The Lagos State Government has released the 2026 Land Use Charge (LUC) bills, urging property owners across the state to settle their obligations promptly and take advantage of a 15 percent early payment discount offered within the stipulated payment window. Officials say the tax remains a key component of the state’s internally generated revenue (IGR), which finances infrastructure development, urban management, and public services in Nigeria’s commercial capital.
Speaking on the release of the 2026 bills, the Permanent Secretary of the Lagos State Ministry of Finance, Tajudeen Mahmud Alao, stressed the importance of compliance.
“The Land Use Charge is not merely a statutory obligation; it is a civic responsibility that directly supports the growth and development of our State. Every payment made contributes to better roads, improved healthcare, quality education, enhanced security, and a cleaner environment. We urge all property owners to fulfil their obligations promptly and support the Government’s vision for a Greater Lagos.”
The government also confirmed that enforcement actions against property owners who failed to pay their 2025 Land Use Charge will commence shortly, signalling a renewed push to improve compliance and strengthen revenue collection.
What the Land Use Charge Is
The Land Use Charge is an annual property tax payable by owners of real estate in Lagos State. It was introduced in 2001 and later amended by the Lagos State Land Use Charge Law of 2018, which consolidated three previous property-related taxes:
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Ground rent
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Tenement rate
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Neighbourhood improvement levy
The consolidation was designed to simplify property taxation and reduce administrative overlaps in the state’s revenue system.
Under the law, the charge is calculated based on several variables including:
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Property market value
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Building type and usage (residential, commercial, industrial)
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Location and neighbourhood classification
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Applicable relief rates
The law also grants exemptions for certain categories of property, including those used exclusively for religious worship, public libraries, cemeteries, and registered non-profit educational institutions.
A Key Source of Lagos’ Internally Generated Revenue
Lagos State operates the largest subnational economy in Nigeria, with a GDP estimated by state authorities at over $250 billion on a purchasing power parity basis. To sustain its expansive infrastructure and public services programme, the state relies heavily on internally generated revenue rather than federal allocations.
According to the Lagos State Internal Revenue Service (LIRS), Lagos generated over ₦800 billion in internally generated revenue in 2024, far exceeding any other Nigerian state. Property taxes such as the Land Use Charge form part of the broader revenue framework supporting:
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Road and transport infrastructure
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Drainage and flood management systems
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Waste management and environmental sanitation
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Public education and healthcare investments
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Security and urban management services
Urban economists note that property taxation is one of the most sustainable revenue sources for large metropolitan governments worldwide, particularly for cities with rapidly expanding real estate markets such as Lagos.
Payment Channels Available
To make payment easier for property owners, the Lagos State Government has provided multiple payment options.
Payments can be completed through:
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Internet banking platforms
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Designated bank branches across the state
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USSD mobile payment channels
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Point-of-Sale terminals at Land Use Charge offices
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The Lagos Online Assistant (LOLA) WhatsApp payment platform: +234 807 844 1111
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The Lagos Revenue Portal (LRP): https://revenue.lagosstate.gov.ng/
Authorities say these digital channels are part of a broader digital revenue administration strategy aimed at reducing leakages and improving transparency in tax collection.
Compliance Push Amid Expanding Property Market
The release of the 2026 Land Use Charge bills comes as Lagos continues to experience rapid urban expansion, with new residential estates, commercial developments, and mixed-use property projects transforming the city’s real estate landscape.
Urban planners say improving compliance with property taxation will become increasingly important as Lagos invests in large-scale infrastructure projects including:
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The Lagos Rail Mass Transit system
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Major highway expansions and bridges
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Urban renewal projects in several districts
By broadening the property tax base, officials say the state can reduce dependence on volatile federal allocations and maintain fiscal capacity to fund long-term urban development.
For now, authorities are urging property owners to settle their bills early to benefit from the 15 percent discount and avoid enforcement penalties.
