the law succeed. We have set up a technical committee to come up in 10 days with directions, recommendations and position of the institution on the law in order to collaborate with the government for a better society.”

    Also speaking, the Vice President of the Nigeria Institute of Architects, Ifeoma George said: “This is a listening government. We propose that stakeholders should continue to be carried along in all government dealings, going forward.”

    The Commissioner for Finance, Mr. Akinyemi Ashade, listed other reliefs contained in the amended LUC Law.

    He assured of the government’s readiness for further discussions on how to solve the challenges plaguing infrastructural financing and investments in the Centre of Excellence.

    Ashade restated that the government has waved the penalty for late payment as earlier stipulated.

    According to him, the amended law is a property tax that has rolled the tenement rate, neighbourhood improvement rate and ground rent into one.

    Apart from commercial properties, other properties occupied by owners and a third party for commercial purposes will now enjoy 25 per cent discount, Ashade told his audience.

    The commissioner also said a wholly owner-occupied property will get an additional 15 per cent discount, restating that the other reliefs listed at the inception of the amended law remain valid.

    The reliefs include: 40 per cent general relief across board, meaning that whatever is the value of the property, 40 per cent will be deducted and the charge will only be calculated on the remaining 60 per cent.

    For citizens above 70 years Persons Living With Disabilities (PLWD), there is an additional 10 per cent discount and properties that are 25 years old and above will also enjoy another 10 per cent discount.

    The commissioner said payments could be staggered across the year to soothe the economic convenience of the payer.

    Ashade said self-assessment of property would be encouraged to help individuals calculate their charges appropriately, adding that property owners would be allowed to use their independent estate valuers to assess their property and bring any discrepancy to the government for reconciliation.

    The state government, he added, would entertain discussions and be willing to dialogue on the LUC Law,  or any other policy.

    Other stakeholders at the parley were: Faculty of Estate Agency Auctioneering; International Real Estate Federation; Association of Builders & Property Developers; Association of Town Planners and Estate Agents of Nigeria.

     

  • Police vow to resist planned Land Use Charge protest

    The Lagos State Police Command has warned that any attempt to block the Third Mainland Bridge and other critical public infrastructure in protest against the Land Use Charge would be resisted.

    A statement by the command’s spokesman, Chike Oti, a Superintendent (SP), yesterday alleged that mischief makers masquerading as civil rights activists were planning to block the bridge and other critical assets.

    He said: “The command wishes to warn those concerned that attempt by any individual or group of persons to cause a breach of the peace or infringe on the rights of others to pursue their daily aspirations, would be met with stiff resistance.

    “As it stands, the Commissioner of Police has not received a single application from any group wishing to carry out protest in any part of the state.

    “It is therefore advised that these individuals wanting to protest government’s decision should consult with the police as was the case with the Nigerian Bar Association (NBA) before they carried out their very peaceful protest for which the police provided the needed security and ensured it was not hijacked by hoodlums.

    “The command would not allow any group of protesters to compromise the peace in Lagos State in whatever guise. Any group of persons that feel strongly against any policy of the government should explore the judiciary option instead of endangering public peace.”

  • Stakeholders react to revised Land Use Charge

    The Lagos State government last Thursday bowed to pressure as it announced revised rate initially pegged for the Lagos State Land Use Charge (LUC) Law. Laudable as the state government decision is, like Olive Twist, stakeholders who have raised their voices above the din would rather the government give more concessions. Ibrahim Apekhade Yusuf in this report, examines all sides of the argument

    One policy that raised so much dust in the last couple of weeks, for obvious reason, is the Lagos State Land Use Charge (LUC) Law recently reviewed by the state. Since the bill was signed into law on February 8, 2018 by Governor Akinwunmi Ambode and launched on the 19th, it has received varied opinions and criticisms from property owners and other stakeholders in the state.

    Stakeholders make case for review of LUC

    Apparently worried by rippled negative effective of the LUC policy on the psyche of populace, many interested parties demanded a rethink of the policy.

    One of such stakeholders like the Nigerian Institution of Estate Surveyors and Valuers, Lagos Branch, had suggested that the LUC 2018 should be anchored on the basic principles of taxation, as this would ensure fairness, particularly from the taxpayers’ point of view.

