Mandate to Collect Stool Land Revenue

The Office of the Administrator of Stool Lands (OASL) is mandated by Article 267 (2) of the 1992 Constitution and the Office of the Administrator of Stool Lands Act 1994 (Act 481) to collect stool land revenue and to disburse same to the beneficiaries.

Sources/Types of Stool Land Revenue

Ground Rents: These are specified amounts payable annually by holders of leasehold grants and other terminable interests in Land transactions in respect of plots/parcels of land for residential, industrial, commercial, religious and other habitation uses. It is payable whether the land is developed or not.

Annual Rents: for Timber and Mineral Concessions: These are amounts payable annually for the land by Timber firms for operating Timber Utilisation Contracts and Mining firms for operating on Mineral Concessions granted by Forestry Commission and Mineral Commission respectively.

Farm Rents: These are specified amounts usually on acreage basis payable annually by tenant and settler farmers for occupying stool land for agricultural purposes.

Mineral Royalties: These are amounts payable by mining companies in respect of minerals produced over a period. Currently, mineral royalties are of a range of between 3 and 6 per cent of the value of minerals produced.

Timber Royalties: These are payments made by timber firms and are payable within 30 days of billing by holders of timber Utilisation Contracts (Concessions) in respect of timber harvested from Stool Land

Compensation: This is an amount (Lump sum or annual rental) received from the Government for stool lands compulsorily acquired by executive instrument under the Administration of State Lands (1962) Act 124.

Other Revenue: These are revenue collected by the OASL in the form of dues, charges, fees etc. from occupants and users of stool land resources including sand/stone winning, charcoal burning etc for disbursement.

Why Pay Rent?

Payment of Ground Rent, Annual Rent, Farm Rent Mineral Royalties, Timber Royalties, Compensation and other Revenue are ways of recognising the existence of an owner (this could be an alloidal owner or other). The rent is paid and used for the development and well being of the beneficiary community. Please refer to Article 267 (6) of the 1992 republican constitution of Ghana.

How Rents are assessed

The amount of rent payable as contained in the lease document is dependent on a number of factors some of which are discussed below and as agreed by the parties to the lease ( i.e. the Lessee and the Lessor). The assessment of the amount of ground rent payable takes into consideration the following:

The type of use – The type of use usually determines the income earning ability of the land. Hence for example an industrial plot of land attracts a bigger rent as compared to an agricultural plot.

The location – The closer a plot of land is to the built environment, availability of social amenities and neighbourhood quality, the higher the value and hence the bigger the amount of rent payable. Residential neighbourhoods are classified into 1st Class, 2nd Class, 3rd Class, etc and these classifications influence the amount payable as rent.

The size (acreage) – All things been equal, the bigger the size of the land the more the rent payable and vice versa.

Revision of Rents

Rents are revised periodically to take care of inflation, the depreciation of the local currency and the price appreciation (in value terms) of the land over time. Usually, the lease agreement stipulates the frequency of the revision. However on average, rent revisions are on average of 5 year intervals.

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National Project Co-ordinator Land Administration Project (LAP) Ministry of Lands and Natural Resources 
P. O. Box MB 212 
Accra, Ghana

  • Tel: 233 – 0303 – 969687

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