What Is Land Use Charge in Ogun State?
Introduction
Land is one of the most critical assets any government can harness: for housing, commerce, agriculture, and industrial development. But as cities grow, infrastructures expand, and demands for amenities increase, governments need sustainable revenue streams to provide roads, water, electricity, sanitation, security, and other public goods. In Ogun State, Nigeria, one such revenue mechanism is the Land Use and Amenities Charge (LUAC), often called Land Use Charge or Land Use & Amenities Charge.
This article explores what Land Use Charge in Ogun State is, the law behind it, why it matters, how it is calculated, who pays, enforcement and compliance, challenges, benefits, criticisms, and how you as a resident or property‑owner can interact with the system (check bills, pay, appeal, etc.). By the end, you’ll have a clear understanding of LUAC—what it is, how it works, and what you need to do.
Table of Contents
Legal Basis & Definition
Purpose / Why Ogun State Introduced LUAC
Components / What It Replaces
Who Is Liable / Who Pays
How the Charge Is Computed
Modes of Payment & Incentives
Enforcement & Penalties for Non‑Compliance
Exemptions, Appeals & Disputes
Pros & Cons / Criticisms
Practical Examples & Case Studies
What It Means for Property Owners and Residents
Conclusion
Call to Action
1. Legal Basis & Definition
The Land Use & Amenities Charge (LUAC) in Ogun State is backed by the Land Use and Amenities Law of 2013. Ogun State Portal
Under this law, LUAC is a consolidation of all land‑use based levies, such as Tenement Rates, Ground Rent, Neighbourhood Improvement Charges etc., into a single charge. Ogun State Portal
The goal is to harmonize all land‑based charges (state & local government) under one administration to reduce multiplicity, reduce inefficiencies, and ensure clarity and equity. Ogun State Portal
Definitionally, it is an annual charge payable by owners (or sometimes occupiers) of landed properties (land + buildings / improvements) in Ogun State for the provision of public amenities and as part of the state’s internally generated revenue (IGR). It covers value of the land, improvements, usage, location, etc.
2. Purpose / Why Ogun State Introduced LUAC
Several reasons underlie why Ogun State government adopted LUAC:
Revenue Mobilization & Sustainability: To boost internally generated revenue so the state can better fund social services, infrastructure, maintenance of roads, water supply, etc. Radio Nigeria Ibadan+2Ogun State Portal+2
Simplification: To remove overlapping land‑based taxes and charges across State and Local Government Areas that are confusing, duplicated, or evasive. To have one demand notice, one payment mechanism. Ogun State Portal+1
Fairness and Transparency: To ensure all owners of property pay fairly based on location, usage, size etc., and to reduce the loopholes that allow some to evade or delay payment. Ogun State Portal+1
Encouraging Compliance & Ease of Doing Business: By offering online systems, unique payment codes, discounts for early or digital payments, Ogun State aims to make it easier for property owners to comply. Vanguard News+2Ogun State Portal+2
Ensuring Provision of Amenities: The “Amenities” part of LUAC reflects the link between the revenue raised and state’s responsibility to provide amenities—clean water, roads, waste disposal, drainage, etc. Funds from LUAC are to be used to improve the quality of life for residents and create a better urban and rural environment. Ogun State Portal+1
3. Components / What It Replaces
LUAC merges several former charges into one. Before LUAC, property owners were subject to (among others):
Tenement Rate: a charge on buildings based on their rental value.
Ground Rent: rent payable to government for the land on which property is built.
Neighbourhood Improvement Charge: fees for local improvements like drainage, roads, sanitation in neighbourhoods.
