Lagos earns N2b from Land Use charge

Out of a projected N3 billion, the Lagos State government realized N2 billion from Land Use Charge in 2009, the Commissioner for Finance, Mr. Rotimi Oyekan, told The Nation in his office early May, 2010.

He said that the state government increased the stakes in targeted revenue when the government realized over one billion in 2008 out of a targeted revenue of N500 million from Land Use Charge.

Oyekan, who noted that property taxation has become a vital source of internally generated revenue for all governments worldwide, especially those that are urban-based, said property taxation would be pursued with greater vigour this year.

The Lagos Land Use Charge came into being by virtue of the state government’s desire to harmonise four different land charges –tenement rate, development rate, ground rents and neighbourhood improvement – into one single charge.

The state appointed Messrs Land Records Company to oversee the enumeration and collection of the property tax.

He said the enumeration and assessment of properties are ongoing in catchment areas with a view to bringing all the local government areas “on a common platform of a uniform property taxation devoid of inconsistency and complaint.”

The Commissioner enjoined all property owners who are yet to receive billing on the land use charge to continue the payment of tenement rate on their property. “Should such bill be sent in the same year subsequent to payment of the tenement rate, he is also expected to deduct the amount already paid from the amount billed and pay the balance on the Land Use Charge,” he said.

The Commissioner who claimed that the visible improvement on infrastructure helped to galvanise support for the Land Use Charge, said the Special Adviser to the Governor on Taxation and Revenue is working closely with his Ministry and the Land Record Company to manage stakeholders’ interests and complaints.

On the Lagos State Mortgage Finance Scheme, Mr. Oyekan regretted that the recent unfavourable development in financial circles which hamstrung the banks that form major stakeholders slowed down the scheme. He, however, assured that this ugly scenario will not deter the accomplishment of the venture.

“Government will continue to dialogue with the fund providers with a view to actualizing the intention of the Mortgage Scheme. The conviction of the essence of the scheme is real. The dream is alive and hopefully the results will soon manifest in the first beneficiaries taking ownership of their properties through the mortgage scheme,” he said.

The Commissioner disclosed that the second tranche of the state’s debt issuance programme (N50 billion) was oversubscribed by a staggering 249 per cent. The surplus, he said has already been refunded to the investors. “The proceeds of the second tranche have come into government coffers and I wish to assure you that in the same way the first tranche was judiciously spent on government projects, this will also be applied to the benefit of the entire people of the state,” he said.