The annual Lagos State Land Use Charge by property use, after the 40% general relief.
Annual Land Use Charge
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Charge rate
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Value after relief
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One bill instead of three
The Lagos State Land Use Charge rolled the old ground rent, tenement rate and neighbourhood improvement charge into a single annual property bill collected by the state. If you own property anywhere in Lagos, this is the recurring charge you face, and it is administered by the Lagos State Internal Revenue Service rather than the Federal Inland Revenue Service, because recurring property tax in Nigeria is a state matter. This calculator estimates that annual bill from the assessed value of your land and building and the way the property is used.
The figure it returns is indicative. Lagos maintains a fair market value schedule that is revised periodically, and the charge rates and reliefs have themselves been adjusted over the years, sometimes sharply, then partly walked back after public pushback. So treat the result as a planning estimate, and confirm the rate that applies to your property and the current assessed value with the Lagos State Internal Revenue Service before you budget around it.
How use changes everything you pay
Two properties of identical value can owe wildly different charges because the charge rate is keyed to use. The rates this calculator applies run from the lowest for an owner-occupied home, up through a middle rate where an owner lives in part of a property and lets out the rest, to the highest for purely commercial or investment property, with a separate rate for industrial premises. The intent is to tax the family home lightly and the income-producing asset more heavily.
Before the rate is applied, two adjustments shrink the base. A general relief of 40 percent comes off the assessed value first, as modelled here, so only 60 percent of the value is ever charged. If you enter a building age, the tool also applies a depreciation discount to the value to reflect an older structure, capped so it can never wipe out the base entirely.
A NGN 120 million owner-occupied home
Take a home you live in, assessed at NGN 120,000,000 for land and building together, brand new so no depreciation. The calculator applies the owner-occupied rate this tool uses, 0.05 percent, after the 40 percent relief.
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That same NGN 72,000,000 base, if the property were commercial at the 0.4 percent rate this tool applies, would produce a charge of NGN 288,000, eight times as much. The chart sets the three main use rates side by side on the identical base so you can see how steeply use drives the bill.
A trap when you let out a room
The most common mistake owners make is assuming the gentle owner-occupied rate still applies once they start letting part of the property. The moment a portion is rented to a third party, the property typically moves to the owner-plus-commercial rate this tool models, which doubles the rate on the whole base. Before you take in a tenant or convert a ground floor to a shop, run both rates here so the higher charge is not a surprise on the next demand notice.
This calculator is for Lagos property owners, prospective buyers comparing the running cost of a home versus a commercial unit, and small landlords sizing the holding cost of an investment flat. If you are over a certain age or the property qualifies for a specific exemption, the actual charge may be lower than the estimate, so always check eligibility for reliefs with the Lagos State Internal Revenue Service.
What if I never receive a demand notice?
Non-receipt does not switch off the liability. The charge accrues annually whether or not the notice reaches you, and late payment can attract penalties on top of the principal. If you own Lagos property and have not been billed, it is worth contacting the Lagos State Internal Revenue Service to confirm your assessment rather than assuming you are exempt.
Does the building age really cut my charge?
It can. This tool applies a depreciation discount to the assessed value for each year of building age, which lowers the charged base and therefore the bill, capped so the base never collapses to nothing. Whether Lagos grants depreciation in your specific assessment, and at what rate, depends on the current valuation rules, so use the age field as an estimate and confirm the actual treatment on your assessment with the state revenue service.