By consolidating these under one law, LUAC eliminates duplication, confusion, and multiple demands from different agencies. It ensures that property owners receive one bill reflecting all land‑based or property‑based charges. Ogun State Portal+1
4. Who Is Liable / Who Pays
Property Owners are primarily liable: If you own a landed property (land + improvements) in Ogun State, you are required to pay LUAC. Ogun State Portal+1
In some cases, Occupiers or Tenants may be required to pay if the law allows or if there is an agreement (or if the occupier is in possession and meets certain criteria). The law may assign liability in certain cases. (Many states’ LUC laws allow for occupiers to pay, but you should check if Ogun specifies this explicitly in each case.) Ogun’s law tends to focus on the owner, but the process also requires capturing unregistered or unregistered properties. Ogun State Portal
The charge applies to properties regardless of whether they are residential, commercial, or industrial, but the rate, valuation, and other factors differ depending on usage. Radio Nigeria Ibadan+1
5. How the Charge Is Computed
While Ogun State does not always publish (in the public domain) a detailed, formulaic breakdown as some other states do (e.g., Oyo or Edo), the LUAC is assessed based on certain key parameters. Here’s what is known, and how one can expect the computation to work, drawing on Ogun’s practice plus comparisons with other states.
Key Parameters Considered:
Land Area: Size of the land parcel. Larger parcels may result in higher charge.
Land Value: Market value of land in that area per square meter. Location matters a lot—if it’s a prime area vs. outskirt.
Building / Improvement Area: Floor area(s) of buildings on the land (number of rooms, storeys, etc.).
Building / Improvement Value: The cost or value of the structure(s) on the land (quality of building, finishing, age, condition).
Usage / Zoning: Residential, commercial, industrial, mixed‑use etc. Commercial / industrial are usually charged higher rates.
Neighbourhood / Location: neighbourhood average values; whether area has amenities, infrastructure etc.
Property Code Rate or Adjustment Factor: Some factor that adjusts for building quality, completion status, whether the property is above or below average for its area.
Known Features / Practice in Ogun:
Demand notices for LUAC bills have unique Payment Codes used to identify property, check the bill online, and make payment. Ogun State Portal
Online systems (including government portals, REMITA etc.) are used. Discounts have been given for online payments. Vanguard News+2The Guardian Nigeria+2
Non‑compliance or delay leads to sanctions—perhaps sealing of property, penalties etc. The Sun+2Ogun State Portal+2
Example of a Possible Computation (Hypothetical):
To illustrate, here is a hypothetical calculation based loosely on practices in other states, adapted for Ogun‑style LUAC parameters:
| Parameter | Value (example) |
|---|---|
| Land Area (LA) | 500 m² |
| Land Value per m² (LV) in the neighbourhood | ₦20,000 |
| Building Area (BA) (sum of floor areas) | 200 m² |
| Building Value per m² (BV) | ₦30,000 |
| Property Code Rate (PCR) | 1.2 (house is somewhat above average) |
| Charge Rate (M) | say 0.25 (for mixed commercial/residential, higher than purely residential) |
Then assessed value of land = LA × LV = 500 × 20,000 = ₦10,000,000
Assessed value of building = BA × BV × PCR = 200 × 30,000 × 1.2 = ₦7,200,000
Total assessed value = ₦10,000,000 + ₦7,200,000 = ₦17,200,000
Annual LUAC = M × Total assessed value = 0.25 × ₦17,200,000 = ₦4,300,000
This is just illustrative. Ogun State may have its own rate tables and adjustment factors that differ.
6. Modes of Payment & Incentives
Ogun State has instituted several mechanisms to make payment easier, more transparent, and to encourage early or online compliance.
