The Manufacturers Association of Nigeria (MAN) has insisted that the Governor Ambode led Lagos State Government should have a re-think on its controversial Land Use Charge (LUC).
The association maintained that the reduced rates rolled out by the government was still high and that the charge would do more harm than good to the economy of the state.
President of MAN, Dr Frank Jacob, told the News Agency of Nigeria (NAN) on Saturday in Lagos that the Akinwunmi Ambode administration needed to think deeper before putting the charges in place.
Jacob argued that the global best practice was to tie increase in charges and rates to the country’s inflation rate.
“We still maintain that the rate is high. The current rate of inflation in the country is between 14 and 15 per cent.
“We think that the increase the Lagos State Government is proposing to do should not be more than 25 per cent of what was paid the previous year and not the current rate reduction of 25 or 50 per cent for property owners.
“If we have 200 per cent increase and it’s reduced by 50 per cent, it means that people are still paying 100 per cent of what they were paying before and that is too high.
“The rate of any increase should not be more than the prevailing inflation rate of the country, so that it would be easy for people to pay and also to maintain survival of the manufacturing sector.
“We hope the government would do more than what they have just done. It is encouraging that they listened to the cries of the people but I do not think they have done enough,” Jacob said.