Who pays ground rates in Nigeria landlord or tenant?
In Nigeria, ground rates (also known as land rates or land use charges) are typically paid by the landlord. These rates are a form of property tax imposed by the government on the land or property owners for land use. The responsibility of paying ground rates falls on the landlord because they are the legal owners of the property.
The landlord, being the holder of the right of occupancy, is primarily responsible for:
- Paying ground rent to the government as stipulated by the terms of the right of occupancy.
- Ensuring that the payment is made on time to avoid penalties or the revocation of the right of occupancy.
- Managing any administrative processes related to the land, including any dealings with government authorities regarding ground rent.
What are Ground Rates?
Ground rent is a type of real estate fee levied by the government. It is paid annually by the owner of the land, which can either be an individual or a corporate entity. The fee is essentially a form of property tax or leasehold charge imposed on landowners.
In Nigeria, land ownership and related responsibilities are governed by the Land Use Act of 1978. According to this law:
- The ownership of land in Nigeria is vested in the government.
- Individuals or entities can hold land through a right of occupancy granted by the government.
- The holder of a right of occupancy is required to pay ground rent to the government.
The amount of Ground Rates in Nigeria
The amount of ground rent (or ground rates) in Nigeria varies significantly based on several factors, including the location of the land, its size, its use (residential, commercial, agricultural), and the specific policies of the state government. Here are some key points to consider:
- Urban Areas: Ground rent in urban areas, especially in major cities like Lagos, Abuja, and Port Harcourt, tends to be higher due to the high demand for land and the higher value of real estate in these areas.
- Rural Areas: In rural areas, ground rent is usually lower due to lower land values and less demand.
- Residential Use: Land used for residential purposes generally attracts a different rate compared to commercial or industrial land.
- Commercial/Industrial Use: Land used for commercial or industrial purposes typically has higher ground rent rates due to the potential for higher income generation from such properties.
- Lagos State: The Lagos State Land Use Charge Law consolidates all land-based charges, including ground rent, into a single charge, which varies depending on the location and use of the property.
- Abuja (FCT): The Federal Capital Territory has its rates and policies, often reflecting its status as the capital city with prime real estate.
Here’s a more detailed breakdown of the potential ground rent fees in Nigeria, categorized by location and land use. These figures are indicative and can vary based on specific circumstances and government policies.
1. Lagos State
Lagos is one of the most expensive areas in Nigeria due to its economic significance and high demand for real estate.
Residential Use
- High-Demand Areas (e.g., Victoria Island, Ikoyi): ₦20,000 – ₦50,000 per square meter annually.
- Medium-Demand Areas (e.g., Ikeja, Lekki): ₦10,000 – ₦20,000 per square meter annually.
- Low-Demand Areas (e.g., Alimosho, Badagry): ₦5,000 – ₦10,000 per square meter annually.
Commercial Use
- High-Demand Areas (e.g., Victoria Island, Ikoyi): ₦50,000 – ₦100,000 per square meter annually.
- Medium-Demand Areas (e.g., Ikeja, Lekki): ₦20,000 – ₦50,000 per square meter annually.
- Low-Demand Areas (e.g., Alimosho, Badagry): ₦10,000 – ₦20,000 per square meter annually.
2. Abuja (FCT)
Abuja, being the capital city, also has significant variations in ground rent fees.
Residential Use
- High-Demand Areas (e.g., Maitama, Asokoro): ₦15,000 – ₦30,000 per square meter annually.
- Medium-Demand Areas (e.g., Gwarinpa, Wuse): ₦7,000 – ₦15,000 per square meter annually.
- Low-Demand Areas (e.g., Kubwa, Lugbe): ₦3,000 – ₦7,000 per square meter annually.
Commercial Use
- High-Demand Areas (e.g., Central Business District): ₦30,000 – ₦60,000 per square meter annually.