Self‑Service Portal: Ogun has an online portal from which property owners can check their LUAC bill, register properties that may not have been previously captured, and pay bills. Ogun State Portal
Unique Payment Codes: Each demand notice comes with a payment code (sometimes with QR codes) that ensures you use the correct reference and reduces fraud. Ogun State Portal+1
Online Payment Platforms: Use of REMITA platform, government portals, commercial banks, possibly USSD/internet banking etc. Vanguard News+2The Guardian Nigeria+2
Discounts for Early/Online Payment: For example, in 2020 the Ogun State Government granted up to 50% discount to investors who paid LUAC early via online channels. Other tiered discounts were available for payments made later. Vanguard News+2City Business News+2
Automatic Receipts: Receipts for payments are generated automatically once payment is confirmed. This helps avoid hassles of physical visits purely for clearance. Ogun State Portal
7. Enforcement & Penalties for Non‑Compliance
To ensure that property owners comply, Ogun State has enforcement mechanisms:
Sealing of Properties: Properties of defaulters (those who fail to pay LUAC) may be sealed. The Sun+1
Taskforce: Ogun has a dedicated LUAC taskforce empowered to check compliance and enforce payment. The Sun
Sanctions: Penalties may include administrative charges, late payment penalties, possibly legal action depending on the law’s provisions. Ogun State Portal+1
Public Awareness & Notices: LUAC bills are distributed; demand notices are published; residents are regularly reminded to pay to avoid sanctions. Radio Nigeria Ibadan+1
8. Exemptions, Appeals & Disputes
No system of charges is without exceptions. In Ogun State:
Potential Exemptions: Some categories may be exempt or have special arrangements—public or religious institutions, certain agricultural or non‑profit properties, etc. While I did not find a fully comprehensive publicly published exemption list for Ogun, there are calls from groups (e.g. poultry farmers) to be exempted or to have reductions, given sector challenges. Punch News
Appeals / Dispute Resolution: If a property owner believes their LUAC assessed bill is excessive or incorrect, they should have recourse through administrative or legal means—filing objections, providing valuation evidence, negotiating with lands / finance / revenue department. The precise mechanism should be in the law or regulations (inspection, assessment, protest, hearing) though public documentation may not always be clear.
Registration of Properties: A key issue is that some properties may not have been captured in the property register, so owners are sometimes newly “discovered” and receive bills for prior years. It’s usually better to ensure your property is properly registered and documented to avoid surprises.
9. Pros & Cons / Criticisms
Advantages
Unified System: Easier for government to administer; fewer overlapping or duplicative charges.
Predictability and Transparency: With clear bills, payment codes, online portals, property owners know what they owe.
Better Revenue for State & Local Governments: More revenue means more capacity to deliver public services.
Encouragement of Compliance: Discounts, ease of payment, and public awareness help improve participation.
Potential for Equity: Charges based on value, usage, location can mean those who can afford more pay more; helps spread burden fairly.
Disadvantages & Criticisms
Assessment Accuracy: Discrepancies or disagreements about market value of land or buildings can lead to over‑charging or unfair assessments.
Burden on Residents / Small Property Owners: For people in poorer neighbourhoods or those with lower incomes, even small charges might be hard to pay, especially if bills include arrears from several years.
Awareness and Clarity: Some property owners may not fully understand the law, how the charge is calculated, or what rights they have.
Enforcement Harshness: Risk of property sealing or penalties can be seen as heavy‑handed, especially for those who default for genuine reasons (financial difficulty).
Implementation Gaps: Issues such as under‑registration of properties, poor records, inconsistent valuation across neighborhoods, potential for corruption.
10. Practical Examples & Case Studies
To make the above more concrete, here are some illustrative examples and what has happened in Ogun State in practice.
Case Study: 50% Discount for Online Payments (2020)
In 2020, Ogun State Government offered 50% discount on LUAC for investors who paid early (before September 30). Those paying in October got 25% discount; November 10%; etc. This incentive encouraged early payments and use of online payment channels. The Guardian Nigeria+2City Business News+2
Payment codes, online platforms (including REMITA) were emphasized, and receipts / notifications automated. The Guardian Nigeria+1
Case Study: Enforcement via Sealing
Effective from October 1, 2021, the LUAC task force was empowered to begin enforcement on commercial and industrial properties that had defaulted. Some properties were to be sealed if owed bills from previous years. The Sun
Case Study: Distribution of LUAC Bills
Ogun began distributing LUAC/amenities charge bills to property owners across all residential, commercial, industrial categories, including remote or less densely populated areas. Part of this was to ensure no property is left outside the tax net. Radio Nigeria Ibadan
11. What It Means for Property Owners / Residents
If you own property or live in Ogun State, here’s what you should know and possibly do:
Check whether your property is registered / captured under the LUAC system. Men often discover that their property has not been assessed or included in billing.
