Land Use Charges and Their Contribution to Internally Generated Revenue in Enugu State (2016–2022): A Fiscal Analysis

In an era of fluctuating federal allocations and increasing fiscal decentralization, Nigerian states are compelled to enhance their Internally Generated Revenue (IGR) through alternative sources. One such source is the Land Use Charge (LUC), introduced to unify property-based taxes and optimize revenue collection. Enugu State adopted the LUC framework in 2016 through the Enugu Property and Land Use Charge Law (EPLUC), intending to streamline taxation on land and property. However, the actual fiscal contribution of LUC to the state’s IGR remains subject to debate. This study conducts a fiscal analysis of LUC's revenue performance in Enugu State from 2016 to 2022. A longitudinal mixed-method approach was used. Revenue data obtained from the Enugu State Board of Internal Revenue was analyzed alongside responses from 400 stakeholders, including property owners, tax officials, and estate valuers across three major LGAs: Enugu North, Enugu South, and Enugu East. Descriptive statistics and trend analysis were employed to evaluate the yearly LUC revenue performance as a percentage of total IGR. Findings reveal a fluctuating and ultimately declining trend in the fiscal yield of LUC. In 2017, LUC accounted for 11.7% of total IGR, but by 2022, it contributed only 3.3%, representing a 71.7% drop. The decline is attributed to factors such as outdated property databases, poor enforcement, low compliance, and lack of digital infrastructure. Despite urban expansion and increased property development, the fiscal potential of LUC has remained largely untapped. The study concludes that without systemic administrative reform and digital transformation, the LUC will continue to underperform. Recommendations include automated property valuation, development of a GIS-enabled land database, improved enforcement mechanisms, and taxpayer education. These reforms are necessary to ensure that land-based taxation becomes a viable component of Enugu State’s long-term fiscal sustainability.