    The Chairman, NIESV Lagos branch, Mr. Rogba Orimalade, stated that the institution, out of concern for the citizens, had studied the law, the methods, basis applied and the likely impact, and was worried that property values had been adjusted upwards without valuation.

    At a stakeholders’ dialogue forum organised by the Lagos Chamber of Commerce and Industry to discuss the LUC, representatives of the state government, property owners, estate developers and members of the organised private sector were divided on the provisions of the law.

    The President of the LCCI, Mr. Babatunde Ruwase, said the country’s economic situation would not accommodate additional taxes for taxpayers.

    Ruwase requested that the implementation of the new LUC law be put on hold because of the stakeholders’ complaints, while the grey areas were sorted out, adding that some key provisions in the law should be normalised in the interest of fairness, equity and natural justice.

    Finally, government bows to pressure

    In keeping with Governor Ambode’s promise of continuous dialogue and engagement with the stakeholders, the state government last Thursday announced a major reduction in the new rates payable by property owners under the LUC Law.

    Besides, the government waived the penalty for late payments across board.

    Speaking at a press briefing at Bagauda Kaltho Press Centre in Alausa on the outcome of dialogue with stakeholders, the Commissioner for Finance, Akinyemi Ashade, said the rates payable on commercial properties have been reduced by 50 per cent in response to the demands of the people.

    The commissioner said the government took the decision following extensive deliberations with stakeholders on the new rates.

    He said the government has also reduced the charges for owner-occupier with third party including industries and manufacturing concerns by 25 per cent, while tax credits has been given for LUC charges already paid in addition to introduction of instalment payment system.

    The volte face had a lot to do with the pressure from individuals, pressure groups and civil society organisations, many of who stood pat with the state government.

    According to Mr. Ashade, the decision to reduce the rates was taken at the weekly council meeting held on Wednesday and chaired by Governor Ambode.

    “The Lagos State Government, in its desire to build world class infrastructure and improve the well-being of its citizens reviewed the Land Use Charges payable by all property owners. This exercise was received with mixed feelings by various interest groups who expressed serious concerns,” he said.

    “In line with this administration’s tradition of inclusive governance and civic engagement, and as a government that is committed to the welfare of its citizens and understands the importance of continuously engaging the populace, we undertook extensive dialogue with various stakeholders on the Land Use Charge (“LUC”) revised Law and its implementation.

    “Consequently, we received a wide range of responses from our dialogue with various stakeholders on the amended LUC Law 2018.

    “The stakeholders included the Organised Private Sector, Nigeria Bar Association, Real estate investors & developers, Landlord & Resident Associations, Community Development Associations, Civil Society Organisations, Lagos Chamber of Commerce and Industries (LCCI), Nigeria Institute of Estate Surveyors & Valuers and several other professional groups.”

    Giving a breakdown of the reduction, Mr. Ashade said for commercial property owners who were mostly affected by the amended law, a property valued at N20 million for instance which was earlier billed N91,200 will now pay N45,600 per annum as a result of the 50 per cent discount, while property occupied by owner, third party and property used for industrial and manufacturing purposes will now pay N23,040 per annum on a property valued at N20 million as against the earlier N30,720 based on the 25 per cent discount.

    On owner-occupied property, the commissioner explained that for a property valued at N20 million, only N7,752 will now be paid per annum as against N9,120 earlier demanded based on 15 per cent discount.

    He said, “Other rates and reliefs, apart from the ones stated above, will remain unchanged and will be implemented as stipulated by the Law.

    “These include 40 per cent general relief, 10 per cent for 70 years and above, 10 per cent for properties owned by persons living with disability and 10 per cent for properties that are 25 years old and so on and so forth. Owners of property across all categories will now be allowed to make payments by instalments. This will help to reduce the burden of taxation on our citizens.

    “We appreciate and commend property owners of all categories who have performed their civic duties faithfully by paying the LUC. Consequently, as a result of these new measures, those who have paid the original amount will be awarded tax credits to the extent of the excess amount paid and carried forward to next year.”

    The commissioner said the reduction would be implemented immediately as there were provisions within the LUC law which empowered the government to carry out necessary adjustment to cushion the effect of implementation.