Look out for demand notices. These may come via posted bills or online portals; in some cases, they may include unique payment codes and QR codes for validation. Use those to verify legitimacy.
Use the online portals / payment codes to verify and pay your bills. Use REMITA or approved bank channels; avoid paying through unverified agents.
Pay early if possible—there may be discounts. Missing early‑payment windows may cost you more or expose you to penalties.
If you believe your assessed value is wrong (e.g., land value or building value is mis‑estimated), gather evidence (valuations, comparable property data) and seek appeal / review through the relevant department.
Stay updated with the law, especially any amendments, changes in rates, or policies (for instance, excepting certain categories or sectors).
12. Challenges & Areas for Improvement
While LUAC is a good system in principle, several operational challenges are often reported or observed in Ogun State (and similar jurisdictions). Recognizing them may help both government and residents.
Data and Valuation Accuracy: Land and building value assessments depend heavily on good data. If registry, planning, building approvals, land surveys are incomplete or outdated, valuations may be off.
Public Awareness: Many property owners may be unaware that LUAC replaces older charges, or that they no longer need to pay multiple rates. Some may not even know about online payment portals, payment codes etc.
Affordability: In times of economic hardship, even modest charges are burdens on households or businesses. Government needs to balance revenue needs with ability to pay.
Dispute Resolution Efficiency: Appeal mechanisms need to be easily accessible, fair, not too burdensome or expensive.
Transparency & Accountability: How the revenues collected are used is important for public buy‑in. If LUAC funds are perceived to disappear or not translate to better amenities, compliance may drop.
Coverage & Compliance Enforcement: Ensuring that all properties are captured (even in informal or less developed zones) is challenging. Also, enforcement (sealing, sanctions) must be fair and consistent.
13. Comparisons with Other States (Optional but Useful)
Comparing Ogun’s LUAC with practices in other Nigerian states helps understand strengths, weaknesses, and possible learnings.
Oyo State: They have a detailed formula: LUC = M × [(LA × LV) + (BA × BV × PCR)] etc., with defined classifications and rates. lands.oyostate.gov.ng+1
Edo State: Detailed law, exemptions, explicit percentages for different property usages. edogis.edostate.gov.ng+1
Ogun can learn from these (and vice versa) in terms of clarity of rates, level of public communication, frequency of review, etc.
14. Conclusion
The Land Use and Amenities Charge (LUAC) in Ogun State is a modern mechanism for property taxation aimed at making levy of land‑based property charges more efficient, transparent, and equitable. It consolidates many older levies (ground rent, tenement rates, etc.) into a single legal charge, simplifies collection, and aims to ensure that property owners contribute fairly to state and local government revenue, which in turn funds infrastructure and public services.
However, achieving its full promise requires accurate property registration and valuation, clear communication with property owners, fair and accessible appeal mechanisms, and ensuring collected funds are visibly used for public amenities. Otherwise, resistance, evasion, and perceptions of unfairness may undermine the system.
15. Call to Action
If you are a property owner or occupier in Ogun State:
Check if your property is registered under LUAC. Visit the LUAC Self‑Service Portal to see if there is a bill in your name. Ogun State Portal
Validate your demand notice: Ensure it has a unique payment code (or QR code) and corresponds to your property. Be wary of fraudulent demands.
Pay early using approved channels: Use the online portal, REMITA, or approved banks nationwide to pay. Early payment often comes with discounts.
Keep records: Receipts, payment codes, valuation notices—these may be needed if there’s a dispute or follow‑up.
Raise concerns / appeal if needed: If you believe your assessment is wrong, reach out to the Ogun State Ministry of Lands or the relevant LUAC office.
Stay informed: Laws can change. Government may revise rates, change exemptions, adjust rules. Being aware helps you make better decisions.