The Lagos State Commissioner for Finance, Dr. Rabiu Olowo, has stated that reform in Land Use Charge (LUC) is essential to accommodate the agitations of Lagosians and to reduce the financial pressure on citizens.
The Commissioner disclosed that there was an increase in LUC rate and at the same time a revaluation of property in 2018, which had a sporadic increase in LUC assessment.
Olowo, thus, avowed that the soon to be revealed reform will, among others, reverse the rate to pre-2018.
He explained that the intention of the State government is to keep economic activities going, without necessarily causing any untold hardship that will further aggravate the present financial hardship confronting all sectors of the State’s economy.
Dr. Olowo, who made this disclosure, on Wednesday, while giving the scorecard of the Ministry at the Ministerial Press briefing commemorating the one year in office of the State Governor, Mr. Babajide Sanwo-Olu at the JJT Park Alausa, Ikeja, declared that the State achieved 106% performance in the first quarter of Y2020 Revenue as against Budget.
He said that, although the direct impact of the COVID-19 pandemic has led to a drop in the State’s IGR and Federal Allocation, potential decline of Foreign Direct Investment (FDI) and increased pressure on income and purchasing power of Lagosians, the Sanwo-Olu administration had in swift response re-ordered the Y2020 Budget and re-prioritised its Capital Expenditure to reflect current realities.
He, however, maintained that in view of the devastating effects of the COVID-19 pandemic and the dwindling Oil prices, which is a twin-shock to the whole of Nigeria, the State Government realised that revenue numbers will be affected and as such, the need arose to review the Y2020 Budget assumptions.