Land Use Charge: Lagos will protect tenants from “Shylock landlords” – Commissioner

The Lagos State government has vowed to protect
tenants from those it described as “Shylock landlords” who might be
planning to use the recent increase in land use charges in the
state to arbitrarily increase rent.

The state’s Commissioner for Information, Kehinde Bamigbetan,
told journalists at a press conference in Lagos on Saturday
afternoon that Lagosians should allay the fear that the
government’s controversial hike in property taxes will lead to an
astronomical increase rent as government has decided to side with
tenants and will vigorously implements its tenancy and consumer
protection legislation to curb capricious increases in rent.

“We would side with the tenants in their struggle,” Mr
Bamigbetan said.

“We are strengthening our tenancy law. We are going to back the
tenants against Shylock landlords,” he added.

The Lagos State Tenancy Law 2011 was hailed for prohibiting
landlords from demanding in excess of one year’s rent from
prospective tenants and for making it criminal for landlords to
demand or receive rent in excess of 6 months for a monthly tenant,
or 1 year from a yearly tenant. It is also unlawful for the sitting
tenant to offer or pay rent in excess of 1 year for a yearly tenant
and 6 months for a monthly tenant.

While inaugurating the board of the state Consumer Protection
Agency in January, the State Governor, Akinwunmi Ambode, said the
agency was “a strong demonstration of our commitment to the
protection of the rights of consumers, the promotion of consumer
satisfaction in the State and our resolve to ensure that they get
value for money spent on goods and services.”

He also said as the commercial nerve-centre of the country, the
agency is charged to address infractions on consumers rights and
will complement his administation’s reform towards the ease of
doing business in the state.

It, however, remain to be seen if the government will match its
words with action. The Lagos state government has a history of not
enforcing non-revenue generating laws.

A widespread outrage greeted the government’s announcement of
increases in land use charges. Residents, pressure groups and
professional organisations in the states have called on the
government to reverse the increases.

Many residents argued that the increases will result in a hike
in rent across the state as landlord will transfer the new charges
to tenants.

“It is clear that if these regimes of tax are allowed to stay,
Lagos state would have been turned into a toxic environment and a
living hell. Even ordinarily in Lagos state, accommodation is only
cheap and easily affordable i.e. for those who have the parks and
under the bridge to sleep and dwell,” said Adesina Ogunlana, the
chairman of the Ikeja branch of the Nigeria Bar Association (NBA),
in a statement.

But the government had argued that the increases were marginal,
and the charges had remained the same for 15 years despite the
provision of the law stipulating an upward review of the charges
every five years. It also argued that retirees and religious
organisations were exempted from paying taxes on their
properties.

“Lagos needs funds to build infrastructures”

Reeling out a list of projects and programmes the government
embarked upon, Mr Gamigbetan explained that the funds to be
generated from the increase in the land use charges will be put to
proper use. He said that many of projects embarked upon were
financed with funds generated from short-term loans and bonds. He
said but the government has come to realise that it was not
sustainable in the long-run.

He said the government has a vision to bring the state to par
with some of the best cities in the world. But money is required to
put the infrastructures in place.

On education, Mr Bamigbetan said the state requires as much as
N180 billion to rehabilitate classrooms and N20 billion of that
amount was released last year.

He painted an ugly picture of the what the future holds for
youth in the state if the government is unable to raise enough
funds to put the right amenities in place.

He said if the government was thinking in the short-term, it
would not stir the hornet’s nest by increasing the land use charge.
He said the government believes that difficult choices have to be
made now to guarantee the rosy future the government is working
towards for the state.

“The general assessment, compared to other states government, is
that it has a high approval rating. Why would the government stoke
the embers of controversy? Why will it go on a mission that will
hurt its own self-interest to continuously be in the minds of the
people in a positive light?” he asked.

The Lagos State government has vowed to protect
tenants from those it described as “Shylock landlords” who might be
planning to use the recent increase in land use charges in the
state to arbitrarily increase rent.

The state’s Commissioner for Information, Kehinde Bamigbetan,
told journalists at a press conference in Lagos on Saturday
afternoon that Lagosians should allay the fear that the
government’s controversial hike in property taxes will lead to an
astronomical increase rent as government has decided to side with
tenants and will vigorously implements its tenancy and consumer
protection legislation to curb capricious increases in rent.

“We would side with the tenants in their struggle,” Mr
Bamigbetan said.

“We are strengthening our tenancy law. We are going to back the
tenants against Shylock landlords,” he added.

The Lagos State Tenancy Law 2011 was hailed for prohibiting
landlords from demanding in excess of one year’s rent from
prospective tenants and for making it criminal for landlords to
demand or receive rent in excess of 6 months for a monthly tenant,
or 1 year from a yearly tenant. It is also unlawful for the sitting
tenant to offer or pay rent in excess of 1 year for a yearly tenant
and 6 months for a monthly tenant.

While inaugurating the board of the state Consumer Protection
Agency in January, the State Governor, Akinwunmi Ambode, said the
agency was “a strong demonstration of our commitment to the
protection of the rights of consumers, the promotion of consumer
satisfaction in the State and our resolve to ensure that they get
value for money spent on goods and services.”

He also said as the commercial nerve-centre of the country, the
agency is charged to address infractions on consumers rights and
will complement his administation’s reform towards the ease of
doing business in the state.

It, however, remain to be seen if the government will match its
words with action. The Lagos state government has a history of not
enforcing non-revenue generating laws.

A widespread outrage greeted the government’s announcement of
increases in land use charges. Residents, pressure groups and
professional organisations in the states have called on the
government to reverse the increases.

Many residents argued that the increases will result in a hike
in rent across the state as landlord will transfer the new charges
to tenants.

“It is clear that if these regimes of tax are allowed to stay,
Lagos state would have been turned into a toxic environment and a
living hell. Even ordinarily in Lagos state, accommodation is only
cheap and easily affordable i.e. for those who have the parks and
under the bridge to sleep and dwell,” said Adesina Ogunlana, the
chairman of the Ikeja branch of the Nigeria Bar Association (NBA),
in a statement.

But the government had argued that the increases were marginal,
and the charges had remained the same for 15 years despite the
provision of the law stipulating an upward review of the charges
every five years. It also argued that retirees and religious
organisations were exempted from paying taxes on their
properties.

“Lagos needs funds to build infrastructures”

Reeling out a list of projects and programmes the government
embarked upon, Mr Gamigbetan explained that the funds to be
generated from the increase in the land use charges will be put to
proper use. He said that many of projects embarked upon were
financed with funds generated from short-term loans and bonds. He
said but the government has come to realise that it was not
sustainable in the long-run.

He said the government has a vision to bring the state to par
with some of the best cities in the world. But money is required to
put the infrastructures in place.

On education, Mr Bamigbetan said the state requires as much as
N180 billion to rehabilitate classrooms and N20 billion of that
amount was released last year.

He painted an ugly picture of the what the future holds for
youth in the state if the government is unable to raise enough
funds to put the right amenities in place.

He said if the government was thinking in the short-term, it
would not stir the hornet’s nest by increasing the land use charge.
He said the government believes that difficult choices have to be
made now to guarantee the rosy future the government is working
towards for the state.

“The general assessment, compared to other states government, is
that it has a high approval rating. Why would the government stoke
the embers of controversy? Why will it go on a mission that will
hurt its own self-interest to continuously be in the minds of the
people in a positive light?” he asked.