Enugu Govt Slashes Land Rates by 60%, Bans Illegal "Ogbonecheagu" Levies
Governor Peter Mbah of Enugu State
In a move to provide significant relief to residents and investors, the Enugu State Government has announced a sweeping 60% reduction in land related rates and a total ban on all forms of illegal levies across the state. Governor Peter Mbah, represented by the Secretary to the State Government (SSG), Prof. Chidiebere Onyia, unveiled these reforms during a stakeholders’ town hall meeting on land sector development held at the International Conference Centre, Enugu, on Thursday.
Unified Land Use Charge and Rate Slashes
The central pillar of the new reform is the introduction of a Unified Land Use Charge. This policy consolidates ground rent, land use charges, and all property-related taxes into a single annual payment. By streamlining these charges, the government has achieved a unified reduction of over 60%, aimed at lowering the cost of living and making the state more attractive to real estate developers.
Under the new system:
Single Payment Point: Property owners will now pay only once annually through the Enugu State Internal Revenue Service (EIRS).
Universal Application: The unified charge applies to all properties, whether located within government-owned estates or private layouts.
Digitisation: All payments and records are being harmonized through the Enugu State Geographic Information System (ENGIS), eliminating hidden charges and double allocations.
Abolition of "Ogbonecheagu" and Illegal Levies
A major highlight of the town hall was the immediate and total ban on the controversial "Ogbonecheagu" fees illegal levies often collected by some communities and local government agents from land developers. Governor Mbah declared these collections illegal and ordered their outright abolition following years of complaints regarding extortion and harassment of builders.
To ensure compliance, the state has:
Constituted a Task Force: A dedicated team will patrol and enforce the ban on illegal check-points and site-level extortions.
Whistleblowing Mechanism: Residents who are coerced into paying illegal charges are urged to submit evidence to a dedicated email (Whistleblowing@enugustate.gov.ng) for immediate intervention.
Urban Expansion and Security of Tenure
The Commissioner for Lands and Urban Development, Chimaobi Okorie, revealed that the administration has also signed an executive order designating nine additional local government areas as Urban Areas. This move is intended to facilitate structured planning, infrastructure development, and the issuance of Certificates of Occupancy (C of O) in areas previously considered rural.
The Managing Director of ENGIS, Mr. Chiwetalu Nwatu, added that the full digitisation of land records now allows for the tracking of every plot in the state. This technological integration ensures that C of O applications are processed with unprecedented speed, typically within 48 to 72 hours, significantly improving the ease of doing business in the state's property sector.
The 60% slash in land rates and the crackdown on illegal levies signal a departure from the "multiple taxation" era that has long hampered Enugu’s real estate growth. By simplifying the tax burden and removing the informal "toll-gate" system at construction sites, the Mbah administration seeks to unlock the economic potential of the state’s land assets. Stakeholders, including traditional rulers and estate developers, have hailed the move as a necessary catalyst for urban renewal and a bold step toward making Enugu a premier destination for sustainable investment.
