Bimbola Oyesola
The Manufacturers Association of Nigeria (MAN) has warned that the new Land Use Charge (LUC) Act is an unfriendly gesture that would worsen the problems of the manufacturing sector.
Its President, Dr. Frank Jacobs, reacting to the 50 per cent reduction noted that the review, no doubt, is a step in the right direction, but that technically, the LUC payable is still very high, hence the discount is not justifable. “It is a product of executive fiat that is subject to abuse and did not alter the relevant provisions of the law in contention,” he said.
The MAN President stressed that the new LUC Act is a conspiracy against investments, the growth of the manufacturing sector and the people of Lagos State.
He stated: “It is unacceptable to MAN; it is not acceptable to the Organised Private Sector (OPS) and it is unacceptable to the general public.
“Imagine the huge negative impact the arbitrary upward valuation of property backed with an increase in LUC of between 200 and 1,000 per cent would have on rent, real estate investments, the running costs of businesses, overhead cost of manufacturing concerns, general prices of goods and services, employment and the welfare of the populace. This is not only outrageous but a big slap on the effort of the Federal Government on the ease of doing business.”
Jacobs recalled that in 2001/2002 when the LUC Act was first introduced during the administration of Asiwaju Bola Ahmed Tinubu, the association engaged the government constructively.
According to him, when the engagement process ended in a deadlock, MAN went to court and challenged the law and advised its members not to pay LUC until the outcome of the suit.