The attendance at the public hearing on the amendment of the Lagos State Land Use Charge Law a fortnight ago at the Lagos State House of Assembly was unprecedented. According to Speaker Mudashiru Obasa the Assembly has never witnessed such a crowd at a public hearing since the inception of democracy in 1999.
Emotion, as expected from the protests that trailed the Bill since it was signed into law by Governor Akinwunmi Ambode, was too much and the views of majority of people in attendance were that the government should revert to the old rate.
However, even before the stakeholders were given opportunity to make contributions, the Nigeria Bar Association (NBA), Ikeja branch, led by its chairman Adeshina Ogunlana, broke all protocols and insisted on making submissions. He refused to listen to entreaties to wait till when it is time for that. Sensing the commotion that was about resulting because of his refusal, the speaker recognised him to speak.
His argument was that they don’t have original copy of the law that is being amended and they were not given enough notice to prepare a memorandum as it only received a 24-hour notice for the public hearing.
Essentially, the demand of the Ikeja NBA which he said was communicated to the Assembly the previous day is: “We request the adjournment of the public hearing for no less than two weeks to allow stakeholders adequate time to study the proposed amendment as well as qualitative and comprehensive submissions, via their memoranda. Pressing forward today as scheduled appears, in our view, undue haste and needless hurry and which may be counter-productive in the end.”
Even after Speaker Obasa assured him that stakeholders still have two weeks from the day of the public hearing to submit memoranda, Ogunlana staged a walk out with other members of the Association and members of the Joint Action Committee (JAC) led by its Secretary, Comrade Tunde Aremu. They went outside the hall chanting solidarity songs.
The session continued after they left with many of the stakeholders calling for a reversal to the old rates and some others asking for reduction of the rates while yet others asked for one form of adjustment or the other to the new law. Some also frowned at land use charge on vacant land; the stakeholders stated that the state government has no justification for the increment.
Former chairman of NBA Ikeja and a public analyst, Onyekachi Ubani, who said he was speaking on behalf of himself and family, hailed the state government for recanting and listening to the voice of the people by reducing the earlier rate.
He pointed out that people were not against land use charge but “they are only quarrelling with the astronomical increase, reduce it and people will comply.”
He also wondered who would determine the value of property, arguing that property owners must make inputs into the value of their property and that the percentage should be reduced.
A representative of Victoria Island and Ikoyi Residents’ Association, Mrs. Wonuola Folami said although the members have no objection to paying the charges, she, however, said the law would hurt old and retired people and all landlords because of over-valuation of properties, insensitivity of the state about the national economy, denial of access to justice and other reasons.
Speaking with reporters after staging a walkout with members of Ikeja NBA, Comrade Aremu said his group is opposed to any land use charge that is coercive, threatening that his group will continue to protest and make sure no one pays the new rate.
A representative of Lekki Residents’ Association, Olorogun James Emadoye stressed that the new law was arbitrary. He observed that the people in Lekki area of the state were being segregated against, adding that they were being punished.
“Lagos State Government should revert to the status quo on the land use charge. The state should expand the level of compliance of the rate rather than increase the rate paid by the people.
“Lagos Assembly should spend the next nine months in consultation rather than rushing the law with an amendment,” he said.
This was also supported by Mr. Oladipupo Onabanjo, an estate valuer, who cautioned that the law should not be retroactive, saying that it was signed in February, 2018 and takes effect from January.
Also, Chairman of Estate Surveyors and Valuers in Lagos State, Mr. Olurogba Orimolade faulted the way properties were being assessed, adding that this should be equivalent to the annual income of the owners.
According to Mr. Richard Olaoye, the law did not take the Nigerian Constitution into consideration. He stated that the local governments ought to be in charge of land use charge before it gets to the state government.
Another stakeholder, Mr. Babatunde Emmanuel wondered why his land use charge moved from less than N2, 000 last year to N220, 000 this year and another stakeholder also complained that his property which was valued at N18 million last year jumped to N100 million this year, wondering how justifiable that was. He said he is not against increase but that 10-15 per cent increase was reasonable not 500 per cent increase as is the case now.
A representative of residents of Apapa GRA, Paul Odeh said Apapa has been completely abandoned and that there are several vacant properties there which nobody is willing to buy, even when prices are reduced, because of the traffic situation and security challenges in that axis. He, therefore, urged that government should revert to the old land use charges “because we are not getting value for property in Apapa”.
A representative of National Association of Private Schools Owners’ Association, Mr. Joseph Idornigie urged the government to exempt private schools from land use charge. He stated that private school owners are offering social services and that parents and guardians of the children are paying taxes which would amount to double taxation if the schools should also pay taxes.
“In Nigeria, we run schools through money generated from parents and the parents pay taxes. We should abolish commercial taxes from schools as schools run social services. If the government exempts palaces from taxes, why not schools?” he queried.
Another stakeholder, Tope Alabi said the entire law is illegal and unconstitutional because it is local governments that are constitutionally empowered to collect land rates.
Chairman of Conference of Chairmen of 57 Local Councils (Conference 57), Mrs. Omolola Essien rose in defence of the state government, saying all the local councils “support the state government to collect land charges on our behalf. We have agreement on that”, she said.
Apostle Tunde Oyemade said: “Yes government is working, government needs money, but let us be patient because no condition is permanent. Revert the rate to the former position”, he said.
A memorandum from the United Action for Change stated that the land use charge has brought tears to Lagosians generally, whether property owners or otherwise. He described the law “as one of the most controversial legislations ever enacted in Lagos State which has resulted in protests from different quarters.
“The uproar trailing this piece of legislation ranges from the high rates being charged (which many find quite inconsiderate and inhuman); the validity of the rates; persons chargeable under the law to the constitutionality of the law itself,” it said.
Speaking earlier in a keynote address, Obasa, who said it was the first time he was experiencing such a large crowd at a public hearing in the House since 1999, explained that the law is all about moving the state forward and that is why contributions are needed from members of the public, adding that the House was not perfect and that is why inputs are needed from stakeholders.
Obasa, however, said it was important for the state to increase its Internally Generated Revenue (IGR) as what the state government was getting from the Federal Government was too little.
“We have appealed to the Federal Government to give the state a special status, but we have not received positive answer yet. The land use charge might appear outrageous, but we must remember our children. We have other bills, but we want you to always be part of this anytime we call on you.
“Our Governor is doing tremendously well. All the local governments feel his presence, but these don’t come free and they are not cheap. Everything depends on tax. But we must not do anything that will affect the interest of our people negatively,” he said.
Answering reporters’ questions later, Obasa said reverting to the old rate as demanded by the stakeholders may not be possible but that the House would look at all the presentations and come up with something that will be acceptable to the people.
The Majority Leader, Hon. Sanai Agunbiade, who did the overview of the bill earlier said: “As a responsive House, we have looked at the areas of conflicts which are the areas of amendments we are addressing and you have two more weeks from now to submit memoranda as your inputs.
In his welcome address earlier, the Chairman of the Adhoc Committee on Land Use Charge Amendment, Hon. Sikiru Oshinowo stated that it is the habit of the House to call a stakeholders meeting each time it is working on any bill or law.
“We have moved from megacity to smart city and we cannot do this without money. Development is not possible without financial backing, which comes through taxation.
“There were a lot of protests all over the state on land use charge and we cannot joke with your position on an issue such as this. That is why we have to dialogue,” he said.
