How your Land Use Charge bill is worked out
Lagos first consolidated its property rates into a single Land Use Charge in 2001. The current law is the Land Use Charge Law 2020, which brought rates back down after protests about the steep bills under the 2018 law, while keeping its valuation method.
How the bill is worked out. In broad terms, the charge is the property's assessed market value, reduced by reliefs, multiplied by a rate that depends on who uses the property and how:
- owner-occupied residential property pays the lowest rate;
- residential property the owner shares with tenants, and manufacturers' industrial premises, pay a middle rate;
- commercial property, and residential property wholly let with no owner living there, pay the highest rate.
The 2020 rates are in the figures box. Some older articles still print the higher 2018 rates.
Who pays. The owner is liable. Bills are sent once a year, and Lagos has offered discounts for early payment in some years and pursued enforcement against unpaid bills. Exemptions and reliefs exist for some categories of owner and use; check the current list with the Lagos Ministry of Finance or the Land Use Charge office.
The 2026 valuation question. The Lands Bureau's revised Blue Book values took effect on 1 May 2026 for land transactions. Valuation for the Land Use Charge is linked to market values, so owners should watch how the new values feed into their bills.
Buying a property. Unpaid Land Use Charge can follow the property. Ask the seller for receipts for recent years and make clearing arrears a condition of the sale.
Differences by state
- Lagos only: the Land Use Charge is a Lagos law.
- Abuja (FCT): owners pay ground rent and other bills through AGIS instead.
- Other states: use tenement rates, ground rent or their own property taxes.
What to check
- Recent Land Use Charge bills and receipts for the property you are buying.
- That the property is classed correctly as owner-occupied, let or commercial.
- That the assessed value on the bill is reasonable; you can object to the assessment through the official process.
Red flags
- Payment requests to personal accounts rather than the official channels.
- A seller unwilling to show Land Use Charge receipts.
- Bills quoting the old 2018 rates.
Typical cost or timeline
Land Use Charge rate, owner-occupied residential (Lagos, 2020 law)
0.0394 % of the chargeable value per year
As of October 2026
Land Use Charge rate, residential where the owner lives alongside tenants, or industrial premises used by manufacturers (Lagos, 2020 law)
0.132 % of the chargeable value per year
As of October 2026
Land Use Charge rate, commercial, or residential with no owner in residence (Lagos, 2020 law)
0.394 % of the chargeable value per year
As of October 2026
Land Use Charge vs Ground rent
| Aspect | Land Use Charge | Ground rent |
|---|---|---|
| Where | Lagos | Every state; billed separately in Abuja |
| What it covers | Ground rent, tenement rate and neighbourhood charge in one | Rent on the right of occupancy only |
| Basis | Assessed property value and use | Rate set in the grant |
| Paid by | The owner | The title holder |
Find property
Questions
What is Land Use Charge in Lagos?
It is Lagos State's yearly property tax, combining ground rent, tenement rate and the neighbourhood improvement charge into one bill based on assessed value.
How is Land Use Charge calculated?
Broadly, the assessed value of the property, less reliefs, multiplied by a rate set for its use. The 2020 rates are in the figures box.
Who pays Land Use Charge, landlord or tenant?
The owner is liable under the law. A lease may say otherwise between the parties, but the state looks to the owner.
How do I pay Land Use Charge in Lagos?
Through the official Lagos State payment channels shown on the bill. Keep the receipts, as buyers and lenders ask for them.
Related terms
Sources
- 1. New Lagos Land Use Charge Law BusinessDay · checked 13 October 2026
- 2. Four key points in the new Lagos 2020 Land Use Charge Nairametrics · checked 13 October 2026
- 3. Lagos State Government reduces LUC rates and waives penalties Mondaq · checked 13 October 2026
- 4. Lagos to enforce 2025 land use charge payment as 2026 bills released Leadership · checked 13 October 2026
- 5. Lagos State Blue Book to take effect from 1 May 2026 Aluko & Oyebode · checked 13 October 2026
Cite this definition
"Land Use Charge", Nigeria Property Centre Property Glossary, last checked 13 October 2026, https://nigeriapropertycentre.com/glossary/land-use-charge
You may reuse this definition under CC BY 4.0 with credit to Nigeria Property Centre and a link to this page.
Something wrong or out of date?
Thanks, we'll check this.
You've sent several reports already. Please try again later.