Crushed under the boot of Lagos State Government

Usually, from the first day of January of every year, I begin to
look out for the land use charge bill on the property that I
occupy. I have an expected figure in mind and I try to take
advantage of the early bird discount. This year, I had the same
expectations in mind until a message posted in my Apapa community
group woke me up to the fact that Lagos State had passed a new Land
Use Charge Law, and the effect of the law was an astronomical
increase in the charges. The law has been widely analysed and it is
safe to say that it has not been well-received, at least not by
anyone I know who has received their bill from the State
Government.

Last week, I received a bill from the State which represents a
660 per cent increase on the amount of the previous bill for the
same property. Although the copy of the law that I have does not
state a commencement date for the law, it is obvious to those who
have received a bill that the law commenced with immediate
effect.

The law provides a formula for determining the land use charge
on a property which takes into consideration the area of the land;
the market value of the land; the average construction value of
medium quality buildings in the neighbourhood; the depreciation
rate; the rate of relief (where applicable); and the charge rate. I
have read analyses that report that the formula was developed to
bring more certainty to the charge on properties liable to pay the
land use charge. That would be a laudable objective but of what use
is this certainty to a person who cannot afford to pay the charge?
The law also provides in Section 10 (2) that the market value of a
property will be reviewed every five years and the land value and
building value rates may be in line with the rate of inflation. How
this all translates in a neighbourhood like Apapa that has seen
property values drop and occupancy rates increase due to the
neglect of government is best left for discussion on another
day.

This is in a country where, for at least the past three years,
inflation rates have hovered at approximately 16%; the minimum wage
has remained static; there have been thousands of job losses,
rising unemployment rates; and the purchasing power of ordinary
citizens has diminished, yet a group of people supposedly sitting
together to promote the interests of the people comes up with ways
to crush the people with a quick succession of increases in rates
and taxes. We do not need an economics degree to know that this law
was ill-conceived and ill-timed. It is either the government is
aloof or it is insensitive, neither is good. A government should
have policies that encourage the growth and advancement of its
citizens. But Lagos State seems hell bent on creating a hostile
environment for businesses and citizens. An environment that chokes
the life out of budding development. If the drive is to increase
internally generated revenue, why is it the citizens who are
already struggling to survive who must bear the weight?

What the actions of the Lagos State Government (legislature and
executive arms) clearly tell us is that our votes do not count. If
the Lagos State Government believed in the power of the electorate,
there is no way that such a law could be passed months before a
general election, by a group of grown-up, sober men and women who
were elected to protect the interests of their constituents. The
citizens of Lagos can and should see this as a call to action. Such
action as would send a clear message to the politicians that they
are in position to serve the interests of the people. We can only
do this by participating in the electoral process and showing up to
cast our votes on election day. There is no “they” in this; “we”
must speak with our votes at the next elections.

I shall conclude with a quote from Calvin Coolidge (30th
President of the United States of America):

“A government which lays taxes on the people not required by
urgent public necessity and sound public policy is not a protector
of liberty, but an instrument of tyranny. It condemns the citizen
to servitude. One of the first signs of the breaking down of free
government is a disregard by the taxing power of the right of the
people to their own property. It makes little difference whether
such a condition is brought about through the will of a dictator,
through the power of a military force, or through the pressure of
an organized minority. The result is the same. Unless the people
can enjoy that reasonable security in the possession of their
property, which is guaranteed by the Constitution, against
unreasonable taxation, freedom is at an end. The common man is
restrained and hampered in his ability to secure food and clothing
and shelter. His wages are decreased; his hours of labour are
lengthened.”

What we do at the polls next year will be a testament to how
much we value our freedom.

Usually, from the first day of January of every year, I begin to
look out for the land use charge bill on the property that I
occupy. I have an expected figure in mind and I try to take
advantage of the early bird discount. This year, I had the same
expectations in mind until a message posted in my Apapa community
group woke me up to the fact that Lagos State had passed a new Land
Use Charge Law, and the effect of the law was an astronomical
increase in the charges. The law has been widely analysed and it is
safe to say that it has not been well-received, at least not by
anyone I know who has received their bill from the State
Government.

Last week, I received a bill from the State which represents a
660 per cent increase on the amount of the previous bill for the
same property. Although the copy of the law that I have does not
state a commencement date for the law, it is obvious to those who
have received a bill that the law commenced with immediate
effect.

The law provides a formula for determining the land use charge
on a property which takes into consideration the area of the land;
the market value of the land; the average construction value of
medium quality buildings in the neighbourhood; the depreciation
rate; the rate of relief (where applicable); and the charge rate. I
have read analyses that report that the formula was developed to
bring more certainty to the charge on properties liable to pay the
land use charge. That would be a laudable objective but of what use
is this certainty to a person who cannot afford to pay the charge?
The law also provides in Section 10 (2) that the market value of a
property will be reviewed every five years and the land value and
building value rates may be in line with the rate of inflation. How
this all translates in a neighbourhood like Apapa that has seen
property values drop and occupancy rates increase due to the
neglect of government is best left for discussion on another
day.

This is in a country where, for at least the past three years,
inflation rates have hovered at approximately 16%; the minimum wage
has remained static; there have been thousands of job losses,
rising unemployment rates; and the purchasing power of ordinary
citizens has diminished, yet a group of people supposedly sitting
together to promote the interests of the people comes up with ways
to crush the people with a quick succession of increases in rates
and taxes. We do not need an economics degree to know that this law
was ill-conceived and ill-timed. It is either the government is
aloof or it is insensitive, neither is good. A government should
have policies that encourage the growth and advancement of its
citizens. But Lagos State seems hell bent on creating a hostile
environment for businesses and citizens. An environment that chokes
the life out of budding development. If the drive is to increase
internally generated revenue, why is it the citizens who are
already struggling to survive who must bear the weight?

What the actions of the Lagos State Government (legislature and
executive arms) clearly tell us is that our votes do not count. If
the Lagos State Government believed in the power of the electorate,
there is no way that such a law could be passed months before a
general election, by a group of grown-up, sober men and women who
were elected to protect the interests of their constituents. The
citizens of Lagos can and should see this as a call to action. Such
action as would send a clear message to the politicians that they
are in position to serve the interests of the people. We can only
do this by participating in the electoral process and showing up to
cast our votes on election day. There is no “they” in this; “we”
must speak with our votes at the next elections.

I shall conclude with a quote from Calvin Coolidge (30th
President of the United States of America):

“A government which lays taxes on the people not required by
urgent public necessity and sound public policy is not a protector
of liberty, but an instrument of tyranny. It condemns the citizen
to servitude. One of the first signs of the breaking down of free
government is a disregard by the taxing power of the right of the
people to their own property. It makes little difference whether
such a condition is brought about through the will of a dictator,
through the power of a military force, or through the pressure of
an organized minority. The result is the same. Unless the people
can enjoy that reasonable security in the possession of their
property, which is guaranteed by the Constitution, against
unreasonable taxation, freedom is at an end. The common man is
restrained and hampered in his ability to secure food and clothing
and shelter. His wages are decreased; his hours of labour are
lengthened.”

What we do at the polls next year will be a testament to how
much we value our freedom.