The Lagos State Government has announced plans to begin enforcement actions against property owners who have not settled their 2025 Land Use Charge (LUC), following the issuance of the 2026 Land Use Charge bills.  This move signals the state’s renewed push to improve compliance with property-related taxes and strengthen internally generated revenue used to fund infrastructure and public services across Lagos.  The Land Use Charge is an annual property tax imposed by the Lagos State Government on property owners. It is calculated based on factors such as property value, location, and usage. Enforcement Against Defaulters According to the Lagos State Government, enforcement measures will target property owners who fail to settle their outstanding 2025 Land Use Charge obligations. The enforcement is aimed at encouraging compliance and ensuring that all property owners contribute to the state’s development agenda.  According to Mahmud Tajudeen Alao, Permanent Secretary of the Lagos State Ministry of Finance, the Land Use Charge is more than a statutory obligation. He described it as a civic responsibility that supports the state’s growth and long-term sustainability.  Why Land Use Charge Matters The Land Use Charge remains one of the key sources of internally generated revenue for Lagos State. Funds generated from the tax are used to finance critical infrastructure and essential services across the state. Revenue from the charge supports projects such as:
  • Road construction and rehabilitation
  • Healthcare infrastructure improvements
  • Education development
  • Security initiatives
  • Urban transportation systems 
Funds from the Land Use Charge have contributed to major transport projects including the Lagos Rail Mass Transit Blue Line and Red Line, which aim at improving mobility and reducing travel time across the city.  Incentives for Early Payment  To encourage prompt compliance, the Lagos State Government is offering a 15% discount for property owners who pay their Land Use Charge early. Property owners can make payments through several channels, including:
  • Internet Banking
  • USSD payment codes
  • Bank Branches
  • Point-of-Sale terminals at LUC offices
  • The Lagos Revenue Portal 
  • The Lagos Online Assistant (LOLA) - WhatsApp platform
These options are designed to simplify the payment process and improve accessibility for taxpayers. Digital Access for Property Owners Abroad To add to the enforcement measures, the state has also introduced digital initiatives to make the Land Use Charge process more accessible. A platform has recently been launched that allows property owners in the diaspora to resolve disputes related to their Land Use assessments  remotely through the Land Use Charge Assessment Appeal Tribunal (LUCAAT). This digital system enables virtual hearings and complaint resolution, reducing the need for physical presence.  What Property Owners Should Do With the release of the 2026 bills and the planned enforcement of outstanding payments, property owners in Lagos are advised to:
  • Review their Land Use Charge Assessments
  • Pay outstanding 2025 charges promptly
  • Take advantage of the early payment discount offered by the government
  • Use official payment channels to avoid penalties
Timely compliance not only helps property owners avoid enforcement actions but also contributes to the development of infrastructure and services that support Lagos’s growing population and economy.  As Lagos State continues to strengthen its tax administration, property owners are encouraged to remain compliant and take advantage of the available payment options to avoid penalties.  Conclusion The Lagos State Government’s renewed enforcement of the Land Use Charge underlines the importance of tax compliance for property owners within the state. With the issuance of the 2026 bills and enforcement targeting outstanding 2025 payments,  property owners are encouraged to review their assessments, settle outstanding charges, and take advantage of the early payment discount.  Complying with this policy will not only help property owners  avoid penalties but will also support the development of essential infrastructure and services needed for the continued growth of the state.  At G.O. Marvel Enterprise Ltd, we encourage property owners and investors to stay informed about regulatory updates that may affect their real estate investments in Lagos.  Source: Nairametrics