The Lagos state government has unveiled plans to generate N375 billion annually from Land Use Charge (LUC) payments from residents of the state.
This is according to the synopsis document for the EKO Revenue Plus Summit, themed “Unlocking New Revenue Streams for Lagos State” and billed to be held on September 25th and 26th, 2024 in Lagos state.
The document stated that Lagos expects to receive investments to the tune of N15 trillion to meet its three million housing deficits.
Also, the Lagos state government projects to realise up to N1.5 trillion in revenue from different segments of the state’s property industry.
Furthermore, the document revealed that the state plans to generate around N540 billion from the Lagos Diaspora Smart City project and an estimated N500 billion from the Eko Home Ownership Scheme.
The report states, “LUC of at an average of N500k per Property from at least 750,000 houses to be registered on the Portal, will generate about N375b)”
Other projected revenue sources for the state in the property industry include;
The Lagos BuildIT platform– A digitized platform co-owned by the Lagos State Government (LASG) that aggregates and connects accredited professionals and suppliers in the real estate construction sector to prospective homeowners, saving them from longstanding delivery problems.
The state hopes to invest around N250 million for building the platform, operations and marketing while receiving revenues up to N1.2 billion per annum from subscription fees estimated at N10,000 monthly.
Eko Business Clusters– this project is billed to generate N125 billion in revenues yearly. This is through a N125 billion per annum public-private partnership (PPP) driven construction of 100,000 units in 52 major markets and business clusters in each of the FCDAs/LGAs, at a rent of N2.5 million per annum, resulting in a net inflow of N250 billion per annum. The projected revenue for the Lagos State Government (LSG) is N125 billion, based on a 50:50 ratio with joint venture partners.
What you should know
Earlier, the Lagos State Government announced that it generated N300 million from the Land Use Charge in the first four months of the year, out of the projected N700 million targets for 2024.
In 2018, the Lagos State House of Assembly passed the Land Use Charge Law of 2018 and set the LUC payment rate by multiplying the market value of the property (i.e. the sum of the land value and building development value) by the Annual Charge Rate. The annual charge rate for owner-occupied residential property is 0.0394% of the market value of the property.
