Challenges and Opportunities in Implementing Land Use Charge Law in Enugu State: Lessons Learned and Future Directions

This study explores the challenges and opportunities in implementing the Land Use Charge (LUC) system in Enugu State, Nigeria, with a focus on the utilization of generated revenue and the implementation hurdles faced. The study adopted a descriptive survey design, with data gathered through questionnaires administered to property owners and registered estate surveyors in Enugu North Local Government Area. A total of 608 questionnaires were distributed, and 542 valid responses were retrieved. Data analysis, using Z-tests, revealed a significant positive relationship between the effective utilization of revenue generated from the LUC system and the system’s overall performance (Z (95, n = 542) = 20.313, p < 0.05). Furthermore, challenges encountered in the implementation of the system were found to have a significant positive correlation with its success (Z (95, n = 542) = 12.91, p < 0.05). The findings indicate that both optimizing revenue utilization and addressing implementation challenges are crucial for enhancing the effectiveness of the LUC system. Based on these results, the study recommends improving revenue management through transparency and efficiency, as well as providing capacity building for tax administrators to tackle implementation challenges. These steps are expected to enhance the sustainability and efficiency of the LUC system in Enugu State, contributing to the state’s economic development.