How Do I Calculate Land Use Charge in Ogun State?
Introduction
Understanding how Land Use Charge (LUC) is calculated in Ogun State is essential for every property owner, investor, developer, or tenant. This charge is not arbitrary—it is based on a formula that considers your property’s location, size, use, and value. Calculating your Land Use Charge correctly can help you budget accurately, avoid overpayment, and dispute errors if they occur.
In this guide, you’ll learn the step-by-step process for calculating Land Use Charge in Ogun State, the factors involved, and how to verify your bill online using the official LUAC portal.
🏡 Whether you’re a landlord, property buyer, or real estate agent, this is the must-know formula to protect your investment and stay compliant with the law.
What Is Land Use Charge in Ogun State?
Land Use Charge (LUAC) is a consolidated annual tax levied on properties in Ogun State. It replaces several former charges like Ground Rent, Tenement Rates, and Neighborhood Improvement Levies.
It applies to residential, commercial, industrial, and mixed-use properties and is payable annually to the Ogun State Government.
Who Pays It?
Property Owners – The primary payers, whether they occupy the property or not.
Occupants (in some cases) – Tenants may pay if there’s a clause in their tenancy agreement.
Developers/Investors – Especially for new or large-scale projects.
Step-by-Step Guide to Calculate Land Use Charge in Ogun State
NOTE: Ogun State doesn’t publicly release a single unified formula for LUAC like some other states (e.g., Lagos or Oyo), but based on official documents, property bills, and comparisons, the calculation typically follows a valuation-based model.
Step 1: Understand the Formula (Generalized)
A simplified formula to estimate your LUAC:
Where:
LUAC = Land Use & Amenities Charge
Rate = A government-assigned multiplier (varies by usage)
LA = Land Area (m²)
LV = Land Value per square metre (₦)
BA = Building Area (m²)
BV = Building Value per square metre (₦)
PCR = Property Code Rate (adjustment factor based on condition, usage, or zone)
Step 2: Gather Property Details
| Detail | Description |
|---|---|
| Land Area (LA) | The total size of your land in square meters. Get this from your survey plan. |
| Land Value (LV) | Depends on your location – e.g., Abeokuta GRA land is more expensive than in Ifo or Sagamu. Ask a registered valuer or check government valuation rates. |
| Building Area (BA) | The total built-up floor area (not just footprint). Multiply by number of floors. |
| Building Value (BV) | Estimated per m² value for construction. Varies by material, finishing, and location. |
| PCR (Property Code Rate) | A number between 0.8 to 1.5+ depending on condition or usage. May be defined by Ogun State’s LUAC team. |
Step 3: Plug in the Values (Example Calculation)
Let’s say you own a residential duplex in Abeokuta with the following:
Land Area = 500 m²
Land Value (LV) = ₦20,000/m²
Building Area = 250 m² (two floors)
Building Value (BV) = ₦30,000/m²
PCR = 1.0 (average property)
LUAC Rate = 0.25% (Residential rate – assumed)
Calculation:
Land Value = LA × LV = 500 × 20,000 = ₦10,000,000
Building Value = BA × BV × PCR = 250 × 30,000 × 1.0 = ₦7,500,000
Total Property Value = ₦10,000,000 + ₦7,500,000 = ₦17,500,000
LUAC = 0.25% × ₦17,500,000 = ₦43,750
Estimated Annual Land Use Charge = ₦43,750
NOTE: The LUAC rate varies depending on whether the property is residential, commercial, or industrial. The government doesn’t always publish this, but it’s usually included in your assessment bill.
How to Check Your Land Use Charge Bill Online (Ogun State)
You can confirm or calculate your actual charge directly from the official LUAC portal:
Steps to Follow:
Enter your LUAC code or property details.
View your current bill, previous charges, and payment status.
Make payments directly using REMITA or other available options.
Tip: If you don’t have a LUAC code yet, register your property online to get assessed and receive your charge notice.
Factors That Influence Your Land Use Charge
| Factor | Impact |
|---|---|
| Location | Urban areas attract higher land values and rates. |
| Usage Type | Commercial/industrial properties are charged higher than residential. |
| Size of Land/Building | The larger the land or building, the higher the charge. |
| Property Condition | Luxury or modern buildings attract higher charges due to higher PCR. |
| Amenities | Properties in serviced estates or with paved roads, drainage, and lighting may attract higher valuation. |
Common Mistakes to Avoid When Estimating LUC
Using wrong land/building size – Double-check your survey plans and building approval.
Ignoring building value – It’s not just about the land; buildings are also taxed.
Forgetting the PCR – This factor adjusts for finishing, location, and structure condition.
Missing discount opportunities – Online or early payments sometimes attract discounts (up to 50%).
What to Do If You Think Your Bill Is Too High
Contact LUAC office – Raise a formal query.
Request for reassessment – Submit current valuation reports or corrected documents.
Check for duplicate assessments – Some properties get wrongly assessed multiple times.
Use the online portal – See all historical charges and lodge complaints.
Call to Action
Do you know your LUAC status? Have you checked if your property is correctly assessed?
Visit https://portal.luac.ogunstate.gov.ng/self today.
Calculate your LUAC with confidence using your property details.
Pay early to avoid penalties and enjoy discounts.
Don’t leave your property to risk of sealing, penalties, or backdated arrears. Be proactive, be informed, and stay compliant.
Conclusion
Calculating Land Use Charge in Ogun State is easier when you understand the parameters. While the exact rate might vary by category and location, using the generalized formula above gives you a reliable estimate.
For official assessments, always refer to your LUAC bill or the Ogun LUAC portal. If you feel your charges are incorrect, take action quickly through the proper channels.