- Medium-Demand Areas (e.g., Wuse, Garki): ₦15,000 – ₦30,000 per square meter annually.
- Low-Demand Areas (e.g., Jabi, Utako): ₦7,000 – ₦15,000 per square meter annually.
3. Port Harcourt (Rivers State)
Port Harcourt, being an oil city, also sees varying rates based on demand and land use.
Residential Use
- High-Demand Areas (e.g., GRA Phase 1, 2, and 3): ₦10,000 – ₦20,000 per square meter annually.
- Medium-Demand Areas (e.g., Rumuola, Trans Amadi): ₦5,000 – ₦10,000 per square meter annually.
- Low-Demand Areas (e.g., Diobu, Oyigbo): ₦2,000 – ₦5,000 per square meter annually.
Commercial Use
- High-Demand Areas (e.g., GRA): ₦20,000 – ₦40,000 per square meter annually.
- Medium-Demand Areas (e.g., Trans Amadi): ₦10,000 – ₦20,000 per square meter annually.
- Low-Demand Areas (e.g., Diobu): ₦5,000 – ₦10,000 per square meter annually.
4. Kano State
Kano, being a major commercial hub in Northern Nigeria, has its unique rates.
Residential Use:
- High-Demand Areas (e.g., Nassarawa, Tarauni): ₦5,000 – ₦10,000 per square meter annually.
- Medium-Demand Areas (e.g., Gwale, Fagge): ₦3,000 – ₦5,000 per square meter annually.
- Low-Demand Areas (e.g., Kumbotso, Ungogo): ₦1,000 – ₦3,000 per square meter annually.
Commercial Use:
- High-Demand Areas (e.g., Nassarawa, Tarauni): ₦10,000 – ₦20,000 per square meter annually.
- Medium-Demand Areas (e.g., Gwale, Fagge): ₦5,000 – ₦10,000 per square meter annually.
- Low-Demand Areas (e.g., Kumbotso, Ungogo): ₦2,000 – ₦5,000 per square meter annually.
How to Calculate Ground Rent
Ground rent is typically calculated as a percentage of the land value or based on a fixed rate per square meter. For instance:
- Fixed Rate per Square Meter: Some states might have a flat rate per square meter for different categories of land.
- Percentage of Land Value: Other states might base the ground rent on a percentage of the assessed value of the land.
Who pays the land use charge in Lagos, landlord or tenant?
In Lagos, the responsibility for paying the Land Use Charge (LUC) typically falls on the property owner, which is usually the landlord. The Land Use Charge Law of Lagos State consolidates all land-based rates and charges, including property tax, ground rent, and neighborhood improvement charges, into a single levy payable by the property owner.
Who Collects the Land Use Charge?
The Lagos State Government, through the Lagos State Land Use Charge Office (LUCO), is responsible for collecting the Land Use Charge. This office operates under the Lagos State Ministry of Finance.
Who Pays Rent for the House or Land He Occupied?
The tenant pays rent for the house or land they occupy. This rent is paid to the landlord or property owner as stipulated in the lease or rental agreement.
How to Pay Lagos State Land Use Charge?
To pay the Lagos State Land Use Charge, follow these steps:
- Obtain the Demand Notice: The Lagos State Land Use Charge Office sends a demand notice to property owners, detailing the amount to be paid.
- Visit the Payment Portal: Go to the official Lagos State Land Use Charge payment portal or designated banks.
- Enter Property Details: Provide the necessary property details as indicated on the demand notice.
- Make Payment: Choose a payment method (e.g., online payment, bank payment) and complete the transaction.
- Obtain Receipt: Ensure you get a receipt or proof of payment for your records.
Do Churches Pay Land Use Charge in Lagos State?
No, religious organizations, including churches, mosques, and other places of worship, are typically exempt from paying the Land Use Charge in Lagos State.
However, this exemption only applies to properties used solely for religious activities. If the property is used for commercial purposes, it may still be subject to the charge.