    In his reaction, Attorney General and Commissioner for Justice, Adeniji Kazeem, said under the amended law, there is provision for establishment of five tribunals out of which one has been created in Ikeja and now operational, while the remaining four would be established in other administrative divisions of the State in Epe, Badagry, Ikorodu and Lagos Island.

    He said the law also makes provision for aggrieved tax payers to ventilate their grievances within 45 days through a mediation process, adding that so far over 80 cases have been resolved through mediation.

    Relief not enough, OPS insist

    Speaking with stakeholders drawn from a diverse group of professionals, they said the relief so far granted by the state government was not enough.

    Firing the first salvo, the Director-General of the Nigeria Employer Consultative Forum (NECA) Mr. Olusegun Oshinowo, while acknowledging the fact that the state government made some shift, however said it merely scratched the surface.

    In a telephone chat with our correspondent at the weekend, he said, “The point is that the relief being granted, which is a mere reduction of 50 per dent in the demand notice is not enough. The reality is that it just scratches the surface. This is not what we are asking for. It doesn’t meet the expectation of our collective agonies. We have formally informed them that this is not what we are asking for. It doesn’t meet the expectations in any way.” 

    The state government, he insisted, must be ready to give further concessions for the policy to see the light of day.

    “They must look at the fundamentals. And what are the fundamentals? The remaining 50 per cent must be reduced significantly downward and then the assets market value also should be toned down. Those are the fundamentals, not the token 50 per cent they have done. The 50 percent simply amounts to tokenism. And the way things are going, we encourage them to embrace constructive dialogue rather the unilateral approach they are adopting because the unilaterally this will not resolve the crisis,” he stressed.

    “We have also advised them that dialogue is the only way they should go about it so that they don’t compel people to go to court to achieve suspension of the mission. So to the OPS, this is not acceptable, it is malicious. And we ask government to address the fundamentals. In fact, what I’m telling you, we have already communicated our position to the government today (Friday). We have since conveyed pour position formally to them. This is a serious issue. You can’t tell those who are supposed to pay 100 per cent increase, to now accept 50 per cent reduction on the demand notice. It just scratching the surface, it doesn’t amount to anything as far as we are concerned.”

    More discordant tunes

    In a statement issued by the Socialist Party of Nigeria (SPN) and signed by Rufus Olusesan, Monsuru Soyombo, and made available to The Nation, the group described the reduction as a smokescreen.

    In the statement which reads in part, the body it is not persuaded that the state government means well for the masses.

    “We are not swayed by the purported reduction of the charges which is a well-worn tactic to deceive the masses to believing that the government has shifted ground while it has actually settled for the originally intended figure. The masses have experienced similar tactics many times with different hikes in fuel price,” the statement said.

    “We strongly hold that the Lagos State Government does not have moral basis to impose any new tax on the people having not accounted for how the state revenue realized from the previous taxes has been spent.  Yes, it is true that the state government has embarked on a few infrastructural projects, but there is utter lack of accountability and transparency in those projects as Lagosians do not know their cost.

    “We are aware that all the attempts by media and civil society organisations to know the costs of the projects are rebuffed. This can only mean that the costs of the projects are criminally inflated. It also suggests that the real intention behind those projects is not necessarily for public good but creating a conduit for looting of the state resources. Besides, the entire state budget is treated as a classified document while procurement process is kept as a state secret. This is not only undemocratic but also fraudulent. This is why we see the increase as a means of maintaining opulent lifestyles of political office holders both past and present.”

    The group which called for repeal of the law said the justification by Governor Ambode that the tax increase is needed in order to finance infrastructures, is not completely true.

    “We believe that the current revenue of the state if judiciously and democratically managed can largely finance not only provision of physical infrastructures such as roads, railways and waterways but also quality education, health care and decent housing.”

    The group would rather all political office holders to be placed on the salary structure of civil servants and the cancellation of criminal life pension and severance pays for former governors and other political office holders.  “We also call for public works department to be well equipped and staff well trained such that they can execute any construction work and not just reduced to patching of bad portions of the road. Also importantly, all projects must be put under democratic control of elected representatives of workers, community people and relevant interest groups.  All these the SPN will implement if we are in the government of Lagos.”